Digital Rights Working Group Update

NETA Board Planning ConferenceJuly 25, 2006

I. Times are Changing

II. Public Television’s Viewpoint

III. Open Questions

IV. Key Takeaways

V. Next Step: The Feedback Loop

Today’s Agenda

Why Are Times Changing?

1% 1%3%

9%11%

14%

21%

28%

42%

1998 1999 2000 2001 2002 2003 2004 2005 2006

Total U.S. Households with Broadband Connections

SOURCE: The Home Technology Monitor

Home broadband Internet access is growing rapidly.

How Are Times Changing?

Radio & Television

Computer Handheld Mobile Device

NEW PLATFORMS

StreamingLive Downloaded Interactive

NEW INTERACTIONS

Therefore, we can more easily interact with new platforms in new ways.

How Do These Changes Affect PTV?They allow new players to deliver video & other media to the audience.

Download to Own

Streaming

Podcasts

Mobile Media

Broadcast

I. Times are Changing

II. Public Television’s Viewpoint

III. Open Questions

IV. Key Takeaways

V. Next Step: The Feedback Loop

Today’s Agenda

The Digital Working Group’s Process

• Digital rights emerged as a critical issue

Held Rounds Robins

• Issues are complex

• There is urgency to Act

• PTV should maintain Core Values

Developed Initial Perspective

• Broadly sharing findings from group

• Soliciting input and dialogue from the system

Seeking Greater Input

• Includes representatives from various affinity groups, PBS and CPB

• Goal is to provide clarity and recommendation for a digital rights strategy

Digital WorkingGroup Formed

1 2

3 4

How Do We Approach This Topic?

How should public television’s core mission translate onto new media platforms?

What combination of programs and platforms sustain PTV’s mission over the long term?

Answering the strategic question will help us answer the tactical question.

STRATEGIC

TACTICAL

The Strategic Question

How should public television’s core mission translate onto new media platforms?

Public Service Content

Maximum Possible Access

Deepen Community Service

By offering…

in order to…

with the…

STRATEGIC

The Strategic Question: A Fundamental ApproachHow can we broadly achieve this strategy?

Where appropriate, generate revenues.

Where sustainable, maintain free access to content.

All content free on all possible platforms.

or

INITIALLY…

THEN…

The Strategic Question : Example

NewsHourNewsHour offers an extensive archive of streaming video clips dating as far back as 1996.

The Tactical Question

What combination of programs and platforms sustain PTV's mission over the long term?

• Program Type

• Platform Type

• Time Period

• Revenue Opportunity

Common Vocabulary

• Assess Rights Individually

• Benefit the Entire System

• Experiment

Ground Rules

TACTICAL

+

The Tactical Question : A Common Vocabulary

Program Type

Platform Type

TimePeriod

Revenue Opportunity

Public Affairs History Local Science

Download to Own Streaming Podcast VOD

One Day Two Weeks One Year Indefinitely

Free Pay Per Use Member Premium Sponsorship

VARIABLES EXAMPLES

What are the four key variables in determining a rights strategy?

Public Affairs

Day

of

Bro

adca

st

One

Wee

k

One

Mon

th

One

Yea

r

Inde

finite

ly

Legend

Broadcast Free

VOD Subscription

Streaming Pay Per Use

Podcast Retail

Download to OwnDVD

The Tactical Question : A Common VocabularyHow do these rights combine into a rights strategy?

Program Type

Platform Type

TimePeriod

Revenue Opportunity

Ground Rules: Evaluate Rights Individually New platforms complicate rights acquisition and increase costs exponentially.

•Talent

•Music

•Stock Footage

•Literature

Rights Holders

X•VOD

•Streaming

•Download

•DVD

Platforms

•Broadcast

•One Week

•One Year

•Perpetuity

Time Periods

X•Revenue Model

•Types of use

Terms of Use

X

Ground Rules: Benefit Our Entire System The public broadcasting system is a complex, interdependent economy.

Stations

Producers

Audience

PBS

Funders

We are decentralized and close to our audience, well suited to experiment.

At this early stage, there are too many unknowns to risk large investments.

Ground Rules: Experiment The evolving, decentralized nature of new media favors experimentation.

Small

This space is rapidly evolving, so we must act now to maintain our relevance.

Experiments

Now

I. Times are Changing

II. Public Television’s Viewpoint

III. Open Questions

IV. Key Takeaways

V. Next Step: The Feedback Loop

Today’s Agenda

Question• Who is using the

content?

• How the content is being consumed?

• On what terms is the content being used?

• What is the business model?

Potential Answers K-12, higher education,

distance learning

Viewed, cited, mashed-up

Licensed for school site use, for broadly accessible use, etc.

State funded, school/student subscription

Depending on the answers, our rights position might change

Education environment provide another layer of complexity to the issue of digital rights

Open Questions: Educational Digital Rights How can we develop an educational digital rights strategy?

• The American people provide substantial funding for public television and should have access and use of public broadcasting’s content

• There is a need voiced by a growing variety of constituents for a trusted source for media on the emerging platforms

• Long-term access to content can help advance public broadcasting’s mission

• How much and what type of content would it contain?

• How much control over the content would users be given?

• Who, if anyone, would be an appropriate partner in this enterprise?

• What rights would be needed and how could we afford to pay for them?

• What implications would this have for producers and other underlying rights holders?

Why a Digital Archive? What Are the Rights Issues?

Open Questions: Digital Archive Should we establish a significant public Digital Archive?

• Are there certain types of properties where we all agree that having the most comprehensive rights package is critical (e.g., primetime national shows, children’s programs, local programs)?

• For any given deal, how do we balance the needs of the national players with the local stations?

• How will costs be covered on new platforms?

• How will revenues be generated and shared?

Open Questions: Unresolved issues What are the questions that the system needs to answer to effectively move forward?

I. Times are Changing

II. Public Television’s Viewpoint

III. Open Questions

IV. Key Takeaways

V. Next Step: The Feedback Loop

Today’s Agenda

The Four Critical Ideas

To advance our mission, we need to offer the broadest

free access possible

Digital rights must be individually evaluated

On balance, new business models must benefit our entire system

Successful innovation requires rapid

experimentation

We Are Flying This Plane at the Same Time We Are Building the Plane

Innovation

Consensus Action

Talking

Success lies in simultaneously moving and interacting in four areas:

I. Times are Changing

II. Public Television’s Viewpoint

III. Open Questions

IV. Key Takeaways

V. Next Step: The Feedback Loop

Today’s Agenda

• White Paper will provide guidance and recommendations for national and local digital rights strategies

Other Feedback

Tools

White Paper

Broader System Input

• Wikis• Web Conferences• Feedback from station experimentation

• AGC will facilitate input from affinity groups

• Input will provide clarity to issues in the paper that appear unclear

Next Steps Where do we go from here?