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Cross Media Content

IST Consultation Meeting, 27 April 2000, Luxembourg

Report (DRAFT)

Birgit Neunert, May 2000

© ICM Analytics Limited

i

Cross Media Content Meeting – Report

Contents

1 Introduction 1

1.1 Scope and purpose of the meeting 1

1.2 Roles of participants 2

1.3 The report and definition 2

2 Context and trends in the area 3

3 Recommendations 6

3.1 Recommendations – general cross media requirements 6

3.1.1 Cross action themes 6

3.1.2 Research continuity 6

3.1.3 Technology implementation and integration 6

3.1.4 Supporting connectivity 7

3.1.5 Smaller and shorter projects 7

3.1.6 Best practice 7

3.1.7 Accessible studies 7

3.1.8 Similar topics across digital media sectors 8

3.2 Recommendations – cross media content, services and business models 8

3.2.1 Personalisation 8

3.2.2 Consumer agreements 9

3.2.3 Communities and consumer co-production 9

3.2.4 Measurement and tracking 9

3.2.5 Real-life test beds / content simulation 9

3.2.6 Broadcaster portals 10

3.2.7 Games and game communities 10

3.2.8 Interactive television 11

3.3 Recommendations – cross media production and delivery 11

3.4 Recommendations – cross media publishing 12

4 Appendix 13

ICM Analytics Ltd. 05/00

1

Cross Media Content Meeting – Report

1  Introduction

1.1  Scope and purpose of the meeting

The purpose of the Cross Media Content Meeting was to exchange views between experts and the Commission about key topics for the IST workprogramme 2001 in the area Multimedia Content and Tools (Key Action III). The meeting focused in particular on ‘cross media content’ and ‘integrated authoring for broadcasting, entertainment, advertising and publishing’.

Key Action III deals with the convergence of “ mobile communication, digital broadcasting, rich content and network infrastructures” and resulting broadband (multi)media content services. ICM Analytics summarised this relationship as four themes, which were addressed in the meeting:

1.  Issues in the interactive television sector (TV centric services)

2.  Issues in the broadband internet sector (PC centric services)

3.  Issues in the interactive broadband sector (multiple devices)

4.  Issues in the mobile internet sector (portable devices, location issues).

These themes are inter-linked with other Key Actions. Cross media services as well as underlying production, delivery and exploitation technologies are essentially related to the opportunities offered by novel network technologies and consumer devices (Key Action IV). They also require and/or result in new perspectives for Work and Business, including knowledge management (content and consumer data), e-business/e-production as well as new workplaces and workflows within cross media organisations. These issues relate to Key Action II. Some cross media projects will address ‘general-interest’ services, e.g. interactive public service offerings for citizens (Key Action I).

These links as well as the nature of the “cross” media topic itself indicate that cross media research represents the integrated nature of the IST programme and will therefore play an important role for Cross Programme Themes.

1.2  Roles of participants

The Commission asked Birgit Neunert (ICM Analytics) to act as Panel Rapporteur in the meeting and to produce this Report, which summarises the recommendations and identifies areas to be addressed in the IST programme.

There were two chairpeople: Birgit Neunert, who represented the broadcasting/broadband side of the topic, and Roberto Minio, who represented the publishing side.

Please refer to the appendix for a list of participating experts.

The experts were asked to advise on those thematic areas and types of activities that are relevant for applied research and development in the year 2001. These areas and activities relate to project results that come to market in 2003 – 2005.

1.3  The report and definition

This report cannot reflect the detailed debate. It summarises the contributions made by the group of experts and identifies relevant topical categories.

To focus the debate, ICM Analytics provided the following working definition of Cross Media Content for the purpose of this meeting:

Cross media content involves more than one medium, thus relating to topics such as interactive/enhanced programming or video enhanced (internet) radio. The term reflects multiple and integrated production/delivery for (1) interactive television and the Internet, (2) for integrated broadband channels and (3) for fixed and mobile networks. Cross media content is often produced for or received on a range of devices, including PCs, TVs (set-top-boxes), MP3 players, mobile phones and advanced handheld devices.

