1 The Report of the EBU Digital Strategy Group MEDIA WITH A PURPOSE public service broadcasting in the digital age November 2002 Supplementary summary Part 1: New Maps of Media Space
2 What is the future of the electronic media? To make the subject manageable we can consider there are four dimensions. Technology changes the digital and software revolutions. Market Environment changes more channels, more players, in fact more everything. Consumer Behaviour changes more personalised services. Regulatory changes more complexity, the need for more clarity.
3 The underlying pattern.. We can understand the totality as an evolution of media delivery options. The first option for media delivery is (or was) that of limited channel flow. The second option is (or will be) digital multi-channel. The third option is (or will be) on on- demand the grown-up Internet.
4 But, the hype is over The simple model of on-demand sweeping all before it will not happen. The more likely future is of broadcast core services being augmented by multimedia, or other linear content, provided optionally. Even so, much will change and there will be much to change. This will be the age of cooperative content.
6 On-demand the simple way - PVRs? You won t have to wait for broadband for on- demand services. Personal Video Recorders provide a virtual on-demand service, by topping up a receiver store with the content you like, grabbed from a broadcast channel. But, so far they have not been that popular is this because of cost, lack of a common standard, or does it tell us something about the future demand for on-demand demand?
7 The changes in the media value chain The old value chain was simple TV and radio broadcaster on one side, and the viewer or listener on the other, via an open receiver market. The new value chain is more complex it has vertical integration elements. There are potential gatekeepers the multiplex, the conditional access,.. and more. There are new delivery networks.
10 And the public service mission? The public service mission began with frequency scarcity, but has evolved into something much more. The public service mision will be more important in the digital age. With enormous choice and content from anywhere, the public needs the islands of trust,, which will be provided by public service broadcasters.
11 MEDIA WITH A PURPOSE public service broadcasting in the digital age Executive Summary Part 2: Managing Digital Evolution
12 What content for the new media age? Linear broadcast (or on-line) programmes and multimedia co-operative operative content Web sites Widescreen Digital telephone helping out currently SMS, later MMS, UMTS The company must become bi-media or tri- media.
13 There is more to it... PSBs need to develop branding skills and tools. PSBs need better methods of audience research as a mechanism for effectiveness and accountability. More cooperation with other organisations including public/private partnerships.
14 What about rights in the New Media age? One of the most important issues to resolve. Rights are needed for cooperative content (mix of linear content/ multimedia). Archives are worthless without rights. Of course, there will be more competition for the rights for premium events.
15 What should be done? EBU Members should provide the best technology for rights protection they can your content is safe with us. EBU Members should negotiate multi- platform delivery rights from now on. Collective negotiation of rights whenever possible.
16 We need to change programme production infrastructure The overall change is from hardware hardware to software we will use PCs, servers, etc to do everything. The change is inevitable, but equipment interoperability is not yet possible, because of a lack of common standards Radio is easier to migrate than television, and thus will be the first into the IT transition
17 There is more Archives will be not something separate and on their own, but the heart of the production process. Broadcasters need to decide what metadata metadata (all the information) they need to make and distribute programmes. New organisation structures,, new work flows, new skills, and new attitudes are needed. The people problems will be greater than the technical ones.
20 Delivering content in the digital age A range of delivery means will be available. PSBs still have to provide a universal universal service. A A major issue is how should this be done terrestrially, by satellite, by cable? What is the right mix?
21 The day of the gatekeeper A critical issue for delivery. There will be a variety of barriers to get to the viewer, the conditional access system, the multimedia standard, and others, which create a technical universe which only the operator can inhabit. Broadcasters must fight for open standards, and access through proprietary barriers, nationally and regionally. The public has a right to ready access to public service broadcasters programmes.
23 One of the main problems is... How do you make free-to to-air digital broadcasting succeed either for radio or television? The diagonal integration models a mix of free-to to-air and pay have not been successful yet. Entirely free-to to-air - a horizontal market - has still to be fully proven. Even some vertically integrated (Pay-TV) markets have not be as successful as hoped. Finding a formula for starting our digital public goods is a critical issue.
24 Organising the company for the digital age Two general approaches structure essentially based on delivery channel or based on type of content. Two approaches to funding arrangements overall annual budgets,, or paying for services as you need them - internally ( producer's choice ) or externally (outsource production). Not possible to recommend a single approach for EBU members, suggest rather to make information available on the structures used by EBU Members.
