Adam Hume Head of Futurology, BBC Broadcast Vice Chairman and Convenor, Business Models, TVAF

IDE San Jose Sept 20 th 2004 World Markets today Work of Business Models Group Phase 2 and Broadcasters Phase 2 and Advertisers

Buffering (putting the kids to bed) Bookmarking (never miss an episode) Grazing (record now.. Decide later) Stacking (binge on Friends) Archiving (dump to tape) Compressing (miss the boring bits) Extending (watch the goals again) Pausing (Phone… loo…) PDRs already have their own vocabulary

And the explosion in take up is close.. very close…

JAPAN

4% 6% 18% 5% VHS/DVD combo PDR PC/TV Tuner HDTV USA

Gartner G2, Jan 2004 USA

UK

Storage –medium to long term Today, the average size disc in a PC sold in the UK is 120GB In 2007 it will be 600GB+ In the UK you can upgrade a Mk1 TiVo to 130hrs for 150 Euros Windows Media Centres have 100+ hrs as standard iPods store more than most people’s entire CD collections Molecular computing, biological computing (Bacteriorhodopsin), quantum tunnelling, lithium niobate holographic memory (2TB per crystal!) and carbon nanotube technology

 There ’ s less of a concept of peak time  Fewer “ water-cooler ” moments Off peak hours have greater value More viewing of series  Fewer ads (promos) are seen But some recall as they FF Watch good adverts more Research tells us ….

What are we doing for Phase 2 Working on making advertising work harder in a DVR – new exciting advertising models that allow commercials to be updated, extended and targeted. Allowing consumers to share content in the home, and – where they have the rights - outside the home. Capture of richer content propositions – interactive content, packages of content.

Scenario Building The Business Models group predicts likely scenarios for PDR use. These then feed into the Systems and Metadata groups to decide on the technologies required. Phase 2 has 58 key scenarios For example ….

Scenario Building Example Scenario: Capturing all elements of package A package contains applications, data, video and dynamic audio files. The viewer requests this service package from a unidirectional broadcaster. The various elements are captured when they are available during the first two days in the broadcast stream but there are several audio files that are not available until the following day. The package is not playable until the final audio files arrive.

Scenario Building Example Scenario Telescoping of content while in pause A consumer is watching content which could be recorded or live, It has an associated long form spot which is already on the PDR. An on screen alert tells them it is available to watch so they pause the programme, watches the long form spot, orders a catalogue using an associated interactive application, and then return to the content where they left it.

Scenario Building Example : Scenario consumer pull for specific products services A consumer is going to buy a car in the next 2 months. They ask for all car commercials for a particular kind or range (eg SUV) to be recorded so they can watch them and make a purchasing decision.

Scenario Building Example Scenario: Un-attributable usage data A consumer watches a stored programme and the TVA device notifies the provider of that programme that it has been viewed in such a way that the consumer cannot be uniquely identified. However the report may include demographic information, when it was watched and whether any trick play was done. This functionality can also be used for the reporting of interstitial content viewing.

Broadcasters 1. Create new programming propositions, e.g. Packaging 2. Consumer generated content 3. Content updating (eg news) 4. maximise use of airtime

The advertiser’s best friend

As PDRs establish themselves, some facts are becoming less disputable. Few can now question that they will find a place in a many households – a relatively safe prediction for the UK seems to be 40%- 50% of homes by the end of this decade…. it is simply a matter of time before significant PDR uptake causes reaction from clients and agencies. Tom Johnson, digital futures director at Mediaedge

Agencies will have to change, simply because consumers will change and advertising clients will demand it. And when this change takes place, there will be a real chance to create world in which advertising offers clients consistently relevant, compelling and effective communications through their PDR. It is the chance to create our very own primetime. Tom Johnson, digital futures director at Mediaedge

The Biggest opportunities ever presented to the Television Advertising Industry are the Pause Button and the ability gain truly 1 to 1 messages. With the ability of the consumer to pause the show, we can add the concept of depth and duration to the basic foundation of TV Advertising. With the ability to understand consumer behaviour in their TV and Radio consumption we can ensure that every message they see is relevant We just need to learn how to think outside the advertising break and learn to take advantage of this potential

Advertisers Working on making advertising work harder in a PDR – new and exciting advertising models that allow commercials to be updated, extended and targeted.

1) Methods of describing which ads(s)/promo(s) are shown 2) Acquisition of alternative content, before or on demand 3) Updating of interstitials, and other lifetime issues 4) Telescoping and interactive content Other non-technical issues to be resolved …… 1) Who owns the content ~(including ads) on the device 2) Unrequested capture of content onto a user-owned device…. does it require user interaction? Advertising in Phase 2

Phase 2 work … Published Requirements Document RQ001vs2.1 Work with Systems and Metadata to confirm requirements are met Publish final Phase 2 specification document with ETSI

Phase 2 work … This meeting: Publish SP001vs2 as provisional Sydney Nov: Freeze Technical requirements (inputs) Jan 05/March 05: Finish work on spec June 05: Publish Phase 2

TV Anytime is not just about TV!

The future home of the future Networks Provider PDR service providers content providers In-home Network Gateway In-home Network removable media Gateway storage NDR Provider PDR DVD control/content control Networks

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