Viewers Take Control:

1

• Viewers Take Control
• PVRs and Video On Demand
• PTPA Programmers Meeting
• April 29, Atlanta, GA
• Jon Abbott, VP GM Television Stations, WGBH

2
What are PVRs and VoD?

• Both PVRs and Video-on-Demand are services which
  enable viewers to control
• what programs they want to watch
• when they want to watch them
• and what portions of programs they want to watch

3
What does a PVR do?

• Enables a viewer to pause live television(!), or
  rewind, fast-forward, or watch in slow motion
• facilitates skipping over commercials (and pledge
  breaks)
• records up to 80 hours of television on a
  computer disk (no tape needed) for time-shifted
  viewing
• with a few button clicks, records single
  programs, or every episode of a favorite series
  for later viewing

4
What is Video-on-Demand?

• VoD is a service offered by cable systems to
  their digital tier subscribers
• Using their cable remotes, subscribers have full
  VCR-like control over programs selected - play,
  pause, rewind, repeat - for a window of time
• VoD allows subscribers to select programs from a
  library containing hundreds of choices,
  refreshed regularly
• Most programs are made available at no additional
  charge to digital tier subscribers other
  programs (such as movies) typically cost between
  3 and 5 per viewing

5
Why VoD?

• Part of cable industrys pull out all the stops
  effort to personalize and customize viewer
  choices, and exploit advantage over arch-rival
  satellite services
• Early evidence suggests that cable subscribers
  who make use of VoD are less likely to disconnect
  from cable or downgrade from the digital tier
• VoD attracts new subscribers to cable and the
  digital tier
• estimated national penetration approx. 9
  million TV households at present, likely to
  increase to 20-30 million cable subscribers in
  next three-five years

6
Why VoD?

• VoD localization opportunities
• Comcast/Philadelphia -
• agreement with local NBC affiliate to offer local
  newscasts on demand, NBC Nightly News, Dateline
  NBC, Meet the Press
• Philly on Demand - locally-themed programs from
  HGTV and Food Network, others to follow
• Comcast/New England
• Get Local
• WCVB (ABC), WGBH, NECN, NESN

7
Consumer Control and Choice

• Broadcast TV Push Technology
• VoD Push - Pull Hybrid
• PVR Full Pull

8
WGBH Demand

• Worked closely with PBS and APT
• Launch Titles
• Newshour with Jim Lehrer
• Greater Boston with Emily Rooney
• Simply Ming
• AmExs Patriots Day
• Colonial House
• Beat The Press and other local titles
• PBS Kids on Demand

9
Implications

• both PVRs and VoD threaten future viability of
  on-air fundraising
• individualized viewing enabled by PVRs and VoD
  challenges traditional program scheduling
  strategies
• individual programs could be disconnected from
  channel branding - strong argument for on-screen
  bugs
• greater emphasis on program brands and targeted
  promotion
• revisit communications options magazines, web,
• e mail

10
Implications

• Extend shelf life and impact of high titles
• Newshour
• Frontline
• Greater Boston
• Footprints and high visibility titles -
• Colonial House, NOVA, AMEX, Masterpiece
• Lifestyle - Simply Ming
• Kids