27 Company re-organisation Organisational change takes courage. Involve the staff in the process. Only let the DG use consultants. Senior managers must grasp some of the technical and legal dimensions to make good decisions.
28 What of radio s future? Radio has survived Internet. Radio has a future it can use synergies with Internet streaming, on-demand programmes, e-radio, e I-radio. I But we have not yet succeeded with DAB, because receivers are not being made by the large manufacturers. This is a major issue.
29 Radio s to-do list Use DAB for new content and not existing channels otherwise who would buy it? Be present on all significant platforms back all the main horses in the race DAB, Internet, DVB-T, and digital phones take radio where the people are. Form alliances with private broadcasters to help make DAB happen DAB is the best technology for radio.
31 Key recommendations from Part 2 Keep the generalist channels as your mainstay, use new media to add value to the core channel(s). Put rights at the top of you list,, and remember there will be more competition for the best! Develop and establish your branding.
32 More Key Recommendations from Part 2 You need to transform your organisation from a single media organisation to a multimedia organisation. The biggest challenge will be human resources in the digital era. This is media evolution, not revolution stay close to the viewers and listeners, and try to go from strength to strength without over- extending. Don t run too far ahead of the public just a little.
34 MEDIA WITH A PURPOSE public service broadcasting in the digital age Executive summary Part 3: Mission and Financing
35 The Public service broadcasting contract The mission of public service broadcasting are established, inter alia, in a regulatory framework. The regulatory framework gives, inter alia, the obligations. The regulatory framework also gives, inter alia, the method of financing.
36 Regulating public services Regulations essentially outline the obligations and financing arrangements (the contract with society ). They stipulate what activities fall within the remit. They stipulate what institutions carry them out.
37 The obligations Universality of content and access (coverage). The service must be for the citizen and all citizens. Editorial independence. The service must be unbiased. High quality of services (content, technical). The service must be the best that human endeavour can reasonably provide. Accountability. The organisation and its goals must be transparent and the subject of public consensus.
38 Public service broadcasting serves society (inter alia) By supporting national culture in the widest sense of the word. By being a forum for debate on national issues and international issues. By being a force for social cohesion, reflecting multicultural richness rather than dividing the community.
39 Public service broadcasting is universal in the sense of: Coverage and content, providing a portfolio of services. Serving as a beacon amid the multitude of content providers. Actively promoting digital literacy and an awareness of the tools of the information society.
40 Editorial independence Public service broadcasters are charged by society with their tasks. These cannot be done if they become spokesmen for the government or an interest group. The objective is not always achieved even in Europe but we must strive for this.
41 Accountability The public service mission can be given in general terms but not in detail. It is the accountability which ultimately defines the public service broadcasting mission. Public service broadcasters must seek ways of obtaining feedback, and responding to the wishes and needs of the public and of being cost effective.
42 High Quality Public service broadcasting must aspire to be the benchmark in professionalism and high production values. Nations need a media industry, and the public service broadcaster can help provide and stabilise this. The by-words should be originality - stimulating content, resonating with themes taken from the current circumstances of life.
43 Financing public service broadcasting Funding arrangements are a national matter there is no unique right way. The licence fee has proved successful in some countries and could be kept. There are other public goods models also. Private goods models subscription, pay per view, would not serve the public service remit it would divide society.
44 More on financing public service broadcasting EBU Members have a mix of funding methods today largely receiver licence fee or advertising. In the new media environment it may be less easy to define what the receiver is. Watch this space PVRs may lead to ad- skipping. There are many issues to resolve ahead.
46 Public service broadcasters should be allowed to Make use of the all appropriate new media tools to fulfil their mission. Engage in partnerships to will bring funding that will support the public service mission. But financial separation will be essential in accounting, to ensure transparency.
47 Must carry principles in the digital era Public service broadcasting should be readily available as a right. Must carry principles should apply to the digital environment, and apply to multimedia also. Complete must provide would be unreasonable.
48 The need for a public service institution The evidence is that the public service mission needs an institution to carry it out. Distributed public services have many drawbacks. Public service service broadcasters should, however, outsource a degree of programme production,, where this is cost effective.
49 The bottom line Public service broadcasters need to migrate to a full portfolio model for digital delivery. This is how they will best serve the public in the digital age. For the public service broadcaster, money is the means to make programmes and serve the public, not the other way round.
50 Thank you for reading this presentation For more information visit ebu.ch/
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