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iTV: Changes to Business Stategies and Public Policies. Dr. Duane Varan Interactive Television Research Institute. Historical Overview. New Media do not displace old media But they do displace the business models of older media
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iTV: Changes to Business Stategies and Public Policies Dr. Duane Varan Interactive Television Research Institute
Historical Overview • New Media do not displace old media • But they do displace the business models of older media • Example: Dramatic shift in the business of newspapers, theatre, radio, cinema and now television.
Paradigm Shift • Changes currently underway represent new paradigm • Not everything will change - but much will • Have to have courage to embrace the change - seize new windows of opportunity • Not just new industries, but the salvation of traditional media enterprises • Radical implications for both business and policy
The Shifting TV Landscape • Fragmenting Audience • Increasingly becoming ambient medium • Increasing viewer control (e.g. VCR zipping at 72% - up from 54% in ‘90) • Increasing premium program costs • Multiplication of conduits • Commoditisation of exposure
TV’s New Business • Needs a new business - digital strong potential • But unclear what the new business is • Clear potential for iTV - but spotty record • Can’t cannibalise existing business • 30% of iTV viewers going into interactive services during ad breaks • 88% use PVR’s to zap ads
The New Value Chain • New players - each of which think they’ve contributed 90% of the added value • New rights - both for new product and for existing product • New need for collaboration between players (e.g. backchannel, EPG, PVR, etc.)
New Content • Who will champion and discover the new content? • How do we discover what audiences want? • How do existing content producers develop the skills and underwrite the new content? What platform do they develop for? • Remarkable export opportunities
The New Viewer • No longer the commodity of exchange • No longer the silent partner • How do we build with the viewer as an active participant in the process • R&D process in development critical - but where’s the funding coming from
Self Regulation/Social Responsibility • Privacy • ‘Safe’ space • Codes of Practise • Quality Control
Spectrum Management • Digital technology offers remarkable spectrum efficiency - compared to remarkable wastage with analog • Potential financial returns from sale of spectrum
Stimulate Industry • Light touch • Strong national broadcaster • British model • Australia policy based on protecting vested interests by penalising everyone - it’s what we CAN’T do rather than what we CAN.
Social Policy • Regulation is good - creates iTV’s greatest revenue streams • The old rationale’s challenged • The old remedies no longer work • What is the ‘new’ public interest • New issues: privacy, cultural integrity, etc.
Defining New Media • How do we define something we don’t yet know • Datacasting worst case scenario • Promise vs. performance
Social Impact • No body of research yet • Desperate need for research
Appropriate Regulatory Mechanism • Does our division of regulatory mandate still work in a convergent environment? • Possibility of creation of ‘super’ agency (e.g. OFCOM)