CANOLFAN MATERION CYFREITHIOL CYMREIG: YR
8FED DDARLITH FLYNYDDOL
Jason Chess, Partner, Wiggin LLP
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Tonight
A.
THE ESSENTIAL BACKGROUND: DIGITISATION and
CONVERGENCE – the transformation of the media
industry
B.
BROADCASTING IN WALES – Current provision
C.
THE FUTURE – Will the cataclysm of change in the
media allow Wales to retain a media personality
in either language?
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Who Am I?
• Born Porthcawl, educated Porthcawl Comprehensive School and University
College, Oxford
• Read English (MA 1986) and Mediaeval Languages (MPhil, 1990)
• Specialised in the religious verse of the Gogynfeirdd and the palaeography and
transmission of Celtic manuscripts to Saxon Wessex.
• Partner at No. 1 specialist media law firm Wiggin LLP. Advise a range of media
clients including ITV, Channel 4, Five, BT, S4C, Granada, Virgin Media, UKTV,
Discovery, Al Jazeera (Arabic and English), HBO, Setanta, Emap Plc, Conde
Nast, Hearst Corp.
• Recent work = BBC/ITV/C4 Public Service VOD JV announced this week.
• Negotiated and established Astra 2A digital satellite transmission chain for S4C
in 1998
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Come on the journey…
Lle’r ei di Twn Pen Ceunant
Lle’r ei di ar draws y byd
A’r Sioned bron a hollti
A’i hwyliau’n garpiau gyd?
Where go you, Twn Pen Ceunant
Where go you across the seas
And the Sioned almost broken
Sails ragged in the breeze?
Yn ol i’r Felinheli
Rwy’n mynd co bach, ho,ho,
Ym morio am fy mywyd
Saith mis o Callao…
Back to Felinheli
I’m going, my lad, ho, ho
Sailing like a maniac
Seven months from Callao
Ynys yr Hud, (W.J. Gruffydd); Euryn Ogwen Williams: “Byw
ynghanol chwyldro”, Darlith Cymru Heddiw, Eisteddfod
Genedlaethol Bro Ogwr, 1998
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Part One: What is “the Media” and
why is it changing at present??
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1982: Analogue Television Broadcasting
Analogue
Terrestrial
Television
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Television
•
•
•
•
BBC 1
BBC2
ITV
Channel 4/S4C
Analogue Terrestrial Television
Production
BT Distribution
Network
What is ATT?
•Broadcast from 1154 sites UK Wide
• 211 sites in Wales – Moel-y-Parc,
Wenvoe
•4 or 5 television services with
‘universal coverage’
•Wasteful of capacity
•Only able to broadcast a small number
of national channels
•DSO process to be completed in 2012
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1154 Transmitter
Sites
Broadcasting Platforms 1990
Analogue
Terrestrial
Television
Analogue
Cable
Television
Analogue
Satellite
Television
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Television
Cable Television
Enc1
Enc2
Real Time TV services
Content “on-demand” servers
MUX
QAM
Modulator
ATM
Distribution
Network
What is Cable Television?
•2 UK operators – ntl and Telewest – now merged
into Virgin Media
•Limited geographic availability
•Virgin – Cardiff and Swansea
•A closed network requiring subscription
•Provides digital video and audio
•Provides NVOD / VOD, internet access &
telephony
•Every television requires an STB
•Requires installation of a coax feed to the
home
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Local Node
(HFC)
Cable link to the home
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Direct to Home Satellite Television
Enc1
Enc2
MUX
Real Time TV services
Content “on demand” servers
QPSK
Modulator
Services uplinked
to Satellites
What is Direct to Home
Satellite Television?
•Sky platform dominant in the UK
•Provides access to 600+ channels: slots on the
electronic programme guide (“EPG”) have just run
out
•Provides NVOD services (“near video on demand”)
•Provides PPV services (“pay-per-view”)
•Provides interactive services via Open TV and WML
•Provides PVR functionality via Sky+
•Requires a set-top-box
•ITV and BBC to launch a ‘Freesat’ alternative
service
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Services downlinked via
receive satellite dish
and fed in to STB
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1998: Digitisation and Digital Broadcasting
“Terrestrial
Television”
:
Cable TV:
Analogue and
Digital
Digital
Satellite
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Analogue and
Digital
Television
Digital Terrestrial Television
Enc1
Enc2
Real Time
TV services
What is DTT?
