Etude DDM Executive summary v2 EN

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European public service media and digital services: Present activity and development strategies - A survey managed by the Direction du Développement des Médias July 2008 EXECUTIVE SUMMARY 1. Public service media: leaders in the implementation of digital television and non-linear audiovisual services a. Linear TV channels In all of the countries of the European Union, public service media broadcast all or part of their TV channels on practically all of the available digital networks : digital terrestrial, cable, satellite and ADSL. Public service media have been particularly active in the launching of Digital Terrestrial Television (DTT), for example by setting up new general interest or specialised channels. They have increased the amount of free DTT channels made available to the public, enhanced DTT’s attractiveness and thus have given the consumers an incentive to purchase the appropriate set top box. Concerning personal mobile TV in broadcast mode, public TV channels will participate in most countries which already provide such services or plan to do so: Italy, Switzerland, Austria, Netherlands, France, Germany, and Ireland. It is to be expected that public TV should end up offering at least one mobile TV service in each European country. b. Non-linear services Nearly all public service media analyzed in the survey have developed non-linear audiovisual services. Indeed, among the 25 TV companies studied, 21 offer free ...

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• Publié par: Thoim
• Nombre de lectures: 9
• Langue: English

Extrait

Presence and strategies of European public service medias on digital services.

July 2008.

Executive summary

1

European public service media and digital services:

Present activity and development strategies

-

A survey managed by the Direction du Développement des Médias

July 2008

EXECUTIVE SUMMARY

1. Public service media: leaders in the implementation of digital television and

non-linear audiovisual services

a. Linear TV channels

In all of the countries of the European Union, public service media broadcast all or part of

their TV channels on practically all of the available digital networks : digital terrestrial, cable,

satellite and ADSL.

Public service media have been particularly active in the launching of Digital Terrestrial

Television (DTT), for example by setting up new general interest or specialised channels.

They have increased the amount of free DTT channels made available to the public,

enhanced DTT’s attractiveness and thus have given the consumers an incentive to purchase

the appropriate set top box.

Concerning personal mobile TV in broadcast mode, public TV channels will participate in

most countries which already provide such services or plan to do so: Italy, Switzerland,

Austria, Netherlands, France, Germany, and Ireland. It is to be expected that public TV

should end up offering at least one mobile TV service in each European country.

b.

Non-linear services

Nearly all public service media analyzed in the survey have developed non-linear audiovisual

services. Indeed, among the 25 TV companies studied, 21 offer free catch-up TV, 18 offer

podcast TV services and 4 offer functioning on-demand video (VoD) platforms.

Presence and strategies of European public service medias on digital services.

July 2008.

Executive summary

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The predominant business model is free access, pay-VoD services being quite rare. It is to

be noted that advertising tends to appear on some free catch-up TV services. Catch-up TV

services including contents and/or distribution offered against payment are very rare.

2. Public service media make full use of the internet

As the Internet’s significance as an information and entertainment source grows, and as it

attracts a growing number of web-users, public service media have begun to measure up to

this phenomenon and are trying to take up the new challenges it entails.

They see the necessity to develop their own sites and to provide new interactive services.

This is now a vital component of their media strategy, despite varying levels of development

from one company to another, in correlation to the development of the Internet in the country

(high-speed internet most importantly).

Non linear services are at the heart of this strategy. Whether dealing with catch-up TV

platforms or video services integrated in their web sites, public service media are trying to

adapt to changes in the way audiovisual products are used.

Public service audiovisual groups are building up their multimedia footprint on the Web,

notably through the implementation of a portal hosting a number of « programme brands »,

intended to promote their digital brand in a highly competitive environment. This is a

necessity if these companies are to be able to accomplish their public service mission and

link with people connecting to the web via computer or mobile device.

3. Catch-up TV services: extending on-the-air services

In order to improve their visibility and audience on the web, public service media began by

capitalizing on their TV and radio programmes, extending their lifetime beyond a single

airing. Catch-up TV services have thus developed, beginning with the broadcasters’ in-house

productions (in particular, news programmes) and bringing other productions in later, such as

TV series or documentaries.

However, due to the costs of acquiring rights from rights holders, the content proposed on

catch-up TV varies greatly from one public audiovisual company to the other. As the use of

online services develops, the incidence of rights held on programmes included in the public

media’s catch-up TV services becomes more and more important.. Public audiovisual

Presence and strategies of European public service medias on digital services.

July 2008.

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companies consider that these services are an extension of their linear services, and nearly

all of them have chosen a free-access model. The funding of their non linear services mainly

relies on public funds, advertising being insignificant, nonexistent, or even prohibited.

As more and more content is viewed by streaming or after downloading, a new question

arises: how to fund the purchase of additional bandwidth capacity from telecommunication

operators.

