June/July 2014 4 World (Continued on Page 6) A key thing is that programs costmoneyandpeoplewhomake TV need to get paid. The existent model seeks to do that, keeping revenues within a system. By trying to go outside this, the makers, distributors and creators are not remunerated, and quality as a consequence is likely to go down, or shows disappear. Like the print and music industries, which have fought hard with the reality of revenues being stripped by Internet downloading outside of their systems, TV faces the same dangers. Instead of putting creativity in jeopardy, Magine hopes that by building partnerships with makers like Disney, Discovery, Fox, CNN International, BBC, Eurosport, National Geographic, Nickelodeon and the Cartoon Network, we can help ensure the longevity of the TV sector that we all want to see grow and flourish. This does not mean we cannot innovate, either. The cloud system allows us to increase the flexibility of our services and enhance the consumer experience. People can view shows across devices, whenever they want, both live and catchup, without the demands of a strict schedule or fixed location. We have increased the amount of minutes viewers in Sweden watch TVby adapting the service to be as enjoyable as possible, while the industry is sustained. Throughout our interaction withbroadcasters, transparency has been paramount. The first thing we did before going on air with trials was to get written permissions from content owners to use their signals. We then made deals with studios to broadcast their shows in test runs, before securing agreements to launch commercially. As a final step, to ensure clarity all around, and goodwill from within the industry, we contacted the original content owners to ensure they were aware that we would be broadcasting channels that included content licensed by them. Though it might seem there is only one way to do OTT TV, our experience testifies that this is not the case. Instead of seeing the cloud as disrupting the sector, it can conversely be a means of sustaining TV for the future. It is vital to realize that TV needs the Internet, as much as the Internet needs TV. Sincerely, Michael Turner EVP, Content andNewMarkets Magine, Stockholm, Sweden Dear Editor: The case between Aereo and American broadcasting companies naturally casts light on the whole OTT TV industry, with commentators, the public and industry professionals alike discussing the merits of the system at large [Re: VideoAge My 2¢ Editorial, April 2014]. The problem with this, however, is that inadvertently all services are being bundled together, as if they all act in the same way. While Magine uses the same OTT system, our practices are different [from Aereo]. We have shown it is possible, and preferential, to work with the existing TV industry — especially its broadcasters — rather than seeking to disrupt it. Importantly, we believe a partnership between the existing system and new cloud technologies is essential for the long-term future of TV, for companies on either side of the cloud. Aereo and Magine: Same OTT, Different Model
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