•6 Multiplexes of 24.1Mbit/s
•Up to 10 services in a multiplex
•High quality video and audio
•‘interactivity’ via MHEG-5
•NB no return path
•Mix of free-to-air services and Pay-tv
•Currently limited core coverage from
80 transmitter sites UK Wide
•9 sites - Wales
•Reception can be patchy
•At DSO, core coverage of PSB
multiplexes expected to reach 98%
•Further capacity possible, subject to
Ofcom and RRC06
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Enc1
MUX
Enc2
MUX
Enc3
Regional (RPOC) and
National (NPOC)
Multiplexing Systems
BT Distribution
Network
COFDM
Modulator
80 Transmitter
Sites
Analogue…Digital
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Content Distribution Platforms 2002
Terrestrial
(Analogue &
Digital)
Cable
Satellite
DSL
(IPTV)
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DSL (IPTV)
Enc1
Enc2
MUX
Real Time TV Services
IP Encapsulator
‘Internet’
(Usually dedicated
ATM circuits)
Content “on demand” servers
What is IPTV?
Local BT exchange
(DSLAM)
•Direct to consumer service, offering:
•Broadcast television
•Video on demand
•Deliver over a closed IP network
•Offering a high QOS
•Fixed wire delivery, currently DSL in
the UK (Homechoice in London and
Kingston in Hull)
•“Soft Launch” of BT Vision
Local Loop
(twisted pair) to the home
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Content Distribution Platforms 2004
Terrestrial
Television
CATV
PC
Satellite
DSL
(IPTV)
Mobile Phone
(3G)
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Mobile
Phones (3G)
Mobile Telephony (3G)
MPEG4
Encoded Content
Content
Server
3G Distribution
Network
What is Mobile Telephony (3G)?
•Direct to consumer service carried in-band
over 3G mobile telephone networks, offering:
•Recorded video-clips
•Could provide ‘mobisodes’
•Video messaging between handsets
•Content can be FTV or pay-tv
3G handset
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3G cellular
transceiver network
2007: The Modern Media
Terrestrial
TV
Cable
PC
Satellite
Mobile
Phone (3G)
DSL
(IPTV)
Internet
Mobile Telephony
(3G)
Mobile Television
(DVB-H
and T-DMB)
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Media
Players
Mobile TV devices
(DVB-H and T-DMB)
Internet
Windows Media
Encoded Content
WM
Server
Internet
Streaming
Server
Live Content
ISP Connection
Real Time Encoder
What is Internet Delivery?
•Delivery of content encoded using e.g.
Windows Media or Real Networks.
•Usually Unicasting
•TCP/IP based delivery
•Viewed on a PC with a client
application
•Can be accessed from various terminals
and various connectivity (e.g. PC,
handheld, 3G mobile phones)
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Windows
Media Player Client
Mobile Television (DVB-H)
Enc1
Enc2
Real Time
TV services
Enc3
MUX
Distribution
Network
What is DVB-H?
•Delivery of live television programming to
mobile devices via DVB-H transmissions
•Cellular transmission network likely
•Single Frequency Network topography
likely
•Frequency availability and licensing
framework not yet decided.
•Capacity subject to post-DSO frequency
plan and RRC06 decisions.
•Ability to receive high quality digital
pictures and sound
•Whilst on the move (cell roaming)
•O2, Nokia & Arqiva trialled a
DVB-H network in Oxford.
DVB-H
Equipped receiver
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DVB-H
Modulator
DVB-H
Transmitter Network
Modern Media Platforms : How do they work?
The Media Platforms: How do
they sell content and how can
users access content?
