TV
Full transcript of TBS Intl. co-president Andy Bird's speech to RTS dinner.
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TWO FISH IN A TANK, ONE TURNS TO THE OTHER AND SAYS, "DO YOU KNOW HOW TO DRIVE THIS?"…
TWO PARROTS ON A PERCH. ONE TURNS TO THE OTHER AND SAYS, "DO YOU SMELL FISH?"…
TWO ITV CHAIRMAN LOOKING FOR A CEO, ONE TURNS TO THE OTHER AND SAYS, "HOW DID WE LET DAWN AIREY GET AWAY?"…
OKAY, SO THE LAST JOKE WASN'T FUNNY….SOME OF YOU MAY ARGUE THAT NONE OF THEM WERE FUNNY…….
AND YOU WOULD BE RIGHT ….AND THAT'S THE POINT, THE STATE OF THE U.K. TELEVISION INDUSTRY TODAY…AND ITV IN PARTICULAR IS A GOOD REASON TO HANG OUR COLLECTIVE HEADS IN SHAME.
MANY OF YOU KNOW MY OBSESSION WITH EXPOSING THE INSULAR NATURE OF U.K. BROADCASTING, AND SO TONIGHT I THOUGHT AMONG OTHER THINGS I'D USE THIS OPPORTUNITY TO SHED SOME LIGHT ON WHY WE FIND OURSELVES IN THIS POSITION AND WHAT THE FUTURE MAY HOLD.
I ALSO WANT TO ADDRESS THE GROWING THREAT FROM WHAT SOME COMMENTATORS REFER TO AS THE 'AXIS OF EVIL' AND BY THAT I MEAN THE BBC AND BSKYB. OKAY, IT'S NOT REALLY AN 'AXIS OF EVIL'...SKY ARE PERFECTLY REASONABLE PEOPLE!
I'LL ALSO TAKE A RUN AT THE COMMUNICATIONS BILL AND THE EFFECT IT WILL HAVE ON THE TELECOMMUNICATIONS INDUSTRY, WHILE ALSO DRAWING SOME UNCOMFORTABLE PARALLELS BETWEEN THE TROUBLES OF THE GERMAN MEDIA LANDSCAPE AND THE LEMMING LIKE TENDENCIES OF COMMERCIAL NETWORK TELEVISION INDUSTRY HERE IN BRITAIN.
BUT FIRST A LITTLE PERSPECTIVE…
WHEN YOU READ THE WEEKLY TRADES, YOU WOULD THINK WE WERE THE CENTRE OF THE TV UNIVERSE…
I HATE TO THE BE THE SPOIL SPORT .BUT THE TRUTH IS 'WE ARE NOT'.
AM I QUALIFIED TO SAY THIS? POSSIBLY… I HAVE THE PRIVILEGE OF HEADING-UP A COMPANY - TBS INTERNATIONAL - THAT UNDERSTANDS THE SAYING 'GLOBAL REACH, LOCAL TOUCH BUT MORE IMPORTANTLY BACKS IT ENTHUSIASTICALLY IN WORDS, ACTIONS AND RESOURCES.
IN JUST 10 YEARS WE HAVE TAKEN CARTOON NETWORK INTO 17 LANGUAGES, TCM INTO NINE, BOOMERANG AND TNT INTO THREE LANGUAGES EACH, PLUS INVESTMENTS LIKE VIVA MUSIC IN GERMANY AND CETV IN CHINA. ADD TO THAT CNN'S NINE LANGUAGES ACROSS 20 PLUS TELEVISION AND INTERNET SERVICES OPERATED OUTSIDE OF THE UNITED STATES AND YOU HAVE AN IMPRESSIVE PORTFOLIO OF BRANDS AND SERVICES.
ANYWAY I DIGRESS
I USED TO FIND THE NOTION THAT THE UK WAS THE CENTRE OF THE UNIVERSE LOOKING FROM THE THAMES EMBANKMENT, NORWICH AND MANCHESTER SOMEWHAT INSULTING, THEN I FOUND IT IRRITATING AND NOW AMUSING.
I ALSO HAD THE SAME FEELINGS WHEN BROADCASTING PEOPLE……………..PARTICULARLY FROM THE U.K. WERE SO DISPARAGING TO THE MULTI-CHANNEL SECTOR.
MY FIRST JOB, AFTER MOVING TO LONDON, WAS WITH MUSIC BOX - EUROPE'S FIRST PAN-REGIONAL MUSIC CHANNEL, OWNED BY VIRGIN, GRANADA AND YORKSHIRE AND THE PRECURSOR TO SUPER CHANNEL.
TWO THINGS STRUCK ME THEN AS GREAT EXAMPLES OF JUST HOW BADLY THE U.K. MEDIA INDUSTRY DOESN'T GET IT IN TERMS OF COMPETING ON THE WORLD STAGE.
