1. Alliance Case Study
Dene Schonknecht Alliance Manager, Microsoft Corporation
Dene Schonknecht – Alliance Manager, Microsoft Corporation
Daren Forsyth – Senior Business Development Manager, BBC

2. Agenda
An introduction to the BBC
An introduction to MSFT
Overview of the BBC & Microsoft Alliance
ASAP Conference take outs
Q&A

3. Who are the BBC
Publicly funded broadcaster via license fee
Aiming for universally available content across all platforms
Currently broadcasting via
Digital Satellite
Digital Terrestrial
Digital Cable
IPTV
Mobile
And… good old UHF

4. The Public Purposes of the BBC
• Sustaining citizenship and civil society
• Promoting education and learning
• Stimulating creativity and cultural excellence
• Representing the UK, its nations, regions and communities
Bringing the UK to the world and the world to the UK
In promoting its other purposes, helping to deliver to the public the benefit of emerging
communications technologies and services and, in addition, taking a leading role in the
and addition
switchover to digital television

5. How the BBC delivers its Public Purposes
The BBC’s main activities should be the promotion of its Public
Purposes th
P through the provision of output which consists of
h th i i f t t hi h i t f
information, education and entertainment, supplied by means of:
television, radio and online services;

6. BBC Online performance to date
Reach continues to grow impressively however our relationship with
impressively,
users is not that intense.
22 million broadband users in the UK
16 million users of bbc.co.uk in March 07 (broad and narrow band)
14 million users per month press red on their TV remote control
8.7
8 7 million users access our content from partner sites inc, AOL and
inc
Yahoo

7. BBC Technology Alliances to date
Microsoft
Mi ft
IBM
Google / You Tube

8. The future
Is not about a one way relationship
It’s a two way digital relationship with our audience
The BBC wants to be part of the web not just a web
web,
destination
We want to empower Britain s to engage with the BBC
Britain's
digitally
Alliances and partnering are critical to BBC’s future
BBC s

9. Microsoft in Profile
A partner for the future
• $38.8bn 2005 revenue
• $
$70.6bn total assets
• $59.9bn brand value
A partner with focus on innovation
• Microsoft’s FY06 R&D budget is ~ $7.6 Billion.
• 50% of this is focused on Media and Entertainment making it our single biggest focus.
This drives a long term, strategic approach to:
• Platforms for content creation and delivery (Digital Production)
• Non-linear broadcast platforms (Digital Distribution)
p ( g )
• New consumer end-points for experiencing media (Digital Consumption)
The only p
y partner with platforms & services that span business to
p p
consumer reach……

10. Why Microsoft?
MSN has more than 440M unique users monthly
215M active MSN Hotmail subscribers worldwide
185M active MSN Messenger subscribers worldwide
25M MSN Spaces (blogs) in use
MSN Video fed more than 11M streams of hurricane Katrina
the day after it made landfall, and more than 51 million
streams th t week
t that k
400M Office users worldwide
Worldwide PC shipments increased by 17 % last quarter
126M customers on Exchange based corporate email systems
Exchange-based
Leading Online gaming service with Xbox Live serving 2M+
customers in 24 countries
40 Million Downloads of Windows Movie Maker 2
120 Million Downloads of Windows Media Player 9 Series

11. Microsoft Platform
Products &
Microsoft Services Division
Entertainment & Kevin Johnson Mission : Develop the
Devices Division Co-president software platform and
software services delivered
Mission : Focus the over the internet
company’s efforts in
entertainment and related · Windows Client
devices and services · Windows Server
· SQL Server
· Microsoft TV
Robbie Bach · Windows Mobile · BizTalk Server
President · Xbox · Exchange
· Games · Visual Studio
· Windows Embedded · MSDN
· Connected Services · MSN
Framework · Hotmail
Microsoft Business
Division
Mission: Develop software and
services for the workplace
• Office
• Publisher
Jeff Raikes • Visio
President • Project
• Live Communications Server
• Office Live Meeting

13. Media & Entertainment Vision: Any
Content to Any Device
y
TV
IPTV
Music
Collaboration
Web/P2P
Tape
Business
Intelligence Portal
Mobile
production Workflow network
Video “on-ramp” Business Rights
Digital
“off-ramp”
Processes Mgmt
Rights
g Gaming
Content Mgmt
Metadata Management
Portable
Media
TV Print
DVD

