Argument Object

1
The best of Cinema Networks - FASTWEB
Overview
Andrea VULTERINIBusiness Affairs e Relazioni
Istituzionali
2
FASTWEB in a Nutshell
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How we got there (1/4)- Our view on the
Converging Arena
Not a Media company
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How we got there (2/4)- Recent Service Milestones
Unified STB
GOAL
Simplify sales Expand market

• All SKY content DTT free and premium FWs
  is most complete digital TV in Italy
• Hybrid box
• SKY agreement
• Our STB is not better than SKYs
  or Mediasets it is just the sum of them,
  plus more remove reasons not to buy

5
How we got there (3/4)- Current Commercial Offer

• All national channels DTT channels a bunch of
  international channels

• Value added VOD-like functions on traditional
  national channels (PVR and Catch-up TV)

20/month

• 2 VoD libraries, proprietary brand ONtv Rai
  Click (5.000 programs 700 movies on PPV)

• 2 branded libraries of S-VoD content (ESPN
  Classic Sport and Cartoon network)

and if one wants, SKY Packages at SKY prices

• SKY football in Pay-per-View

• HD STB in free lease

• Voice BB in PPU

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How we got there (4/4)- What our customers watch
on demand

• 170k STB installed
• 120k VoD-enabled customers
• 30 VoD views per video customer per month
• 15 programs on demand
• 5 PVR videos
• 9 REPLAYtv videos
• 1 movie buy (actual buyers 3,5 buys/month)
• Up to 500,000 games per month

FASTWEB VoD platform delivers nearly 3,5 mln
unicast videos per month 2 killer apps ReplayTV
(1,5 mln videos/month) Kids VoD (0,8 mln)
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False fear on digital distribution
Myth
Reality
Broadcasters fear dilution of audience (on
demand PVR)

• Different ways to watch content can coexist
  (i.e. overestimated risk on ADV)
• HIGH USERS OF VOD WATCH MORE LINEAR TV
• FW IPTV NOW MEASURED BY AUDITEL

• More platforms
• Greater distribution efficiency

Possibility to specialize and coexist (eg VoD
has larger archives than DVD-rental, Movie
Theatres have different value proposition, )
Off-line distributors fear cannibalization
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Specific Issues of Italian Cinema Distribution

• High concentration of Italian movie revenues
  (top 50 of Italian movies 98 of Italian
  movie income, 5 top movies 80 of total income)
• Cinema presences more concentrated than
  population in big cities
• Polarization (single screen theatres in small
  centres, multiplex in big cities)
• High seasonality

The winner takes it all

• Top Italian movie producers would benefit from
  greater distribution capacity in smaller centres
  (conflict with US movies in high seasonality)
• Independent Italian movie producers suffer from
  single screen-multiplex polarization and would
  benefit from greater distribution capacity in
  high season

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FASTWEB Specific Initiatives
Digital Distribution (IPTV and WebTV) could
mitigate the distribution issues of independent
content providers

• Contacts with Italian Film Festivals to give
  visibility to content not always visible to the
  mass market
• Available to explore web secure distribution of
  top AND independent movies (network independent ?
  not only FASTWEB customers)
• Available to consider independent movie
  distribution on IPTV

Necessary condition pure revenue sharing
remuneration and favourable windows
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From the idea to the implementation
Cooperation with Arcipelago for Corto Web 7.0 on
www.fastweb.it
Possible short form content on IPTV for the 2008
edition
2007 sponsorship, discussion for content in the
Extra or Alice nella città sections for the 2008
edition
11
Grazie
Andrea Vulteriniandrea.vulterini_at_fastweb.it