HOW TO FOSTER EUROPEAN WORKS IN NON-LINEAR SERVICES? PART 1 - REPORT FROM POLAND Kamil Przełecki (Poland) KIPA Producer AGORA SA Director of multimedia.

HOW TO FOSTER EUROPEAN HOW TO FOSTER EUROPEAN WORKS IN NON-LINEAR SERVICES?WORKS IN NON-LINEAR SERVICES?

PART 1 - REPORT FROM POLANDPART 1 - REPORT FROM POLAND

Kamil PrzeKamil Przełełecki (Poland)cki (Poland)KIPAKIPAProducerProducerAGORA SAAGORA SADirector of multimedia convergence and developmentDirector of multimedia convergence and development

POLANDPOLAND

NEW MEDIA OVERVIEWNEW MEDIA OVERVIEWPOLISH MARKETPOLISH MARKET

17 M Internauts (at least once a month 17 M Internauts (at least once a month using Internet) / 38 M population / 11 M using Internet) / 38 M population / 11 M use Internet everydayuse Internet everyday

Internet is the 3rd medium Internet is the 3rd medium (advertisement market) after TV and (advertisement market) after TV and MagazinesMagazines

Poland is the 8th biggest Internet Poland is the 8th biggest Internet market in Europemarket in Europe

3 main TV stations / 4 mainstream 3 main TV stations / 4 mainstream channels (> 15% share); over 100 sat channels (> 15% share); over 100 sat and cable channelsand cable channels

5 main cable TV operators (> 300 k)5 main cable TV operators (> 300 k)

5 main Internet portals (> 12 M users)5 main Internet portals (> 12 M users)

3 TV digital platforms3 TV digital platforms

REPORT FROM POLANDREPORT FROM POLANDMARKET OVERVIEWMARKET OVERVIEW

VOD SERVICESVOD SERVICESMAIN PLAYERSMAIN PLAYERS

Digital Platforms (Cyfrowy Polsat Digital Platforms (Cyfrowy Polsat Cyfra +, n,)Cyfra +, n,)

Cable TV Operators (Aster, Cable TV Operators (Aster, Multimedia, Vectra, UPC)Multimedia, Vectra, UPC)

IPTV / ISP – Telekomunikacja IPTV / ISP – Telekomunikacja Polska – „Wideostrada”Polska – „Wideostrada”

7 main legal Internet VOD services 7 main legal Internet VOD services with different business modelswith different business models

Pirates Pirates

4 mobile operators (116% of 4 mobile operators (116% of penetration) – development phasepenetration) – development phase

Game console networks - ???Game console networks - ???

REPORT FROM POLANDREPORT FROM POLANDVOD SERVICESVOD SERVICES

WHO OWNS INTERNET VOD? WHO OWNS INTERNET VOD? MAIN INTERNET VOD PLAYERSMAIN INTERNET VOD PLAYERS

LEGAL CONTENT June 2010LEGAL CONTENT June 2010

TVP.pl TVP.pl - TVP SA - Polish Public Television- TVP SA - Polish Public Television A,TA,TVod.onet.plVod.onet.pl - TVN SA - Commercial TV & Portal (Media Company)- TVN SA - Commercial TV & Portal (Media Company) A,T,SA,T,SIPLA.plIPLA.pl - POLSAT SA - Commercial TV- POLSAT SA - Commercial TV A,TA,TWaszefilmy Waszefilmy - SPI – movie distributor / supported by Portal - SPI – movie distributor / supported by Portal AACineman.plCineman.pl - Monolith –movie distributor - Monolith –movie distributor TTIplexIplex - private capital company- private capital company A (T)A (T)TV ScreenTV Screen - private capital company- private capital company TT

MultimopleksMultimopleks - private capital company- private capital company TTNetino.plNetino.pl - private capital company (first VOD service in Poland ‘2006)- private capital company (first VOD service in Poland ‘2006) TT

REPORT FROM POLANDREPORT FROM POLANDVOD SERVICESVOD SERVICES

T-VODT-VODtransactionaltransactional

S-VODS-VODsubscriptionsubscription

A-VODA-VODadvertisementadvertisement

WHAT CONTENT? WHAT CONTENT? MAIN PLAYERSMAIN PLAYERS

WHAT?WHAT?Movies (mainly US)Movies (mainly US)DocumentariesDocumentariestv programs (tv Polish) tv programs (tv Polish) Series (tv Polish)Series (tv Polish)Sports (licensed)Sports (licensed)