4. Online buzz strategy

As the number of fixed or mobile reception devices grows, some public service media have

chosen to distribute their catch-up TV services on multiple platforms, thus favouring visibility

and good exposure of their programmes over capturing the audience on their own site. This

viral strategy (or online buzz strategy) is in line with the “web 2.0” approach, according to

which the more “programmes brands” are available and used, the more the company’s and

channels’ global brand attractiveness improves. In other words, audiences captured on other

distribution networks may become on-air TV viewers and/or regular visitors on the web

portal. Broadcasting agreements between some public service media and video-sharing

platforms such as YouTube contribute to this strategy.

5. Implementing new in-house organizations

This cross-media strategy can be implemented by putting in place new organizational

structures by the public service media. These new structures are built around content and

are no longer based on the broadcasting media. In this way, some of these public media

have reorganized into “global media”.

6. VoD platforms and public service mission

VoD services such as catch-up TV are provided upon individual request. These services are

available on different devices: television sets, computers, mobile reception devices such as

mobile phones. Whereas catch-up TV services allow viewing of on-demand programmes

already broadcast in linear mode, VoD platforms mainly provide contents from the repertoire

or from events such as sports or music. VoD is very seldom taken into account in the public

service media’s digital strategies, which favour free services. Public audiovisual groups

mainly consider that, at this stage, delinearization of their programmes is primarily an

Presence and strategies of European public service medias on digital services.

July 2008.

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extension of their on-the-air policy, and that making pay VoD investment a priority is not their

primary purpose.

7. Audiovisual archives, a strategic issue

The development of on-demand services for audiovisual archives is in progress within most

public audiovisual companies. Providing this service raises the question of funding for

digitalization and indexation of archives, but it seems to be one of the priorities for most of

the companies analyzed in this survey. Some companies have made significant progress in

this field.

The way public service media handle audiovisual archives in the digital environment sets

certain companies apart from others. A sustainable business model, consistent with public

service objectives, is still to be achieved.

8. Radio stations: Online and mobile contents, an abundant supply

Launched more than four years ago, radio podcasts from public service media have spread

to their web sites. Less bandwidth-consuming than video, and less dependent on rights’

acquisition, these services have expanded with the development of the first generation of

MP3 players, in particular the iPod. For the same reasons, most radio stations simulcast their

programmes on the internet and integrate associated data, for example by describing the

titles they broadcast.

9. The mobile: tomorrow’s web terminal

Alongside the development of mobile high-speed internet, public service media are

developing specific contents for mobile devices, from SMS alerts to the production of specific

audiovisual contents, or reformatting existing contents.

These services – still emerging due to the high cost of mobile high-speed internet access,

should develop rapidly as “unlimited internet access” packages spread.

There are significant differences between the various public service media, in terms of

mobile services’ level of development. This is due mainly to the penetration rate of 3G and

3G+ mobile phones and to the cost of access to mobile audiovisual services.

Presence and strategies of European public service medias on digital services.

July 2008.

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10.

European public service media development on new digital media: striking the

right balance

Public-service media are defining their digital development’s strategies in a constantly

changing environment; this is true for the internet and will soon be the case for mobile

services:

-

The web user base keeps growing as networks develop and as the costs of access to

these services diminish (in particular owing to

triple play

services);

-

High-speed internet is spreading, its penetration rate in European households

constantly growing, which favours individual use of video;

-

The global supply of video and sound available on the internet and on mobile devices

keeps expanding, buoyed by the appearance of new sources of production such as

print press players, internet “pure players” or user-generated contents;

-

In this profuse supply, one mostly looks for professional and quality contents; this could

be a useful lever for public service media;

-

The broadcasting modes and formats are less and less compartmentalized and are

losing their specificity: HD broadcasting by different networks, 3D television,

partnerships with user-generated contents (UGC) video-sharing platforms (user-

generated videos), catch-up TV services provided both on TV sets and computers, etc.

-

Video search engines are improving, meaning that the “programme brand” notoriety will

become a decisive competitive asset;

-

To make up for lower ratings, historical general interest TV channels should emphasise

live broadcasts, dramatic and event-oriented programmes, as well as set up a

production and content-acquisition strategy for “cross-media” contents.

In this environment, the public service media are convinced that it is necessary to invest in

digital media. To this end, they have a strong asset in hand: their brand’s notoriety and

popularity. However, they have to make critical choices. They will need to choose between

preserving rights or widening distribution, between free access for all or increase of funding

needs – with, in the background, the issue of commercial profits –, and between service to

the widest audience or a niche strategy.

Beyond this uncertain context, public service media guarantee, at a fundamental level, the

richness and the diversity of audiovisual production, the handling of themes such as culture

or education, and media pluralism. It is vital that they be present on the new digital media.