PSB content anywhere at anytime!

Do We have the Guts to Enter the Proper On-demand World?

Or Are We Satisfied to Be in Its Periphery?

Nordic PSB Conference, workshop (distribution) introduction Copenhagen 9.2.2007

Ismo SilvoYLE

2

Social platforms• Netscape, YouTube, MySpace

On-demand platforms and tools enable new services:towards enhanced social networking and virtual worlds

Search engines• Yahoo!, MSN Search,

Google

Browsers• Firefox, Explorer, Opera

Communication tools• E-mail, Skype; P2P

WWW

Proprietary-platforms• AOL; IPTV

Newenlargingusesand applications

IT-networks

Web-TV• Joost

Virtual worlds (?)• Second Life

3

New business models in the internet are developed portals

1.Generation”Traditional” portals

2. GenerationSearch machines

3. GenerationCommunities

X. GenerationVirtual worlds

Examples NetscapeIPTV

Yahoo!Google

FlikrMySpace / YouTubeSkypeTV

GoogleEarthSecond Life

Services to the end user

Links and structuration

User´s enhanced capacity to find existing contents

Users´s capacity to produce and structure content self

Continuation of real life in virtual worlds

Earning Market placeBannersTraffic

Search based – targeted advertising

User profiled advertising

Same earning models as in the real worlds

Content generation

Content managed and structured by the portal owners

Content profiled and structured by searches

Content profiled, produced and structured by users

4

Media services and social networking services grow strongly in the internet

10,0 10,3

2006 2012

News services TV viewing On-demand video

Radio listening Recordings

GamesSearch services and classification

Youtube and other videosharing services

0,8

14,0

2006 2012

1,1

13,5

2006 2012

1,5

5,5

2006 2012

1,4

6,7

2006 2012

1,33,1

2006 2012

17,2

22,7

2006 2012

3,3

8,2

2006 2012Social networking (e.g. IRC)

7,1

14,0

2006 2012

Internet usage per service type (1)

1. Excl e-mail and ”other internet use”Sources: TNSMetrix , IRC-Galleria, Finnish Statitical Centre, NAG

Chat

3,05,3

2006 2012

5

Use of traditional media content increases most in internet

25 %

18 %

18 %

28 %

11 %Traditional media

Social networking (inc. Youtube)

E-mail and chat

Search portals and encyclopedias

Other internet

38 %

20 %

14 %

20 %

8 %Other internet

Trad. media

Social networking (inc. Youtube)

E-mail and chat

2006

How internet users (1) use internet services, 100% = 69

min / day

2012

How internet users (1) use internet services, 100% = 120 min / day

1. Internet users = 65% of Finns, 2006,Sources: TNSMetrix, IRC-Galleria, Finnish Statistical Centre, NAG

Search portals and encyclopedias

6

Observations

About 75% of Finnish internet use is international service sites (e.g. Google.fi), dominance of the international

The young use increasingly internet and TV simultaneously Among young men the internet is the most favoured medium -

15–24 year old men use the internet 107 min and TV 99 min / day.

The popular community site IRC-Galleria.net is the most active internet community in the world – measured by usage per day per registered member

7

Social networking services grow fastest everywhere

5 000 22 00050 000

130 000

240 000

400 000

2001 2002 2003 2004 2005 2006

Registered members of IRC-Galleria.net in Finland 2001-2006

2004 2005 2006 20070

50

100

2

131

Registered users of MySpace 2004-2006, milj.

CAGR >300%CAGR >100%

Sources: Dynamoid (IRC-Galleria), MySpace, NAG

8

User profile of social networking services grows gradually older

Registered users of IRC-Galleria.net, 2001-2006

0

10000

20000

30000

40000

12

15

20

25

30

35

40

2001

2002

2003

2004

2005

2006

Lähde: Dynamoid (IRC-Galleria), lehdistötiedotteet, NAG analyysi

age

Users

Size of the age cohort

60000

9

Future distribution Case: Global net-TV: Skype´s founders have launched a new global net-TV

”Global distribution concept of the traditional TV channels”

• HDTV quality

• Possibility to personalize channel packages and interact in a community

• Peer-to-peer technology – community of tens of millions of computers

• Advertising financed– global actor takes its share of adverts

Joost

Internat. TV-comp.

Indiv.producers

NationalTV-comp.

Entertainm.business

Globalclient

Global

clientGlobalclient

Global client

Channel packet A Channel packet B

Source: Financial Times 18.12.2006, NAG

10

On demand world consists of the converged services and of the new core-services

Communication services Media

Dealings/commerce

eBay / Auctions

3/4 -play

e-commerce / Amazon

Net-TvÖppet arkiv

YouTube

MySpace

VoIPMessengerVideo-conferenceChat

VoD

Blogs

IPTV

Public civil services

On-demand worlds core-services: uniting networking-media-dealings

On-demand worlds periphery

Traditional media on internet

11

L-curve: occurs in global and local services of all scales

0

10

20

30

40

1. 20. 40. 60. 80. 100.

Specialized blogs, readers per day per blog, in order of popularity (1.)

1. Categories: Arts, Automobiles, Health, Finance, Food & Drinks, Pets, Religion, TravelSources: Youtube, Blog Top Sites, NAG

1. 500 000. 1 milj.

Viewing in YouTube,milj.viewers per title

Milj 1 000´s

0

10

20

30

40

12

In the on-demand world the role of premium content is overwhelming

Top 1%

30% of use

- 75% value

Rest 99%

70% use

- value is low

Disappearance of national markets

Possibility to chose ”borderlessly” leads to the dominance of prime content

Financial importance of prime content grows

L-curve of the demand

Value

Use

Challenge and the question

14

Challenge of tomorrows distribution, and a question:

In the on-demand world media and community services converge. Global players increase their access to an individual global client.

PSB companies have seemingly good possibilities and strengths to meet this challenge: attractive content, a good trusted brand.

But do we have a determined will to enter into the core-area of the on-demand world?

Or are we satisfied to stay on the edges of it? Do we properly understand the service concepts and ethics of social networking sites?

YLE´s proposition: more content with the license fee.

YLE 2.0

”YLE Areena” (net-TV, net-radio, Living archive) –

16

YLE 2.0

Web 2.0: more effective communication power and more pluralistic content provision

Social Networking case LinkedIn, IRC-galleria, MSN Spaces Blogs, Vlogs (videoblogs), Slogs (”spämmblogs”) Tagging case Yahoo: social search engine Myweb 2.0 Podcasting, Vodcasting, Voicecasting, Mobilecasting, MMS

podcast RSS Video Search case YouTube User generated content

YLE: X-Stage, X3M, Living archive, News… Strong win-win-partnersips with aggregating services

(Google, Microsoft…) Strong win-win-links with user communities Integration of YLE content to these net-environments,

networking through contents Dedmands enhanced presence of the YLE content producers

in the net and in the net communities

17

The NEW YLE.FI – from support media to a genuine platform based on internet loyal user-motives

Genres

Channels

ChannelsAudio and video

contents;archives

Content areas

News

Sports

Svenska

Children

Learning

Internet

Mobile

Ne

t-T

V &

ra

dio

IPT

V

Until now

04 / 07

18

YLE AreenaOpens 04/2007

YLE Areena

Target:All YLE programmes in internet

Streaming and on-demand Living Archive Mobile and IPTV -versions YLE Shop –download sales