HOW?HOW?rent for free (ads) or charge (from €0,80 to €3,00)rent for free (ads) or charge (from €0,80 to €3,00)up to 300 items per serviceup to 300 items per servicebitrate from 500 kbs to 1,5 Mbs (SVHS quality) / 1 GB per movie, cost circa €0,08bitrate from 500 kbs to 1,5 Mbs (SVHS quality) / 1 GB per movie, cost circa €0,08Instant watch or downloadInstant watch or download

REPORT FROM POLANDREPORT FROM POLANDVOD SERVICESVOD SERVICES

T-VODT-VODtransactionaltransactional

S-VODS-VODsubscriptionsubscription

A-VODA-VODadvertismentadvertisment

WHO WATCH IT? WHO WATCH IT? MAIN PLAYERSMAIN PLAYERS

AVARAGE AVARAGE

PER SERVICE (TOP 3) / PER MONTHPER SERVICE (TOP 3) / PER MONTH

from 300 000 to 1 500 000 UU (unique users) per monthfrom 300 000 to 1 500 000 UU (unique users) per month

usually people from big cities > 25+ usually people from big cities > 25+

over 1 000 000 impressions (played videos – started)over 1 000 000 impressions (played videos – started)

only from Poland – geo lock filtering systemonly from Poland – geo lock filtering system

REPORT FROM POLANDREPORT FROM POLANDVOD SERVICESVOD SERVICES

T-VODT-VODtransactionaltransactional

S-VODS-VODsubscriptionsubscription

A-VODA-VODadvertismentadvertisment

WHAT MATTERS? WHAT MATTERS? INTERNET VODINTERNET VOD

FOR USERFOR USERFor free (!) - pirates give no chances for chargingFor free (!) - pirates give no chances for chargingGood contentGood contentSmart technology (users don’t like DRMs)Smart technology (users don’t like DRMs)Wide dataWide databbase – even niches ase – even niches

If something is not present on TV / RENTAL / CINEMA If something is not present on TV / RENTAL / CINEMA ––> could be found („browsed” / „googled”) on the WEB> could be found („browsed” / „googled”) on the WEB

FOR PROVIDERFOR PROVIDERTraffic (data distribution) cost (€0,08 / GB)Traffic (data distribution) cost (€0,08 / GB)Promotion (services are supported by media companies)Promotion (services are supported by media companies)Financial support (US production have high level of MG for licenses)Financial support (US production have high level of MG for licenses)

REPORT FROM POLANDREPORT FROM POLANDVOD SERVICESVOD SERVICES

T-VODT-VODtransactionaltransactional

S-VODS-VODsubscriptionsubscription

A-VODA-VODadvertismentadvertisment

HOW TO FOSTER EUROPEAN HOW TO FOSTER EUROPEAN WORKS IN NON-LINEAR SERVICES?WORKS IN NON-LINEAR SERVICES?

PART 2 – QUESTIONS, PROBLEMS AND SOLUTIONSPART 2 – QUESTIONS, PROBLEMS AND SOLUTIONS

Kamil PrzeKamil Przełełecki (Poland)cki (Poland)KIPAKIPAProducerProducerAGORA SAAGORA SADirector of multimedia convergence and developmentDirector of multimedia convergence and development

VOD / European WOrksVOD / European WOrks

OUR PROBLEMS:OUR PROBLEMS:> > NO SPACE ON TV’S AND CINEMAS’ SCREENS - AMERICAN BLOCKBASTERS RULEZ!!NO SPACE ON TV’S AND CINEMAS’ SCREENS - AMERICAN BLOCKBASTERS RULEZ!! (MULTIPLEX CINEMAS SHOW MOVIES FOR FEW WEEKS ONLY) (MULTIPLEX CINEMAS SHOW MOVIES FOR FEW WEEKS ONLY)

> > NO TIME IN A PRIME TIME ZONENO TIME IN A PRIME TIME ZONE (EUROPEN PRODUCTIONS ARE BROADCASTED USUALLY AFTER 11 p.m) (EUROPEN PRODUCTIONS ARE BROADCASTED USUALLY AFTER 11 p.m)

