1. Décembre 2008
DEP – Pierre PETILLAULT, Didier GUILLOUX, Bernard CELLI – 20/10/2006
Mobile Connected TVs:
Economic and Regulatory Consequences
for Media Players?
Telecom & Media 2.0 – Moscow
Wednesday, June 8th 2011
Emmanuel GABLA
Member of the Board
Conseil Supérieur de l’Audiovisuel

2. Agenda
1 – Mobile Connected TVs Specificities
1 – Mobile Connected TVs Specificities
2 – Consequences of the Development of Mobile Connected TVs on the
2 – Consequences of the Development of Mobile Connected TVs on the
Players of the Value Chain
Players of the Value Chain
3 – Regulatory Issues
3 – Regulatory Issues
-2-

3. Fixed Connected TV
TV set directly connected to the Internet through an Ethernet port
TV set connected to a box, which is itself connected to the internet. E.g.:
Wii, PlayStation, Apple TV, Fetch TV, Roku…
ANTENNE
RATEAU
OUTSIDE ANTENNA ETHERNET
PORT (DTT DECODEUR INCLUDED) PORT ETHERNET
PORT
PERITEL (OR HDMI)
PORT
TV INTERNET
DECODEUR MODEM
- Cable - ADSL
TELEPHONE OU
- Satellite - Cable CABLE PLUG
- ADSL
Internet is just one more source of media content on TV sets
There are closed environments (access to a few applications only) and open
environments (access to the whole internet)
-3-

4. Mobile Connected TVs
Most smartphones and tablets are already connected to the internet
Few ways to receive media contents on mobile devices:
DVB T or DVB H WIFI
Antenna Antenna
DVB-T is mostly not available on mobile devices ; DVB-H as so far a
very small footprint (in France: no launch scheduled on the short
term)
Consequence: Internet is the main source of media content on mobile
connected TVs
Closed environments seem easier to set up
-4-

5. Projected fixed Connected TVs Sales in France
120% ~8 M
~7 M 100%
100%
90%
~7,5 M TV sets sold in
~7,5 M TV sets sold in
80%
2009 including 450 000
~5 M
2009 including 450 000
Connected TVs
Connected TVs 60%
60% ~4 M
45%
40%
23%
0,5 M
20%
6%
0%
2009 2010 2011 2012 2013 2014
Source: NPA, Simavelec
By 2013-2014, most TV sets sold in France will be connectable. With a
75% broadband internet penetration rate, most of them should be
-5-
connected.

6. Projected mobile Connected TVs (tablets) Sales in France
Projected tablet sales in France:
5 4,7 M
4,5
4
3,5
3
2,8 M
2,5
2
1,3 M
1,5
1
0,4 M
0,5
0
2010 2011 2012 2013
Source: Estimations Deloitte
These tablets will actually be connected to the internet (contrary to
connectable TV sets which will not be necessarily connected)
The growth of connected TVs might be in mobile connected TVs
-6-

7. What Impact of Mobile Connected Tv on Usage?
Ability to receive media content everywhere;
Ability to receive media content everywhere;
Main features
Main features Access to audiovisual content available on the internet;
Access to audiovisual content available on the internet;
Access to applications adapted for smaller screen.
Access to applications adapted for smaller screen.
Quantity, nature and quality of audiovisual contents
Quantity, nature and quality of audiovisual contents
available on the internet;
available on the internet;
Key Factors of Success
Key Factors of Success Ease of use: user interface ergonomics;
Ease of use: user interface ergonomics;
Minimal quality of service on mobile internet networks;
Minimal quality of service on mobile internet networks;
Ability to interact with fixed equipments.
Ability to interact with fixed equipments.
-7-

8. Agenda
1 – Connected TVs Market
1 – Connected TVs Market
2 – Consequences of the Development of Connected TVs on the
2 – Consequences of the Development of Connected TVs on the
Players of the Value Chain
Players of the Value Chain
3 – Regulatory Issues
3 – Regulatory Issues
-8-

9. Impact on Media Players 1/3
R: RISKS O: OPPORTUNITIES
O: The ability to receive media content on mobile device
O: The ability to receive media content on mobile device
could contribute to boost sales
could contribute to boost sales
Mobile equipments
Mobile equipments
manufacturers
manufacturers Mobile Connected TVs allow equipments
Mobile Connected TVs allow equipments
manufacturers to climb up the value chain by selling
manufacturers to climb up the value chain by selling
services
services
R: The TV distribution function might be by-passed: there is
R: The TV distribution function might be by-passed: there is
TV distributors
TV distributors
no more need for a cable operator or a satellite distributor
no more need for a cable operator or a satellite distributor
R: The mobile network might be saturated
R: The mobile network might be saturated
Mobile Operators //
Mobile Operators
ISPs
ISPs
O: They become key to access audiovisual contents on the
O: They become key to access audiovisual contents on the
internet and may be able to filter/select content
internet and may be able to filter/select content
-9-

10. Impact on Media Players 2/3
R: RISKS O: OPPORTUNITIES
O: Development of new services better suited for end users
O: Development of new services better suited for end users
Free-to-air
Free-to-air (My TF1): for instance using interactivity;
(My TF1): for instance using interactivity;
channels
channels They can be received in mobility without supporting
They can be received in mobility without supporting
additional costs (contrary to what happens with DVBH)
additional costs (contrary to what happens with DVBH)
R: More competition with non linear services
R: More competition with non linear services
Decrease in revenues from TV distributors
Decrease in revenues from TV distributors
Pay TV channels
Pay TV channels
O: Self-distribution and creation of bundles of services linked
O: Self-distribution and creation of bundles of services linked
with the channels (ODAVMS) + access to mobile services
with the channels (ODAVMS) + access to mobile services
R: Competition with internet players (You Tube,
R: Competition with internet players (You Tube,
On demand
On demand DailyMotion…)
DailyMotion…)
audiovisual media
audiovisual media
service (ODAVMS)
service (ODAVMS) O: Direct access to end users without the intermediary of a
O: Direct access to end users without the intermediary of a
providers (VoD)
providers (VoD) TV distributor; on demand services seem better adapter
TV distributor; on demand services seem better adapter
to a mobile environment
to a mobile environment
- 10 -