THE FIRST WAS THE ACTT. BACK THEN WE STILL HAD A UNIONISED TELEVISION INDUSTRY, BUT WORKING IN THIS "NEW WORLD" OF SATELLITE BACK IN THE 80'S YOU WERE BANNED FROM GAINING FULL ACTT MEMBERSHIP UNTIL YOU'D SERVED A FEW YEARS’ PROBATION. A NEAT LITTLE TRICK ON THE UNIONS PART TO CONTROL THE FLOW OF LABOUR INTO TERRESTRIAL, BUT ONE WHICH RESULTED IN MANY SMART PEOPLE ABANDONING TERRESTRIAL FOREVER.
RESISTANCE TO NEW IDEAS AND NEW MEDIUMS IS A TRAIT THAT RUNS THROUGH BRITISH BROADCASTING, WITH A COUPLE OF NOTABLE EXCEPTIONS, THE BBC AND SKY. THE OTHER ENDURING MEMORY FOR ME OF THAT TIME WAS THE LAUNCH OF SUPER CHANNEL.
SUPER CHANNEL WAS SET UP BY THE CONFEDERATION OF ITV COMPANIES TO SHOWCASE THE BEST OF BRITISH BROADCASTING TO EUROPE…PISS-UPS AND BREWERIES SPRING TO MIND.
IF EVER THERE WAS A SIGN THAT ITV DIDN'T HAVE A CLUE ABOUT WHAT TO DO OUTSIDE ITS CORE BUSINESS, THIS WAS IT…TO BE REPEATED LATER WITH BSB, AND MORE RECENTLY WITH ITV DIGITAL.
FEW COMPANIES GET THE CHANCE TO SCORE A HAT-TRICK OF OWN GOALS AND CONTINUE TO PLAY IN THE TOP DIVISION…………………. AND THAT'S THE CORE OF WHAT I'M SAYING HERE TONIGHT.
ANYWAY, ENOUGH OF THE PAST…AS I'VE ALREADY SAID TODAY I GET TO OVERSEE SOME 40+ NETWORKS AND JOINT VENTURES WITH 32 OFFICES ACROSS THE WORLD.
WHAT MY BUSINESS IS ABOUT IS SCALE AND REACH. CNN IS AVAILABLE IN EVERY COUNTRY IN THE WORLD BAR THREE…IRAN, IRAQ AND NORTH KOREA….
WATCHED, READ AND LISTENED TO BY A BILLION PEOPLE ON TWO POINT SIX BILLION SCREENS... THAT, MY FRIENDS, IS SCALE. NOT ONLY DO WE COVER THE WORLD WITH CNN, WE'VE ALSO BEGUN TO FORGE IN-COUNTRY JOINT VENTURES SUCH AS CNN+ IN SPAIN AND CNN TURK IN TURKEY. THE LATEST, CNNJ - A JOINT VENTURE WITH TV-ASAHI, LAUNCHED IN JAPAN LAST WEEK.
CARTOON NETWORK ENJOYS NEARLY AS WIDE-SPREAD GLOBAL DISTRIBUTION AS CNN AND RACKS UP ITS OWN IMPRESSIVE STATISTICS…NOT ONLY IS IT THE NUMBER ONE KIDS’ CHANNEL AROUND THE WORLD, IN LATIN AMERICA, IT'S THE NUMBER ONE MULTICHANNEL NETWORK IN ALL DEMOS!
THINK GLOBAL, ACT LOCAL…
IF IT'S THAT SIMPLE, WHY AREN'T CARLTON, GRANADA AND OTHERS DOING IT? I CAN THINK OF TWO BROADCASTERS, SKY AND THE BBC WHO ACTIVELY PURSUE A GLOBAL STRATEGY. YOU GET THE IDEA THAT THESE TWO COMPANIES ARE BECOMING A CENTRAL THEME HERE!
BUT I CAN SEE FROM THE LOOK ON YOUR FACES THAT YOUR THINKING ‘THAT’S IRONIC AND EASY FOR YOU TO SAY BEING PART OF A GLOBAL COMPANY THAT LOST $100BN LAST YEAR" AND I DO WANT TO SPEND A COUPLE OF MINUTES TALKING ABOUT THE STATE OF AOLTW.
IT'S TRUE THAT EVERYTIME MY BOSS PHONES, I ASK MY ASSISTANT TO TAKE HIS OR HER NAME, SO GREAT HAS BEEN THE MANAGEMENT CHANGES RECENTLY. BUT WHAT IS IMPORTANT TO UNDERSTAND, IS THAT BEHIND THE HEADLINES, WE'RE STILL THE WORLD'S BIGGEST MEDIA COMPANY, THROWING OFF $9BN IN EBITDA AND FOUR POINT TWO BILLION DOLLARS IN FREE CASH FLOW LAST YEAR.