> > LANGUAGE BARRIERLANGUAGE BARRIER

> > TRADITIONAL DISTRIBUTION IS EXPENSIVE (35mm copy cost >1000 Euro) TRADITIONAL DISTRIBUTION IS EXPENSIVE (35mm copy cost >1000 Euro) (ART-HOUSES AND DIGITAL CINEMA HELP) (ART-HOUSES AND DIGITAL CINEMA HELP)

> PROMOTION > PROMOTION

> PIRACY> PIRACY (YOU CAN NOT FIGHT THE PIRACY – YOU CAN ONLY OFFER A LEGAL (YOU CAN NOT FIGHT THE PIRACY – YOU CAN ONLY OFFER A LEGAL ALTERNATIVE) ALTERNATIVE)

VOD / EuropeanVOD / European Works Works

% OF WHAT?% OF WHAT?Time / Assets – Titles / GigaTime / Assets – Titles / Giga bbyytes/ Auto promotion space?tes/ Auto promotion space?

WHICH MEASURE SYSTEMWHICH MEASURE SYSTEM

VOD / European WOrksVOD / European WOrks

You can have 100 hours of EU movies on the service, You can have 100 hours of EU movies on the service, and only 3 hours of US movies, and… and only 3 hours of US movies, and…

… only 3 hours of US movies will be watched! … only 3 hours of US movies will be watched! WHY?WHY?

IT DEPENDS ON THE HIGHLIGHTS PROMOTION AREAIT DEPENDS ON THE HIGHLIGHTS PROMOTION AREA

SELF-REGULATIONSELF-REGULATION> NO MG’S FOR PRODUCERS > NO MG’S FOR PRODUCERS > A-VOD PROMOTION & SHARE REVENUES> A-VOD PROMOTION & SHARE REVENUES> VOD SERVICES WILL PROMOTE FREE CONTENT> VOD SERVICES WILL PROMOTE FREE CONTENT> VOD SERVICES WILL SHARE REVENUES FROM ADS> VOD SERVICES WILL SHARE REVENUES FROM ADS> INTERNET HAS NO LIMITATIONS > INTERNET HAS NO LIMITATIONS

VOD / EuropeanVOD / European Works Works

> NEEDED FINANCIAL SUPPORT FOR TRANSLATIONS> NEEDED FINANCIAL SUPPORT FOR TRANSLATIONS

ADVANTAGEADVANTAGE::> US MAJOR STUDIOS DON’T WANT > US MAJOR STUDIOS DON’T WANT TO LICENCE IN A-VOD MODELTO LICENCE IN A-VOD MODEL> THEY PREFERE T-VOD & S-VOD> THEY PREFERE T-VOD & S-VOD

WHAT DOES MATTERS?WHAT DOES MATTERS?1)1) TO FOSTER TO GET REVENUES? TO FOSTER TO GET REVENUES? OR OR2)2) TO FOSTER TO PRESERVE AND PROMOTE A CULTURE?TO FOSTER TO PRESERVE AND PROMOTE A CULTURE? (EUROPEAN CULTURAL DIVERSITY) (EUROPEAN CULTURAL DIVERSITY)

VOD / EuropeanVOD / European Works Works

IF 1: POSSIBLE IN A-VOD SHARE REVENUE MODEL ( circa 30%-50%) IF 1: POSSIBLE IN A-VOD SHARE REVENUE MODEL ( circa 30%-50%)

IF 2: INTERNET VOD IS THE BEST MEDIUM TO DO THATIF 2: INTERNET VOD IS THE BEST MEDIUM TO DO THAT

- creating niches and archives- creating niches and archives of great European movies of great European movies

- - providing additional informations (as WIKI database)providing additional informations (as WIKI database)

- Ad sense promoting system in SEO- Ad sense promoting system in SEO

GOAL: to educate young generation in a smart wayGOAL: to educate young generation in a smart way

LET’S DO THAT!LET’S DO THAT!

Kamil PrzeKamil Przełełecki (Poland)cki (Poland)KIPAKIPAProducerProducerAGORA SAAGORA SADirector of multimedia convergence and developmentDirector of multimedia convergence and developmentE-mail: [email protected]: [email protected]

POLANDPOLAND