11. Impact on Media Players 3/3
R: RISKS O: OPPORTUNITIES
R: Increase in regulatory obligations: control of contents,
R: Increase in regulatory obligations: control of contents,
Internet Content
Internet Content contribution to the production… if they become widespread;
contribution to the production… if they become widespread;
Providers (You
Providers (You Value sharing with mobile network operators
Value sharing with mobile network operators
Tube, Daily
Tube, Daily
Motion…)
Motion…) O: Access to mobility: consquently increase in advertising
O: Access to mobility: consquently increase in advertising
revenues
revenues
R: Possible modification of current economic balance
R: Possible modification of current economic balance
(paid by TV channels, rights territoriality…);
(paid by TV channels, rights territoriality…);
Risks on the financing of national and European
Risks on the financing of national and European
Broadcasting
Broadcasting productions in France
productions in France
Rights Holders
Rights Holders
O: Direct access to mobile end users is made possible (no
O: Direct access to mobile end users is made possible (no
channel needed)
channel needed)
O: Might be able to address new niche market
O: Might be able to address new niche market
Advertisers
Advertisers
thanks to mobility
thanks to mobility
- 11 -

12. Consequences for end users
R: RISKS O: OPPORTUNITIES
R: Decrease in the quality of programs (proliferation vs.
R: Decrease in the quality of programs (proliferation vs.
quality) and in the quality of service (speed, freezing…)
quality) and in the quality of service (speed, freezing…)
Possible increase in mobile internet access price (in case
Possible increase in mobile internet access price (in case
networks are saturated)
networks are saturated)
Exclusive deals between mobile equipments
Exclusive deals between mobile equipments
manufacturers and content providers might reduce the
manufacturers and content providers might reduce the
customers choice
customers choice
End Users
End Users
Closed environments (like ITunes) might increase prices
Closed environments (like ITunes) might increase prices
for end users
for end users
O: Everywhere access to a larger number of media
O: Everywhere access to a larger number of media
services, especially non-linear ones available on the
services, especially non-linear ones available on the
internet
internet
« a la carte » access and billing is possible
« a la carte » access and billing is possible
- 12 -

13. Agenda
1 – Connected TVs Market
1 – Connected TVs Market
2 – Consequences of the Development of Connected TVs on the
2 – Consequences of the Development of Connected TVs on the
Players of the Value Chain
Players of the Value Chain
3 – Regulatory Issues
3 – Regulatory Issues
- 13 -

14. Regulatory Issues Raised by Mobile CTVs 1/2
Several levels of obligations:
Several levels of obligations:
- Linear channels;
- Linear channels;
- ODAVMS;
- ODAVMS;
Facts
Facts - Other services available on the internet.
- Other services available on the internet.
With mobile connected TVs, all content come from the internet, and is
With mobile connected TVs, all content come from the internet, and is
consequently not regulated by current media regulators.
consequently not regulated by current media regulators.
Risk of distortion of competition: incumbent editors are challenged by
Risk of distortion of competition: incumbent editors are challenged by
new entrants, which are sometimes powerful (i-tunes, You Tube) and
new entrants, which are sometimes powerful (i-tunes, You Tube) and
established abroad. This would lead to a transfer of value from
established abroad. This would lead to a transfer of value from
regulated players to non-regulated players.
regulated players to non-regulated players.
Risks
Risks Risk of bypass of current rules, which would make them inefficient. A
Risk of bypass of current rules, which would make them inefficient. A
TV show will be forbidden before 10 pm on fixed TVs, not on mobile…
TV show will be forbidden before 10 pm on fixed TVs, not on mobile…
Risk on the financing of national and European production: the
Risk on the financing of national and European production: the
regulation guaranties investments in national and Europeans works.
regulation guaranties investments in national and Europeans works.
This risk, identified with fixed CTv, will be amplified by mobile CTv.
This risk, identified with fixed CTv, will be amplified by mobile CTv.
- 14 -

15. Regulatory Issues Raised by Connected TVs 2/2
Do we need the same regulatory treatment for audiovisual
Do we need the same regulatory treatment for audiovisual
media contents and for internet content?
media contents and for internet content?
If a regulatory balance should be looked for, what would be the
If a regulatory balance should be looked for, what would be the
rationales for leveled rules?
rationales for leveled rules?
Contents
Contents What rules should be maintained in an Internet environment
What rules should be maintained in an Internet environment
regulation
regulation characterized by diversity and low entry barriers?
characterized by diversity and low entry barriers?
- childhood protection?
- childhood protection?
- data protection? :: key in a mobile environment
- data protection? key in a mobile environment
- New ways of financing French and European works?
- New ways of financing French and European works?
How do regulators deal with exclusive deals between mobile
How do regulators deal with exclusive deals between mobile
equipment manufacturers and content providers?
equipment manufacturers and content providers?
Competition Issues
Competition Issues
Are closed environments acceptable from a public policy
Are closed environments acceptable from a public policy
perspective?
perspective?
Is the distinction between mobile TV rights and fixed TV rights
Is the distinction between mobile TV rights and fixed TV rights
TV Rights Issues
TV Rights Issues still applicable when end users will want to switch between fixed
still applicable when end users will want to switch between fixed
and mobile devices?
and mobile devices?
- 15 -