Key challenges for public broadcasters February 22 nd 2006

1. Key challenges for public broadcasters February 22nd 2006 Nic Newman | Head of Product Development and Technology

2. Key challenges • Need for change – how worried should we be? • Read/write web – responding to the participation challenge • Audio video revolution – how do we respond?

3. Mark Thompson “…we're going to have to change the BBC more rapidly and radically over the next three to five years than at any previous point in its history”.

4. BBC Journalism is valued hugely • Research emphasised that audiences place “News” as the top valued programme type in terms of importance to the country Source: BBC Value Research, Human Capital/Martin Hamblin GFK, 2004

5. 2004 2005 Overall reach is strong but falling among under 34s Source: PBTS, Seen/Heard BBC News Last Week Weekly reach (%) of BBC News across TV, radio and online by age Across the month: 97% All adults 15-34

6. Reach is falling in digital TV homes, especially for current affairs Weekly reach(%) Source: BARB / BBC Analysis, Q2 2005 All individuals cumulative reach (15 mins) across BBC One, BBC Two, ITV1, Channel 4 & Five

7. ‘Traditionalists’ ‘Mix and Matchers’ ‘Clickers and Flickers’ Covers a range of people – generally older and more downmarket They won’t work in an office with internet access Old and young alike Generally will have multi-channel TV and/or broadband internet access at home Generally young and more monied/educated olders All will have broadband internet access on their desk (at home and/or at work) …and multi-channel TV at home New audience research describes three types of news consumer Three Core Groups

8. Today, Traditionalists dominate Approx nos of people ‘Traditionalists’ ‘Clickers and Flickers’ ‘Mix and Matchers’ ‘Level to which they embrace new technology’

9. As take up of technology increases the balance will shift from traditionalists ‘Clickers and Flickers’ Approx nos of people ‘Mix and Matchers’ ‘Traditionalists’ ‘Level to which they embrace new technology’

10. Our audiences recognise a new world is emerging rapidly • Greater choice of platforms and providers • Greater power to shape personal consumption around own lifestyle / behaviour • Greater opportunity for involvement • Greater ability to compare / contrast providers – less loyalty

11. They think we are They would like us to be more Upstanding Modern + Respected Accessible + Accurate Courageous + Formal Dynamic + We are highly thought of but they want change

12. Others are already there

13. Fear is that we will lose out to the technology gatekeepers

14. Should we really be worried? news

15. It’s “1 in 4.8 billion”

16. It’s “1 in 4.8 billion”

17. But increasing need to satisfy shareholders may change things

18. I’m an optimist

19. It’s the content that still counts “The value of news content will outweigh the broadcast, print and even online "containers," that the industry produced during the first phase of the new media revolution. “ – Tom Curley, AP CEO But the content alone is not enough ….

20. Challenge of participation Always someone who knows more than you do …

21. BBC and participation “I could hear them screaming and two village men came running to help but the floor split into two, leaving cracks in between and my wife's leg got stuck inside. My wife was pulling my daughter's skirt to keep her alive and away from the wave. We got out safely and went to Chennai, but it was a miraculous escape.” Rahul Thiagarajan, Chennai, India

22. BBC and participation

23. BBC and participation

24. User Generated Content

25. User Generated Content On July 7th 20,000 emails on the London Bombings, 1,000 images from the public 3,000 SMS text messages

26. BBC and participation

27. BBC and participation

28. BBC and participation

29. BBC and participation: Blogs

30. BBC and participation: Openness The most open and transparent news organisation in the world “Create a brilliant world class interactive website for open engagement with audiences in which editors and correspondents all actively participate with the public in discussion about our decisions and dilemmas” BBC Creative Futures: Dec 05

31. Other examples

32. BBC and accessibility

33. BBC and participation: Challenges ahead • Involve our readers/users more • Text, pictures and video • Simple intefaces to allow users to send and interact • Staff up to follow up and verify content • Sharing the content across the BBC • This complements and improves our work • Opportunity not a threat!

34. backstage.bbc.co.uk

35. API

36. New tricks with our content

37. Creative Archive

38. In video too…

39. Audio video revolution

40. Audio video revolution Ultimately the internet's going to be the most important medium we operate in and it's going to be an important way of delivering TV and radio. It already is ... New technology is transforming the TV industry, and broadcasters that don't embrace the internet may ultimately become extinct. Mark Thompson Observer Jan 2006

41. Audio video revolution Once the BBC's TV channels are streamed live over the internet, its interactive media player will … allow viewers to save programmes and download the previous week's schedule, as well as access its extensive archive: Mark Thompson Observer Jan 2006

42. Opportunities and threats: Google Video

43. What’s going on … why 2006? • Industry ready (rights, independents etc) • Consumers ready - primed by music on demand and already downloading video • Technology is ready (broadband links, DRM, storage, wireless links PC and TV)

44. Consumers love Video on Demand 50% of viewing in Sky+ Homes is timeshifted IMP trial each person downloads 5 programmes a week Quality is improving

45. Technology: Broadband pipes 60% of the UK’s internet users are now on Broadband Average connection speed is now 1MB/sec BT becoming TV provider later in the year, Virgin and NTL about to merge. Convergence telephony and content

46. BBC News video usage Over 100% growth Dec 04 to Dec 05 • Oil Fire: 525,808 uniques 1.8m hits 11/12/05 • Airbus super jumbo launch: 413,162 unique users and 1.0m hits on 27/4/05 • Shuttle landing: 403,887 unique users and 1.1m hits on 9/8/05 • Bush clip of door exit: 385,147 unique users and 0.73 hits on 21/10/05 • London bomber/Katrina: 370,581 unique users and 0.98m hits on 2/9/05

47. BBC Radio usage: Audio on demand Radio player 1.2m unique users week Over 50% of BBC bandwidth taken by streaming radio Podcasts 500,000 a week and rising

48. Video on demand: Web and IPTV Selected programmes on web Download trials (g IMP, Vodcasting) Cable TV (Homechoice and others) IPTV (Media Centre)

49. Video on demand: Web and IPTV

50. What is next …. My BBC Player • Integrated interface and standards for all audio and video on bbc.co.uk (incorporates News player, Sport player and radio player) • Free Live TV on the internet (all channels) • Free Downloads of all BBC TV and radio programmes (7 day catch up) • International proposition too It is a big deal. It is costing millions of pounds and will drive the industry in the UK