2  Context and trends in the area

The cross media market (broadband media) will develop rapidly over the next 3-5 years. Traditional broadcasters, publishers and internet content providers will migrate into increasingly similar ‘multimedia content providers’. In addition, new cross media players are entering the broadband media market. Most players will aim to exploit as many distribution channels as possible, thus delivering IP-based content across multiple networks and end user devices (including mobile/wireless) to personalised and more fragmented audiences. This will require integrated authoring, production and delivery as well as intelligent tracking and measurement systems for new personalised audiovisual media services. In order to exploit the opportunities offered by the digital media market, content providers need to apply new business models, content formats and user/audience relationships.

Key problems that need to be addressed by the IST research programme are therefore related to:

•  Personalisation and related measurement/profiling/tracking

•  Consumer agreements, interactivity and interactive advertising

•  Cross-platform audiovisual portals/services

•  Tools and systems for cross media production/delivery.

The cross media market is driven by the success of the Internet. According to NOP Research, internet penetration has now reached 47% in France, 22% in the UK and 33% in Germany (1999). 23% of users are planning to gain digital television internet access and 15% are planning to use their mobile phone to go online. By 2003, leading European countries will have approx. 3-10 million digital television subscribers (depending on development in each country). Most subscribers will access digital interactive services through their TV set. In addition, there will be an increasing number of broadband internet subscribers (DSL, cable modem or satellite) and related audiovisual broadband services. IDC forecasts 14 million European broadband subscribers for the year 2002 and a growth rate of 323% for DSL connections and 141% for cable modems. As a leading European country, the UK is expected have 1-3 million broadband subscribers by 2002.

According to Comsys, the demand for broadband services in Europe and Asia will surpass the US by 2010. The market will be worth $US 580 billions by 2010. Households and SMEs will account for most of the market.

Cross media content is enabled through integration between digital media market segments at various levels of analysis (e.g. content, media formats, enabling technologies, applications, distribution networks or partnerships).

Although each digital media market segment has different customers, usage contexts, content formats, primary devices as well as demand, revenue and distribution factors, there is an increasing degree of overlap between the interactive broadcasting and broadband internet segment (digital media integration or “convergence”). Both segments include streaming video/audio, enhanced programming, interactive channels, stand-alone applications such as games and leading web sites. The advance of compression technologies and IP-based authoring/delivery systems will further the integration between the broadcasting and internet sectors. Several players are now active in both market segments, including cable operators (e.g. Telewest in the UK), new broadband content platforms (e.g. Bertelsmann Broadband Group in Germany), true video on demand players (e.g. Video Networks in the UK) or internet portals such as AOL in the US (AOL, AOL Plus and AOL TV).

During 1999, many players entered the broadband media market with a focused objective to supply IP-based universal products and services via multiple networks and to multiple devices (e.g. Sit-up Entertainment, Bertelsmann Broadband Group or TWI). In addition, several alliances with the same purpose have been formed (e.g. Vodafone/Vivendi, AOL/Time Warner or Carlton/TF1). Broadcasters such as Canal+ or BSkyB have also adopted broadband media strategies, including new partnerships with interactive broadband media players. BSkyB, for example, partners with TiVo in the US (digital video recorder services) and Kingston Communications in the UK (true video on demand services).

These new players and services belong to the interactive broadband segment, as they cannot be allocated to a specific area of the digital media market. Many other digital media players from both the broadcasting and internet background are now migrating towards the interactive broadband segment and re-focus their media activities, marketing strategies and production facilities. As a consequence, a new broadband production and advertising market is emerging.

The development of compelling broadband or “cross media” content is a key driver for emerging digital media markets in Europe. Market players are

•  Content providers (e.g. broadcasting, production, publishing, advertising)

•  New broadband media players (e.g. DVR, VoD or high-speed internet)

•  New content providers (e.g. financial, retail, services, betting)

•  Internet content providers (e.g. webcasters, portals, web properties)

•  Network operators (e.g. DSL, cable modem, 2G/3G mobile)

•  Vendors (e.g. devices, software, e-commerce and delivery platforms).

