The document discusses the transformation of the TV landscape due to technological advancements that have democratized content distribution, allowing various players to engage in content production outside traditional broadcasting. It emphasizes the need for broadcast TV to adapt by creating strong umbrella brands that resonate with consumers across digital platforms, as well as focusing on proprietary content to monetize effectively. Acknowledging the shift towards a connected and competitive media environment, the document highlights the importance of audience understanding and content differentiation in maintaining relevance.

1. Brands and Content Production Adding value in a changing TV landscape Madrid, Fall 2009

2. Agenda – key message. Advances in technology changed the way we consume audio-visual content dramatically. Conversion manifests itself in content form and distribution. Multiple devices are now capable of reproducing audio-visual content and therefore take away the broadcasts monopoly over distribution. This trend benefits other players that produce content but did not historically distribute audio-visual content. The TV-screen becomes a more open and equal playing field. In order to continue to flourish in the new environment, broadcast TV has to engage in the development of strong umbrella brands that accompany consumers in their digital life. The production of proprietary content becomes paramount as it allows for monetization across all platforms.

3. Technology changed everything 0101010101010101010101011101101010101 0 0011010101010101011010110101010101101011 CONVERGENCE 0101010101010101010101010100001011001010101010001111001010101010101010101010 Manage scarcity Manage abundance Scheduling / Programming Broadcasting / Distribution Media content broke out of its container. Power over distribution is lost. Content converges and is now displayed on multiple screens. Ubiquity of content, universally accessible. Consumers increasingly in control.

4. Convergence leads to a new kind of competition Multimedia ad-market is a green field for many potential players. Connected world allows aggregation of large audiences to many other competitors. Anyone suffering from declining physical ( media ) sales, will try to plant a flag in this area. Any digital content that can be displayed in audio visual form will f ind its way to the big screen. And with it advertising. The spot is no longer property of broadcast TV. Content convergence Distribution convergence

5. ...as shelf-space for audio-visual content increases Position your content brand as a unique value proposition to a specific target group. The content topic itself become less a differentiating factor. Your brand has to have a meaning beyond broadcast TV. The brand has to be relevant for your audiences entire digital life. TV TV TV TV Cable / PayTV TV TV TV

6. Content owners will capture the big screen. Attention is increasingly important. Content exists in abundance. Good content will get attention, which in turn can be monetized. Advertising works best in a audio visual context. TV = crowded space. Print and other media will try to get into the audio-visual space. News, Sports and other themes covered by big non- TV brands will soon make their TV appearance. Advertising works better in a audio-visual environment.

7. ...from print media. According to research from Brightcove video platform, online newspapers grow rapidly into video content (US data). +1500% in uploads (08 vs. 07) + 365% in reader streams (08 vs. 07) The New York Times works on a 3-4 screen information experience. News are important to broadcast stations.

8. ...from the music industry Music streaming service soon on TV sets as an application. Ability to show audio and video ads. High rating among 16-34y old males in Sweden and rest of Europe Future MTV on demand? Live Events per stream. Content sells less, experience more.

9. ...new platforms and aggregators. TV was yesterday, the new name is “the big screen device” Network cable vs. aerial cable. Content platforms emerge around devices. Wi-Fi is next and will take away some usability barriers. Broadcast / Cable

10. ...from consumer electronics Device manufacturers gain power over distribution. Run for home screen presence has started. Remember Google page ranks? Revenue share a new reality?

11. The 3/4 screen model mastered. Business of selling hardware vs. business of selling content. If this model becomes successful, content is the oil in the gearbox. Ultimate user experience. How valuable is your content brand? Content / Brand

12. ...from game consoles. Nintendo DS and Sony PSP are multimedia devices. Reproducing games, music, video and books. Roughly 200m units shipped worldwide. Mobile TV as download or stream? Wireless access to content.

13. ...from hardware manufacturers. It’s a question on how good the remote will be. The rest is easy to figure out. Without content, these devices are worth half. 27inch LED /16:9

14. And of course the smartphone front. Computer in the palm of your hand. Application model very successful. Dependence on platform owners approval of content.

15. A st r ong umbrella brand becomes indispensable. Aggregation Platform Hardware Platform It is unclear which model will succeed. (aggregation or hardware model) In any case, your brand needs to be a door to your content. How many meaningful doors can you implement? Every door opens a new door. Target audience Limited space available

16. Channel orientation becomes important. Importance of client orientation in new competitive landscape. News, Sports, Children soon face huge competition from non TV. A client focus such as young adults, mature females etc. fulfill aggregation functions and bundle content that can be exploited in a cross-media and cross-platform world. Young Adults Females Children Sports News Fiction Politics Music Household DTT channels Target Orientation Client Product Spain

17. In the new world clients matter, not topics. Client centric = multimedia thinking. Product centric = TV broadcast thinking. Example of Sport Sports Males 16-36 Sports within new brand (not exclusive) Open to any theme . Flexible Orientation Competition Product Client

18. Invest in new value added activities Own productions allow you to take advantage of the whole audio-visual spectrum. Create content that is associated with your umbrella brand. Data is key. Understand your audience across platforms. Think of new possibilities. Blogs, Events, Merchandising Your new promise to advertisers is your audience knowledge. Data aggregation / CRM High value added Low value added Own Production Branding / Platform management Content sourcing Programming / Scheduling Broadcast / Distribution IP / Rights Orientation / Filter Knowledge / Data

19. The brand at the core, some ideas for revenue New channel brand (male oriented) Blog ads subs Catch - up free premium Events tickets syndication Mobile premium free ads

20. The nutshell In a connected world of digital content, distribution alone is not a business model anymore. Content is now digital and displayed on screens, which allows any content producer to embed video based advertising. Broadcast TV has no authority over our TV-sets anymore. Hardware connected or aggregation based platforms distribute content to a series of devices. St r ong umbrella brands with a given association to content offer c ontext and orientation to consumers. They are needed because space on “home screen storefronts” is limited and attention from your audience hard to get. The middleman function (distribution of content you don’t own) work less for broadcast TV, hence own production becomes more important. THANK YOU!