Broadband and Content: From Another Perspective

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Broadband and ContentFrom Another Perspective

• Daniel KAPLAN
• www.fing.org
• BROADBAND CONTENT WORKSHOP
• July 15, 2003

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Broadband creates important challenges and
opportunitiesfor commercial content
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But the reverse is not so true
Source eMarketer
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The killer app of (broadband)networks is
networking
E-mail - Chat - IM SMS IP Telephony Transactions
Networked gaming Community - Groupware ... and
P2P
Remember? TheatrophoneVoD MSN (1995) Web
TV WAP...
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(Broadband)content is abundent
Self-produced 3.5 M personal websites in
France! Weblogs Digital photo
video Terminal ? Initial
Free for good reasons Corporate /
promotional Research Ad-supported Free
speech Other valuation mechanisms
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So broadbands success does not depend on
professionnally produced content
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But broadband provideshuge opportunitiesfor
the content industry
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Broadband increasesonline usageacross the board
Content does notdetermin the move towards
broadband But broadband increases both paying
and non-paying content usage.
Source Pew Internet Report, 2002
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Consumers are not that reluctant to paying for
online content/services
USA (OPA, 2002/03) Paid content 2002 1.3
Bn Profitable sites Real.com, WSJ, Yahoo,
Ancestry.com,Consumerreports Only 40 of
Europeans would refuse to pay for online contents
(Jupiter)
Source Jupiter Research, 2003
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Broadband is a condition for the takeoff of
advanced contentsand uses
Collective uses e-Research e-Health e-Education/
Training Multimédia libraries Advanced
e-Government e-Tourism
Culture, Media Entertainment Audio-video Immersi
ve games Cultural creation heritage New
distribution mechanisms and models
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P2P The death ofcommercial content?
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The many sides of P2P
15-20 Internet users. Massive D/L numbersIpsos
19 P2Pists buy less CDs, 24 more. A great
test-marketing tool for labels. P2P is more than
justfile-sharing.
Can you win thetechnical war? Can you win a war
against your own customers?
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Responding to emerging consumer expectations
Ipsos-Reid, 2002 73 U.S. P2P users sample
before purchase 69 want 1 song,not whole
album 65 D/L song not easily available in
stores 30 have discovered new music
If you are competing with the darknet, you must
compete on the darknets own terms that is
convenience and low cost rather than additional
security. P. Biddle, M. Peinado, B. Willman
(Microsoft Research)
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Portability and roaming Context and
terminal-oriented formatting Personalised
streaming channels / parties, etc. Price/quality/i
nformation tradeoffs Collaborative
filtering Pro-active deliveryand advice Catalog
depth, archives Rare/new titles/artists Image/soun
d quality Content enhancement (description,
search) Add-ons (see DVDs) Brand valuation
Competing with P2P
Free P2P can not competeon these grounds!
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The takeaway Some policy implications
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Networks are about communications,not (just)
content
Networks are generic infrastructures Should not
be regulated as content distribution mechanisms.
Broadband is the road to success for online
content The content industry should push for
acceleration, not slowdown and control.
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The way forward for content
Take advantage of broadband. Recognize new
consumer expectations and behaviours. Embrace
innovation, value creation, service,new business
modelsand competition.
Content protection is of course legitimate But
a small part of the picture. The current focus on
this issue should not mislead regulators.
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Thank You / Merci !
www.fing.org