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Analogue Terrestrial Television
Business Model : 1982
Analogue
Terrestrial
Television
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TV
“Free to Air”
or “FTA”
Broadcasting Platforms
Business Models: 1990
Analogue
Television
Free to Air
Analogue
Cable
TV
Analogue
Satellite
TV
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Basic Pay-TV
TV
Packages
Premium Packages
(Sports, Films/
Adult)
Broadcasting Platforms
Business Models: 1998
Digital and
Analogue
Terrestrial
Television
Analogue and
Digital Cable
TV
Free to Air
TV
Basic Packages and
Themed Packages
(“music” package;
“family” package)
Premium Packages
Digital Satellite
(Sport/Films/Adult)
“Pay-Per-View” or
PPV
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Broadcasting Platforms:
Business Models 2002
Digital and
Analogue
Terrestrial
Cable
Free to Air
TV
PC
Satellite
Mobile
Phone
(3G)
DSL
(IPTV)
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Basic and Themed
Packages
Premium Packages
(sport, films)
Pay-Per-View
Pay-PerDay/Week/Month
Media Business Models 2007 onwards
Terrestrial
TV
Free to Air
Cable
Satellite
DSL
(IPTV)
PC
Basic and themed
Pay-Packages
Mobile
Phone
(3G)
Premium PayPackages (Film,
Sport)
Mobile Receiver
Pay-Per
Day/Week/Month
Internet
Mobile TV receiving
device (DVB-H)
Mobile Phone
(3G)
Mobile TV
(DVB-H & T-DMB)
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Pay-Per-View
DVB-H & T-DMB
Video-On-Demand
What More?
•
•
•
•
•
•
•
•
•
BBC iMP
BBC Local
ITV Local
Sky & Easynet / Sky VOD
Sky HD
BBC HD
PVRs
iTunes
Google Video
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• BT Vision
• Virgin & Nokia DVB – H
• MobiTV
• Vodafone/Sky/
Orange/3
For example….
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Mobile – 3G handsets
Nokia 6630
Apple iphone
(2.5G)
Sony EricssonV600i
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High Definition
•
•
•
•
Improved picture quality
Sky and BBC HD plans
BBC, ITV, C4 & Five MOU
Al Jazeera English language service
acquired global 15 mb p/s satellite feed
• HD simulcast of S4C?
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Portable Devices
PVR2G0 Pace
Sony’s Play Station Portable (Sony PSP)
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Microsoft Mobile Media Centers
Samsung a Creative
PVR
Allows preferred content to be
Identified and recorded
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BBCiPlayer
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"Our ambition is not to become a major
production company. Our ambition is to be
a major distribution company, a major
platform,"
Terry Semel
Yahoo!
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Wales…
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Welsh Broadcasting:
Where are we on the journey?
“The challenge will be to innovate and
compete, with relatively limited
resources……”
E.B. Hughes
The S4C Authority seeks to rise to the challenge of
the beginning of this new digital era. This is truly
a crossroads….
(Yr Athro Elan Closs Stephens)
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Why do we need “public”
television anyway?
• There are 400 channels on Sky…something for
everyone…why interfere…why tax?
• There are several pressing reasons why society needs to
control the media
PLURALITY
INFORMATION
CULTURE
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different viewpoints reflect and encourage
democracy and tolerance
increase our understanding of our society
and the world including arts, science,
history
to reflect and strengthen our British and
regional – Welsh, Irish, Scottish identity
Wales
ROYAL
CHARTER &
DCMS
Agreement
BROADCASTING
BROADCASTING
BROADCASTING
ACTS
ACTS
ACTS
UK Channel 3
Five
Channel 4
FIVE
4
Franchises
Content
Supply
Don’t care
about Wales
Commercial
company
S4C2
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Wales
programming
obligations
Wales: Status Quo
Content
supply
Content
Independen
t Producers
English Language
Welsh – orientated
content
“Wholly or primarily in
Welsh”
supply
Daytime
analogue
content
C4
FIVE
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Regional Programming
obligations
BBC WALES
S4C
S4C2
HTV
C4
FIVE
Wales: Finance Models
LICENCE
FEE
DIRECT
AD
DCMS
SALES
GRANT
£4m?
£90m?
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Advertising/
Sponsorship
/interactive
revenues
Ed Richards, OFCOM
•High quality
•Innovative
PSB
Programmes
•Challenging
•Original
•Widely available
•Diverse
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in sufficient
quantity?