14. BBC & MSFT Alliance
Alli
BBC & MSFT Alliance

15. What really happened?
Business Development lead was assigned on both
sides – responsible for Alliance health
Relationship moved from transactional to
collaborative
18 months of refinement
A culminating event – trans-Atlantic visit
Pen-to-paper on a Memorandum of
Understanding (September 2006)

17. Why are we doing this ?
Convergence is driving p
g g partnerships
p
Windows
PC
Analogue TV /
platform
Radio Broadcast
Next-
Next-Gen
Gaming
Digital TV
Broadcast
Consumer
Portal
Online
properties
Windows
Mobile
New Devices
broadband
channels
e.g.
e g iPlayer TV over
broadband
Digital Radio
Online
properties

18. Why did this happen?
Microsoft:
Business model built on partnership
p p
Increasing vertical focus
Desire to collaborate with a leading brand
Collision f industries
C lli i of i d t i – media meets t h l
di t technology th
through i t
h internet
t
disruption
Personal relationships

19. Why did this happen?
BBC
Proliferation of delivery platforms
Complex t h i l requirements
C l technical i t
Business process overhaul
Requirement for deep Microsoft knowledge
Long term relationship required
Unique position Microsoft is in
• PC platform distribution
• Devices – Xbox, Zune, Windows Mobile
• Live Services – MSN Messenger, Hotmail, Content Portals

20. Content Enablement Distribution & Reach Search, Navigation &
User Experience
•Digitization of tape archive •Efficient distribution
•Ingest of digital content technologies (formats, •Making “Web 2.0” real
•Metadata tagging encoding, peer enabled) •Consistent Editorial
•Index optimization Experience
•Rights management, • Joint Audiences – by • Combined technologies and
clearance & payment
l t demographic (e.g. teens) or
d hi ( t ) services for optimal user
systems platform ( MSN / Xbox) experience
Executive Review & Governance
Mutually provided Strategy Consultant resource
Joint investment in projects
Content Archive

21. Who does this involve?
BBC & MSFT Day-to-Day relationship contacts
BBC & MSFT named executive sponsors
Microsoft
UK Consulting Services,
US Product Development Teams,
UK Research & Development labs
labs,
UK Marketing and PR

22. Who does this involve
BBC
Strategy
Business Aff i
B i Affairs
Fair Trading
Production (online & linear),
( ),
Marketing,
Creative,
R&D
Innovation

23. What was the benefit?
Microsoft
Regular forum to engage with key customer executives at the
BBC (90 day review)
Ability to articulate full value that we bring – beyond the
commercial
A 1st call partner for technological collaboration
Momentum and interest from within the vertical industry

24. What was the benefit?
BBC
Regular forum to engage with key executives at Microsoft (90
day review)
Alignment of activity roadmap
Fast track innovation opportunities
Raised awareness across the BBC of business critical activity –
engaging industry
Highlighted to BBC creative's, technologists and producers what
could b possible
ld be ibl
Revealed proof of concepts from the business to jointly progress
The ability to engage in open and honest dialogue

25. Where are we today
Detailed dialogue in agreed areas
Growing resource allocation
g
2nd 90-day review upcoming
Technology and service collaboration
gy
e.g. Mix07
e.g. iPlayer launch (subject to PVT)
Alliance health-check using best practice
methodologies

26. ASAP Conference take outs
People
Innovation
Diversity
Executive Sponsorship
Communication Communication Communication
Trust
Buyer Seller partnerships are very fragile
C
Consumables and d bl
bl d durables
Be the best at alliances and more will follow

27. ASAP Conference take outs
Cisco are awesome - NVP
BT HP Alliance is amazing! g
Inventing yourself is not viable for growth
Although the BBC are beginners regards
g g g
technology alliances, with Microsoft’s
professionalism, we have made a great start

28. Finally
“An alliance with a powerful person is never
safe.”
Phaedrus quotes
q
(Roman fabulist, 15-50 B.C.)

29. Thank Y
Th k You
Daren.Forsyth@bbc.co.uk
denes@microsoft.com
denes@microsoft com

30. Q&A