By the year 2002, the broadband media market will have the following characteristics:

•  established interactive digital television platforms and services with increasingly open standards (MHP, Java) and advanced set-top-boxes (e.g. including digital video recorder and on demand facilities)

•  an increased proportion of interactive/enhanced programming and services (including advertising and commerce) across multiple platforms

•  high mobile subscriber penetration, WAP enabled handsets, new advanced handheld devices, GPRS/EDGE and emerging UMTS networks

•  established broadband internet media services (DSL, cable modem and increasingly wireless/satellite) with more mainstream audiences

•  increased integration of broadcasting and internet sectors in terms of production, distribution, marketing and partnerships.

3  Recommendations

3.1  Recommendations – general cross media requirements

3.1.1  Cross action themes

There are three topical areas that can be related to a number of Key Actions and may be suitable for Cross Action Themes: content, advertising and commerce. These broad themes have aspects relating to networks and devices as well as content, production and services.

3.1.2  Research continuity

Several issues in the current workprogramme will remain relevant in the future. It is important that the Commission demonstrates continuity in its support for applied research and also considers those proposals that cover topics already addressed in previous projects. The following issues are likely to remain important and will require further research:

•  Standards / interoperability

•  Intellectual property rights / copyright protection

•  Digital archiving and indexing

•  Interactivity concepts / lean-back interactivity

•  Personalisation

•  Cross media publishing

•  MPEG-4.

3.1.3  Technology implementation and integration

It is increasingly important to implement/integrate basic technologies that have already been developed outside IST projects. This can be achieved with demonstration or take-up projects within the IST programme.

The implementation of new and rapidly changing technologies and the adaptation of existing business and content processes is as important as technology development itself. Due to commercial drivers and the speed of development in digital media markets, core systems are likely to be developed outside IST projects (e.g. interactive television systems, storage based set-top-boxes or novel video compression technologies). Important implementation issues include:

•  New content formats and workflows

•  New partnerships and business models

•  New organisational forms and methods of work.

3.1.4  Supporting connectivity

Another important task for IST projects is to create connectivity between various market and research players. European projects offer a unique opportunity to develop connectivity between diverse partners. This is increasingly important as new cross media partnerships emerge. The workprogramme should support connectivity between:

•  Research centres and the IST programme (projects)

•  Research centres in Europe

•  TV players (television) and PC players (internet)

•  Interactive media players and publishing players.

3.1.5  Smaller and shorter projects

Due to the speed of development in interactive media, it is generally important that the workprogramme 2001 equally supports smaller consortia and shorter projects. Integration and adaptation work with regard to new forms of content, new business models or workflows does not necessarily require a full European consortium and a duration of 2-3 years.

3.1.6  Best practice

The workprogramme 2001 should emphasise ‘best practice’ cross media projects. Due to market developments and strong impact from the US, there is an increasing gap between advanced countries (e.g. the UK and France) and less advanced digital media markets. Best practice programmes are particularly important for SMEs and can often be more valuable than quantitative market research.

3.1.7  Accessible studies

There are a number of issues that are best addressed on a cross-European level and from an independent perspective. The workprogramme 2001 should also support market and best practice studies conducted by consultancies, research centres or law firms. A typical example is an open and accessible study on IPR issues. Socio-economic studies can provide published guidelines and bring key cross media issues to a wider community.

3.1.8  Similar topics across digital media sectors

The Cross Media Meeting identified three main categories, which share similar sub-topics. The workprogramme 2001 should therefore be open for similar topics that relate to different aspects of the digital media market.

Universal topics across digital media sectors

3.2  Recommendations – cross media content, services and business models

3.2.1  Personalisation

Personalisation remains an important issue for the area Multimedia Content and Tools. However, it is important to define the term more precisely in order to give better guidance to proposers. The cross media meeting identified the following key issues related to ‘personalisation’:

•  Tracking of user data

•  User profiling

•  One-to-one marketing systems

•  Personalised advertising

•  Regulatory aspects

•  Re-purposing of content for personalised services

•  Measurement of usage and impact on content

•  Consumer driven markets versus technology driven markets.

3.2.2  Consumer agreements

Another important research issue relates to ‘consumer agreements’. Future cross media services and in particular service revenues depend on the consumer’s consent to use his or her data for targeted advertising. Advertisers, agencies and content providers will have to develop new consumer relationships, agreements and related forms of content.