Digital Content Creation: Where will the funding come from?

Digital Content Creation – Where will the Funding Come From? The Telefónica Experience Angel Blasco. Head of Films. Corporate Content Unit June, 25th 2008 Telecommunications and Media Forum Madrid, Spain

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What do we do in content? ,[object Object],LatAm Telefónica Europe Markets ,[object Object],Cable & MMDS ,[object Object],[object Object],[object Object],[object Object],IPTV ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Satellite TV ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],FTA TV leader in Argentina ,[object Object],Mobile Portals FTA TV & other ,[object Object],[object Object]

Content Creation – Content Adaptation - Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Interactivity: VoD, interactive services and other features Video on Demand ,[object Object],Interactive Services ,[object Object],[object Object],[object Object],[object Object],Camera Choice ,[object Object]

Pay TV ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Telefónica TV activities

Internet ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Telefónica Internet (PC) activities

Mobile ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Telefónica Mobile Internet activities

Specific reasons to enter content 35% Description ,[object Object],[object Object],[object Object],[object Object],GROWTH FOCUSED ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],DEFENSIVE

Some experiences about availability of Content Sample Developments integrating creation, adaptation, and distribution of content on multiple platforms? DSL with music subscription included in the monthly price TV over 3G - Live F1 (Ad Funded) Terra TV FreeoD – Series & Movies Full tracks Download O2 UK and others Over 1 Million tracks on your mobile for only 6€ per month IPTV

Flexibility: “Time shifting” ,[object Object],[object Object],“ Te lo Perdiste” PVR New services give customer full control over the TV: forward, stop, rewind….

Flexibility: “Place shifting” ,[object Object],[object Object],[object Object],[object Object]

Where will the Funding come from? Dealing with the “Right to See” Producers Produce The Product Equity Investors Library value Soft Money Grants Subsidies Sponsoring Product Placement Sequels Prequels Spin-offs Advertising Pre – Sales MGs Sales Revenue Sharing Film – DVD - TV New Media Financing Producing Distributing Exhibiting Loans Prizes Deferrals

Allocation of Players in the value chain As online distribution increases, allocation of revenues will move down stream the chain Final Customer Distributors Aggregators Rights Holders Creators

Financing models in online distribution Transactional – Subscription – Free On Demand Upfront Fee Revenue Share (With or W/O MG) Ad Share (With or W/O MG) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Adjustment of business models to digital convergence Bundles Live content and interactivity Aproaching to date to date window and longer Viewing Periode for customers Flat Rate and Dual Delivery Services Free Content on PC in the same window that uses Free to Air TV Operators Nature of content makes networks the natural distribution system Exclusivity Rights for Music Concerts

Evolution of cross-platform offers will push integration 12 6 3 9 1 2 4 5 7 8 10 11 While commuting, Maria watches the Best-of-the-Week of OT in her mobile Once at home, she downloads a more extended version of OT weekly summary to the PC Maria downloads the full-track of the last OT programme, and also receives the ringtone and wallpaper in her mobile Beep Beep!!! An alarm sounds it its mobile: OT is going to start in 5 minutes!!! She runs to the TV The program is over and Maria joins the OT forum from the PC and draws up a ranking of the best songs Maria chats through TV IM with Carlos about today’s singers’ performances Voting starts! Send an SMS with the name of your favourite singer to make him win 1 2 3 4 5 6 7

Summing up ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Telefónica: leading growth in digital entertainment Opportunity brought by industry changes Telefónica broad scope in content Strategic focus enabling effective entry Already a leading player and speeding up

Some Conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object]

Digital Content Creation: Where will the funding come from?

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Digital Content Creation: Where will the funding come from?