PERFORMERS’ RIGHTS IN TODAY’S EUROPEAN ENVIRONMENT:HOW TO ADAPT EXISTING RIGHTS TO NEW USES OF PERFORMANCES?

Panel Discussion 1 – Webcasting, streaming, downloading….how does daily Internet use impact on the development of cultural content?

18 – 19 November 2010

James Lancaster, Head of Rights and Business Affairs, BBC

Vision

2

27%

16%

16%

8%

6%

6%

5%

3%

1%

Nothing / don't know

Extend 7-day window

Greater choice ofprogrammes

Improve playbackquality

Make it easier touse/navigate

Include older BBCseries

Make it faster

Include sport

Include movies

Respondents were asked “If you could do one thing to change the BBC iPlayer, what would it be?”

Technologies such as iPlayer have led the way in on-demand delivery of legitimate content services but audiences want more choice

0

50

100

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350

400

25 D

ec03

Jan

12 Ja

n21

Jan

30 Ja

n08

Feb

17 Fe

b26

Feb

06 M

ar15

Mar

24 M

ar02

Apr

11 Ap

r20

Apr

29 Ap

r08

May

17 M

ay26

May

04 Ju

n13

Jun

22 Ju

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Jul

10 Ju

l19

Jul

28 Ju

l06

Aug

15 Au

g24

Aug

02 Se

p11

Sep

20 Se

p29

Sep

08 O

ct17

Oct

26 O

ct04

Nov

13 N

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ec28

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06 Ja

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24 Ja

n02

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11 Fe

b20

Feb

01 M

ar10

Mar

Daily

requ

ests

(000

s)

Total for 25th Dec 07 – 15th Mar 09368 million requests

Jan Feb Mar Apr May Jun JulDec 25-31

34.5

Jan

35.7

Feb

35.1

Nov

30.6

Oct

107m

Q4

41.0

Dec

64m

Q3

22.8

Sep

21.2

Aug

20.3

Jul

63m

Q2

20.4

Jun

21.921.017.214.011.2

MayAprMarFebJan

42m

Q1

34.5

Jan

35.7

Feb

35.1

Nov

30.6

Oct

107m

Q4

41.0

Dec

64m

Q3

22.8

Sep

21.2

Aug

20.3

Jul

63m

Q2

20.4

Jun

21.921.017.214.011.2

MayAprMarFebJan

42m

Q1

Total requests for streams and downloads

(millions, calendar months):

Aug Sep Oct Nov Dec Jan Feb Mar

Vision

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Pace of change accelerating for audience

Media & platform convergence Acceleration in product and service innovation driven by:

–Increased processing power and storage capacity, improved display technologies and the move to digital storage and transmission

–Convergence of devices with communications services, applications and audiovisual content in combination

200820001995199019801960Pre 1900-1940

Audio/voice communication

Moving im

age

com

putin

gga

mes

& g

amin

g

Time

Inte

rac

tiv

ity

Source: Adapted from Gary Hayes, Oliver & Ohlbaum

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IPTV platforms will throw up even more opportunity and challenge

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Media consumption in the UK - Although linear still dominates, web usage is growing very fast

Hours per day (now) TV: 4 Hours Radio: 3 Hours Web: 0.6 Hours

UK Media consumption trends - Index 2004 -2012

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iPlayer usage continues to grow

16.1 18.426.8 23.6 25.4 24.7 25.7 25.5 26.5 26.1 29.3 28.2 32.3 29.9 33.3 30.4 32.7 30.6 27.3 28.1

30.836.0

36.7 37.2 39.1 36.544.9 43.3 44.5

53.259.6 65.2

68.2 68.7 67.0 73.477.0

69.667.9 70.1

14.714.1

14.8 15.316.2

14.8

16.7 15.8 16.3

18.1

18.520.8

19.8 17.8 17.319.6

20.2

16.719.0

20.5

6269

78 7681

76

87 85 87

97

107114

120116 118

123130

117 114119

Jan 0

9

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec

Jan 1

0

Feb

Mar

Apr

May

Jun

Jul

Aug

Virgin Media BBC iPlayer TV requests

Online BBC iPlayer TV requests

Online BBC iPlayer radio requests

Mill

ions

of

req

uest

s

In total the BBC iPlayer increased to 119 million requests for programmes across all platforms in August 2010, including both online platforms and devices and BBC iPlayer on Virgin Media TV.

Confidential & Commercially Sensitive – Not for onward distribution

7

On-demand is predicted to grow to 20% of all viewing by 2012

Source: Oliver and Ohlbaum

89%80%

74%

4%

6%

8%

3%6%

8%

3% 6% 8%

1% 1% 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2012 2016

Linear PVR Vosdal PVR Not Vosdal VOD catchup VOD archive

UK Television Viewing by window and technology – 2009 - 2016

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Younger audiences are consuming less linear TV

10

12

14

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22

24

26

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

Source: Digital Homes Project analysis of BARB data/BARB/TRP. Ref: SR0023.All data based on BARB Q4 1995 to Q4 2008 with the exception of the latest data point which is Q3 2009. Total Television, whole day, Mon-Sun.

Born in the1960s &1970s

Born in1990

(Age 19)

Born in1985

(Age 24)

Born in1995

(Age 14)

A similar picture is emerging in Radio according to recent “Share of Ear” research

Total TV Consumption as viewers age

Hrs/week

Age

9

10

11

12

Latest version of iPlayer is designed to address changing audience consumption patterns

Personalisation toolsPersonalisation tools

Social mediaSocial media

Better search and ‘de-duped’ navigation

Better search and ‘de-duped’ navigation

Better brandingBetter branding

Better ‘live’Better ‘live’

Better editorialised choicesBetter editorialised choices

13

The BBC’s Archive strategy

Archive Vision:

“The BBC should set a course, through the end of this Charter period and well into the next, to deliver a radical transformation in the public's ability to search, discover and access the library of content which their licence fees paid to be created. This would by definition be an incremental, long-term project, and be based on a strategic mix of public and commercial activities, with strong partnerships in both sectors.

The BBC would be guided by a belief that British culture and creativity should be as accessible as possible, both in the UK and in the global digital economy, and would be committed to partnering with others to achieve this.”

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BBC Wildlife Finder (www.bbc.co.uk/wildlifefinder)

Vision

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Commercial Archive strategy will continue to be delivered through multiple routes

Over 3,000 hours of content available commercially on-demand right nowConfidential & Commercially Sensitive – Not for onward distribution

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The BBC is a major rights holder and creator of intellectual property

• It is vital to protect the rights of creators

• This will sustain the incentive and the means for creativity to thrive

Strong copyright protection Straightforward access

The BBC is a major user of rights• It is vital to have efficient and cost

effective systems in place to enable access to rights

• This will foster dissemination of creative ideas

The BBC believes a copyright system fit for the digital world would balance strong copyright protection and straightforward access to copyright material

We need a simple platform-neutral solution underpinned by legislation where appropriate – without this we risk in particular losing the drive behind the release of

archive value and miss the opportunity to create a rich cultural resource of UK originated content

Developing a copyright system for the digital world

Vision