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Devolution & Broadcasting
Commission in Scotland
“Broadcasting has a crucial and central role
in our democracy, but also in obtaining the
full cultural and economic benefits of our
creative industries”
Alex Salmond
8th August 2007
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Chris Bryant, MP
Should remain bilingual
for the “whole of Wales”
S4C &
BBC
Sporting fixtures should
have English AND Welsh
commentary
S4C
BUDGET
Devolved to Assembly in
Cardiff…along with rest of
Welsh language policy
Not enough
spectrum
for BBC2
content
•News = 5.5 hours per week –287 hours p.a
•Current Affairs = 47 minutes per week – 41 hours p.a
•Other Regional = 13 minutes per week – 167 hours p.a
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Retain as
a
MINIMUM
Wales…pressure points and
challenges
ANALOGUE
SWITCH OFF
loss of C4 analogue
content to S4C
Financial pressures:
BBC CUTS
ITV
WELSH
VIEWERS
Quality and diversity under
pressure
Need to compete against
all Sky and Freeview
channels without analogue
audience
Keen consumers of digital
TV…not necessarily “loyal”
to Welsh or even regional
English output
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threat to viewer
numbers if C4
content declines
loss of regional
focus?
loss of regional
focus?
Welsh/regional
content needs
to compete
harder for
audience share
political attacks:
Somalis in
Cardiff more
important
salami
slicing?
Regional
content
uneconomic
Need for more
investment in
content;
better
content very
popular
S4C
OPTION 1
(Status Quo &
BBC linkup)
OPTION 2
(amalgamate
with BBC)
Pretty well achieved
NO: Corrodes
plurality, focus
and associated
benefits
- “publisher” already
- nourishes TV production
OPTION 3
(PSP)
- multi-platform
- new BBC relationship:
£72m p.a
- new brand
- new demographics
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S4C: Challenges
-English C4 available to everyone in Wales
-S4C will lose C4 English–speaking viewers
• Disappearance of
analogue channel
-S4C funding has fallen behind broadcast
industry costs
-S4C will lose commercial income
• funding
- IMP
- ITV local
- BBC local
-Ofcom’s Local TV Proposals
• Challenge of local TV
• Programming
• Communications Act
2003
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all year-round pattern of
broadcasting,
coupled with events
and landmark
programming
inflexibility
- consolidate peak hours
upturn
- consolidate approval of
Welsh
speakers
- strengthen symbiosis with
larger, consolidated indies
- act as tendering agency to
head off PSP issue
We believe that a mixed approach, combining linear
television and digital media, is essential…”
DSAT
• main “flagship” multichannel television
package
• Interactive ancillary services
CATV
S4CD
DTT
DSL
• Retransmission of DSAT feeds
• Retransmission of DSAT feeds
• opportunity for content reversion for
broadband ADSL as well as linear
transmission
• “S4C Broadband”
IPTV
S4C2
• opportunity for reversioned online
content: “S4C Broadband”
• Internet presence: not expensive
3G
•“S4C mobile” service: reversioned news,
snippets, music, gossip, sport
DVB-H
• proper “TV to Mobile” opportunity for
S4C brand = the longer term
T-DMB
• Proper “TV to Mobile” opportunity for
S4C = the short term
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Linear content
&
interactivity
Linear content
&
interactivity
S4C
Linear content &
possible future
interactivity
S4C2
Broadband
Non-linear
multi
channel
strategy
Broadband
non-linear
Limitations
questions re churn
S4C Multichannel
Sianel Blant S4C
“It was put to us forcibly, that if
the young watch mainly English
language programmes, the decline
of the Welsh language will
continue…”
(the Crawford Committee Report into
Welsh Language Broadcasting, 1974)
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S4C DTT challenges
• 1996 Act gifted S4C half a digital multiplex…approx 4/5 channels’ worth
• 2002 – after collapse of ITV digital, Mux B was awarded to BBC Free to
View Limited: BBC services have universal carriage
requirement…trumped Mux A as a PSB mux
• S4C & Five claim to be third “universal” Mux was undermined &
diminished value to S4C as universal PSB
• S4CD to be transmitted on Mux 2 with TG4 & Gaelic service: fine,
universal coverage for the main feed, but…
• What about universal coverage of S4C2? Only 8-10 transmitter sites
perhaps 70/80% coverage as opposed to 211 sites for S4CD
• Potential childrens’ channel limited to 70/80%…Welsh Assembly limited
to 70/80% coverage?
• OFCOM consultation….S4CD to be universal in Wales but query S4C
multichannel strategy with only 70/80% coverage…?
• Platform neutrality issues
• Effective reduction in S4C digital settlement
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Wales…Conclusions
Universal coverage multichannel platform in
Wales + regular review of corporate
governance/best practice
Welsh interests to be protected by robust
corporate governance
Regional obligations to remain post ASO/DSO
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Jason Chess
Partner
Wiggin LLP
[email protected]
01242-631226
07785-111439
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