1. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 The Anatomy of a Perfect Relationship Bruce Vandenberg Director of Interactive Media

2. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 What is a “Perfect Relationship”? The complementary interaction of two or more technologies in delivering a seamless experience to end users by utilising their independent strengths to overcome the other’s weaknesses

3. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 Assumptions We are talking about Mobile’s role in enhancing the Television experience I am specifically addressing the possibilities of a perfect relationship with mass market light entertainment TV shows I am not addressing the substantial possibilities that Mobile brings in terms of the stand alone delivery of entertainment content to the end user

4. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 How is the World of Television Changing?

5. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 Move towards Analogue Switch-Off Mandated by European Governments DTH switched completely from Analogue to Digital by end 2001 and grew to 20m in 2003 Rapid growth in some territories for DTT – UK Freeview approaching 3m homes Pay TV adoption is driving fragmentation in the marketplace – more than 100 new channels in Europe every year, currently more than 1200

6. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 What does this mean? TV is becoming so much more about consumer choice New business models are driving the need for broadcasters / platform owners to differentiate themselves in more ways than programming This experimentation is driving a consumer adoption and education process

7. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 Creation of Global TV Brands Large scale high production quality programmes have lead to the creation of strong global TV brands – WWTBAM – more than 1B viewers in 106 countries. – Pop Idol – 29 countries, over 300m viewers – Big Brother – 22 countries

8. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 TV as a driver for Adoption WWTBAM – globally caused people to pick up the telephone and call in to be on a show MTV Select – first use of SMS to drive consumer choice Big Brother – First mass market live reality TV show to induce people to vote by SMS American Idol – widely regarded as a key driver for the adoption of SMS in the USA

9. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 Adoption of Interactivity End Users have adopted early forms of interactivity Just about every programme has some sort of vote, poll or text to screen application More than 230 iTV channels across Europe with more than 50% focused on Enhanced TV Applications Applications and Services still very basic

10. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 Other Factors Move towards greater integration of Consumer Brands – Proctor and Gamble – created Soap Operas – Proctor and Gamble – creating their own TV programmes The effect of technological convergence…every player wants to communicate with and bill the end user

11. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 How are other Technologies Changing? Internet continues its growth in household penetration Broadband is expanding rapidly, often with substantial government support Forecast Broadband penetration by 2008 to be in excess of 70m households BT launching the Blue Phone in the home

12. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 How is the Mobile World Changing?

13. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 Mass Adoption Virtually every phone is capable of SMS MMS phones and usage growing rapidly GPRS growing rapidly Mobile Data Association reports that take up of both MMS and Data services growing faster than SMS on a like for like basis The Mobile Internet is coming and it will be Broadband

14. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 Technological Developments Java means ability to run programmes on the phones – becomes an intelligent device (Smart Phones) GPRS – 3G means high speed connections WiFi integration into the handset brings even higher speeds of connectivity DVBH and DAB capabilities bring ability to broadcast data directly to the handset

15. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 Key Drivers in Creative Process All about the creative concept, does it make good telly? Don’t alienate the passive viewer (80% or more of the audience) Interactivity must be integrated and make sense Choice of platform must be appropriate to both editorial and commercial objectives

16. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 State of the Platforms – U.K. PlatformUsability and Attractiveness Suitability and Quality of Service Fixed Line Telephony Extremely Limited Excellent Mobile TelephonySMS – Average Java – Good Today – Poor Tomorrow - Excellent InternetGoodExcellent Interactive TVExcellentExtremely limited

17. Bruce Vandenberg - Director of Interactive Media - Confidential - © Celador International 2004 The Perfect relationship Seamless integration of entertaining television experiences that are extend across platforms that offer real-time mass participation and involvement. Smart phones with fast processing power, large amounts of memory and high speed connections will win the day.