HOW TO FOSTER EUROPEAN WORKS IN NON-LINEAR SERVICES? PART 1 - REPORT FROM POLAND Kamil Przełecki (Poland) KIPA Producer AGORA SA Director of multimedia convergence and development POLAND

NEW MEDIA OVERVIEW POLISH MARKET 17 M Internauts (at least once a month using Internet) / 38 M population / 11 M use Internet everyday Internet is the 3rd medium (advertisement market) after TV and Magazines Poland is the 8th biggest Internet market in Europe 3 main TV stations / 4 mainstream channels (> 15% share); over 100 sat and cable channels 5 main cable TV operators (> 300 k) 5 main Internet portals (> 12 M users) 3 TV digital platforms REPORT FROM POLAND MARKET OVERVIEW

VOD SERVICES MAIN PLAYERS Digital Platforms (Cyfrowy Polsat Cyfra +, n,) Cable TV Operators (Aster, Multimedia, Vectra, UPC) IPTV / ISP – Telekomunikacja Polska – „Wideostrada” 7 main legal Internet VOD services with different business models Pirates  4 mobile operators (116% of penetration) – development phase Game console networks - ??? REPORT FROM POLAND VOD SERVICES

WHO OWNS INTERNET VOD? MAIN INTERNET VOD PLAYERS LEGAL CONTENT June 2010 TVP.pl - TVP SA - Polish Public TelevisionA,T Vod.onet.pl- TVN SA - Commercial TV & Portal (Media Company)A,T,S IPLA.pl- POLSAT SA - Commercial TVA,T Waszefilmy - SPI – movie distributor / supported by Portal A Cineman.pl- Monolith –movie distributor T Iplex- private capital companyA (T) TV Screen- private capital companyT Multimopleks- private capital companyT Netino.pl- private capital company (first VOD service in Poland ‘2006)T REPORT FROM POLAND VOD SERVICES T-VODtransactional S-VODsubscription A-VODadvertisement

WHAT CONTENT? MAIN PLAYERS WHAT? Movies (mainly US) Documentaries tv programs (tv Polish) Series (tv Polish) Sports (licensed) HOW? rent for free (ads) or charge (from €0,80 to €3,00) up to 300 items per service bitrate from 500 kbs to 1,5 Mbs (SVHS quality) / 1 GB per movie, cost circa €0,08 Instant watch or download REPORT FROM POLAND VOD SERVICES T-VODtransactional S-VODsubscription A-VODadvertisment

WHO WATCH IT? MAIN PLAYERS AVARAGE PER SERVICE (TOP 3) / PER MONTH from to UU (unique users) per month usually people from big cities > 25+ over impressions (played videos – started) only from Poland – geo lock filtering system REPORT FROM POLAND VOD SERVICES T-VODtransactional S-VODsubscription A-VODadvertisment

WHAT MATTERS? INTERNET VOD FOR USER For free (!) - pirates give no chances for charging Good content Smart technology (users don’t like DRMs) Wide database – even niches If something is not present on TV / RENTAL / CINEMA –> could be found („browsed” / „googled”) on the WEB FOR PROVIDER Traffic (data distribution) cost (€0,08 / GB) Promotion (services are supported by media companies) Financial support (US production have high level of MG for licenses) REPORT FROM POLAND VOD SERVICES T-VODtransactional S-VODsubscription A-VODadvertisment

HOW TO FOSTER EUROPEAN WORKS IN NON-LINEAR SERVICES? PART 2 – QUESTIONS, PROBLEMS AND SOLUTIONS Kamil Przełecki (Poland) KIPA Producer AGORA SA Director of multimedia convergence and development VOD / European WOrks

OUR PROBLEMS: > NO SPACE ON TV’S AND CINEMAS’ SCREENS - AMERICAN BLOCKBASTERS RULEZ!! (MULTIPLEX CINEMAS SHOW MOVIES FOR FEW WEEKS ONLY) > NO TIME IN A PRIME TIME ZONE (EUROPEN PRODUCTIONS ARE BROADCASTED USUALLY AFTER 11 p.m) > LANGUAGE BARRIER > TRADITIONAL DISTRIBUTION IS EXPENSIVE (35mm copy cost >1000 Euro) (ART-HOUSES AND DIGITAL CINEMA HELP) > PROMOTION > PIRACY (YOU CAN NOT FIGHT THE PIRACY – YOU CAN ONLY OFFER A LEGAL ALTERNATIVE) OUR PROBLEMS: > NO SPACE ON TV’S AND CINEMAS’ SCREENS - AMERICAN BLOCKBASTERS RULEZ!! (MULTIPLEX CINEMAS SHOW MOVIES FOR FEW WEEKS ONLY) > NO TIME IN A PRIME TIME ZONE (EUROPEN PRODUCTIONS ARE BROADCASTED USUALLY AFTER 11 p.m) > LANGUAGE BARRIER > TRADITIONAL DISTRIBUTION IS EXPENSIVE (35mm copy cost >1000 Euro) (ART-HOUSES AND DIGITAL CINEMA HELP) > PROMOTION > PIRACY (YOU CAN NOT FIGHT THE PIRACY – YOU CAN ONLY OFFER A LEGAL ALTERNATIVE) VOD / European Works

% OF WHAT? Time / Assets – Titles / Giga bytes/ Auto promotion space? WHICH MEASURE SYSTEM VOD / European WOrks You can have 100 hours of EU movies on the service, and only 3 hours of US movies, and… … only 3 hours of US movies will be watched! WHY? IT DEPENDS ON THE HIGHLIGHTS PROMOTION AREA

SELF-REGULATION > NO MG’S FOR PRODUCERS > A-VOD PROMOTION & SHARE REVENUES > VOD SERVICES WILL PROMOTE FREE CONTENT > VOD SERVICES WILL SHARE REVENUES FROM ADS > INTERNET HAS NO LIMITATIONS SELF-REGULATION > NO MG’S FOR PRODUCERS > A-VOD PROMOTION & SHARE REVENUES > VOD SERVICES WILL PROMOTE FREE CONTENT > VOD SERVICES WILL SHARE REVENUES FROM ADS > INTERNET HAS NO LIMITATIONS VOD / European Works > NEEDED FINANCIAL SUPPORT FOR TRANSLATIONS > NEEDED FINANCIAL SUPPORT FOR TRANSLATIONS ADVANTAGE: > US MAJOR STUDIOS DON’T WANT TO LICENCE IN A-VOD MODEL > THEY PREFERE T-VOD & S-VOD

WHAT DOES MATTERS? 1) TO FOSTER TO GET REVENUES? OR 2) TO FOSTER TO PRESERVE AND PROMOTE A CULTURE? (EUROPEAN CULTURAL DIVERSITY) WHAT DOES MATTERS? 1) TO FOSTER TO GET REVENUES? OR 2) TO FOSTER TO PRESERVE AND PROMOTE A CULTURE? (EUROPEAN CULTURAL DIVERSITY) VOD / European Works IF 1: POSSIBLE IN A-VOD SHARE REVENUE MODEL ( circa 30%-50%) IF 2: INTERNET VOD IS THE BEST MEDIUM TO DO THAT - creating niches and archives of great European movies - providing additional informations (as WIKI database) - Ad sense promoting system in SEO GOAL: to educate young generation in a smart way

LET’S DO THAT! LET’S DO THAT! Kamil Przełecki (Poland) KIPA Producer AGORA SA Director of multimedia convergence and development POLAND