Video Age International June-July 2012

V I D E O • A G E JU N E 2 0 12 18 (Continued from Cover) When Content Is UbiQuitous head of Digital Business Development at MIP-TV and MIPCOM (Note: UbiQ is not affiliated with Reed Midem.) “There are many existing events but no true one-stop shop that gathers digital and interactive content creators and all content editors and platforms. “In the digital business, it’s all about identifying the right partners with whom to reach consumers. We wanted to create a pragmatic, cost-effective market that included TV, music, apps and games,” he said. Flatres said the Paris location is just right for those in Europe, easily accessible from most other countries, and the City of Light’s plethora of hotel options offers something for every price point, even tech start-ups that might be strapped for cash (for now). With worldwide maturation of connected TV and the increasing popularity of tablets, Flatres said, now was the perfect time to kick off a market like UbiQ. “Tablets are becoming complementary to the bigger screen. And every TV company needs to tap into additional revenues, and take advantage of all the other tools available for consumers to interact with their content.” “TV is turning fully digital,” Flatres said, adding that the TV industry can learn a lot about how to face digital proliferation from the music side. Monday afternoon will see a musical platform showcase that’ll include representatives from Universal Music, Disney Mobile and more discussing the past 10 years, and the future of the music business. But, Flatres said, “Every industry can learn from each other. Brand integration is very important, and it involves so many forms of media these days.” Irv Holender, of Multicom Entertainment Group, concurred that the television industry is facing a lot of unknowns when it comes to digital business models. Currently, there are linear deals (sponsorships), in addition to VOD and downloads. Many of the digital companies offer “revenue sharing, but in order to do that, you must first spend the money to deliver the content, and pay to convert the content upfront. That’s not easy — especially for independents,” he said. “It’s the Wild West out there, and there’s no big money in it yet,” Holender said. “All the new technologies come with different business models, different methodsofdelivery,differentcompression needs and different standards.” Flatres offered his own predictions for the digital model: “With the cloud technologies and the development of very high-speed and 4G networks, I think that download-to-own or to-rent will die. The streaming model will definitely win the game. In France, which is the most advanced country on IPTV, the most popular model is streaming.” As of press time, 226 companies had registered for the event. Flatres expects to reach 2,000 registrants by June 18. He is hoping registration numbers will triple in the coming years. While the event is in Paris, companies from 30 countries across the world will attend, including Singapore, Australia, Turkey, the U.S., Canada and Latin America. “It will be a strong marketplace in the heart of Europe, not just a European marketplace,” Flatres said. Participating companies include YouTube, Viacom Media Networks, Disney Mobile, Ubisoft, Bit.ly and FremantleMedia. The event will feature two full days of conferences. Monday morning’s keynote on “Capturing New Audiences” will be presented by Randi Zuckerberg, CEO of RtoZ Media, and former marketing director of Facebook, and Doug Scott, president of Ogilvy Entertainment. That will be followed by a social media showcase, a branded entertainment showcase, tech demos from five leading technology companies, a second screen/ social TV showcase, a music platform showcase and a web video showcase (which includes Allen DeBevoise, the CEO and co-founder of Machinima, the number one channel on YouTube). Tuesday’s keynote, “Monetizing Digital Media” will feature Louis-Pierre Pharand, head of Ubisoft and Bruce Kirkland of Tsunami Entertainment. It will be followed by global digital media case studies, a games showcase, a measurement and data showcase, and a mobile showcase. The final session, on June 19, will feature a YouTube Showcase. A YouTube representative and major French music label will show how to maximize promotion and revenue streams through the use of YouTube. Asked how this market differs from others around the globe, Flatres said: “Our target is completely clear. We are bringing together companies from TV, music, games and social media to share experiences on how to capture, engage, monetize audiences and measure ROI in the different arena. The idea is not to think of them as different segments,” he said. Gwénaël Flatres of UbiQ The iconic Palais Brongniart Inside Palais Brongniart, the event venue DIGITAL RIGHTS AND INTERNET RIGHTS At first, digital rights and Internet rights may appear to be one in the same, but Ettore Botta, president of the Los Angelesbased online marketplace Global Entertainment Media Markets, explained that: “Digital television (digital rights and/or digital sales) refers to FTA or Free Terrestrial TV, specifically to the Free Terrestrial TV sub channels or multiplexes. Internet rights and/or sales refers to channels that are distributed via broadband. Since it uses the Internet protocol, at times it is referred to as IPTV rights. Internet rights can be subcategorized as streaming and download. Streaming can be live, time-shifted (so-called “catch up” for later viewing) and on-demand. Furthermore, Internet rights can be for sell-through, download-to-own, download-to-rent and download-to-burn. License fees and windows for digital rights follow those of traditional TV, however Internet rights are evolving with different business models and an Internet license term can last for up to 10 or 15 years. The two key business models for Internet rights are: Advance minimum guarantee (MG) plus back-end revenue sharing and the not-so-desirable revenue sharing only. Advance MG can be in the order of $1,000 to $2,000 per hour, while revenue sharing is usually a minimum 25 percent of the retail price from directly owned IPTV channels and 50 percent from third party IPTV channels (when combined with an advance MG business model.)”

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