AOL IS VERY PROFITABLE AND ONE OF THE LARGEST REVENUE GENERATORS FOR AOLTW. I BET TONY BALL WOULDN'T MIND HAVING 33 MILLION SUBSCRIBERS! WARNER BROS GREW REVENUES BY MORE THAN 20% YEAR-ON-YEAR AND WE WERE IN DOUBLE DIGIT GROWTH ALONG WITH SISTER DIVISIONS. EVEN THE MUSIC COMPANY OUTPERFORMED ITS PEERS.
IN THE U.K., AOLTW’S REVENUES EASILY OUTSTRIP THOSE OF A COMBINED GRANADA AND CARLTON…WITH OUR WIDE-RANGE OF ASSETS, FROM WARNER VILLAGE CINEMAS TO IPC AND AOL, WE’RE PROBABLY ONE OF THE TOP TEN U.K. ADVERTISERS ALSO DID YOU KNOW THAT IPC SELLS ON AVERAGE 11 MAGAZINES A SECOND IN THE U.K. FROM ITS 80+ TITLES AND 73% OF U.K. WOMEN AND 55% OF U.K. MEN READ AN IPC TITLE.
SO, DESPITE WHAT YOU READ - AND WE'RE NOT WITHOUT OUR PROBLEMS - AOLTW IS VERY MUCH ALIVE AND KICKING AND SLOWLY BEING RE-ENGINEERED.
HERE'S THE THING, YOU DON'T HAVE TO SPEND A LOT OF MONEY TO ACHIEVE RESULTS.
WHAT YOU HAVE TO DO IS CHANGE THE MINDSET. THE ITV COMPANIES IN THE PAST HAVE ACTED LIKE THE GOOD OLD ACTT…YOU CAN ARGUE ABOUT REGULATION, THE AUCTION PROCESS ETC…BUT REALLY IT'S ABOUT A STATE OF MIND. I'LL GIVE YOU A COUPLE OF EXAMPLES
WHO WOULDN'T WANT TO GET INTO CHINA? BIG PLACE, LOTS OF OPPORTUNITY…LOTS OF REGULATION…GOING TO TAKE A LONG TIME…WE SPENT THE LAST FEW YEARS LOBBYING AND LOBBYING AND MEETING AFTER MEETING GETTING TO KNOW THE RIGHT PEOPLE AND FOR THEM TO GET TO KNOW US.
THIS INVOLVES GETTING ON A PLANE AGAIN AND AGAIN AND COMMITMENT FROM THE VERY TOP OF YOUR COMPANY…IT'S NOT A RACE, BUT SOUND COMMERCIAL SENSE.
WHEN CHINA HOLDS THE OLYMPICS IN 2008, IT'S GOING TO BE A VASTLY DIFFERENT PLACE THAN IT IS TODAY…AND TODAY IT'S LIKE NEW YORK.
WE SPENT A LOT OF TIME, BRAINPOWER AND AIRFARES AND WHEN THE RIGHT OPPORTUNITY CAME UP A COUPLE OF YEARS AGO, WE WERE ABLE TO ACT FIRST AND FAST TO SECURE A CHANNEL CALLED CETV AND THEN GET OFFICIAL LANDING RIGHTS INTO GUANDONG.
WE IMPROVED CETV WITH ORIGINAL CONTENT AS WELL AS PROGRAMMING FROM CNN, CARTOON NETWORK, WARNER BROS ETC…NEXT STEP IS TO BRING IN CHINESE STRATEGIC PARTNERS AND FOR VERY LITTLE INVESTMENT YOU HAVE YOURSELVES A CHINA STRATEGY.
WE DID THE SAME WITH VIVA IN GERMANY.
GERMANY IS THE 3RD BIGGEST TV MARKET IN THE WORLD AND HAS THE LUXURY OF 28 FULLY DISTRIBUTED CHANNELS. WE HAVE HAD A STRONG NEWS PRESENCE WITH CNN AND N-TV, OUR JOINT- VENTURE WITH RTL, BUT NO ENTERTAINMENT PRESENCE.
WHEN THE OPPORTUNITY TO INVEST FURTHER IN VIVA CAME ALONG IT PRESENTED THREE OPPORTUNITIES FOR US: WE COULD GET INTO THE MUSIC SPACE - SOMETHING THAT'S COMPLEMENTARY TO CARTOON NETWORK; WE GET SHELFSPACE WITH 2 OF THE 28 “TERESTRIAL??? CHANNELS, AND WE GET A LISTED GERMAN VEHICLE TO EXPAND INSIDE AND OUTSIDE GERMANY…ALL FOR A FRACTION OF BUYING KIRCH.
SINCE WE TOOK CONTROL LAST AUGUST, THE COMPANY HAS MOVED INTO STATE-OF-THE-ART BROADCAST FACILITIES IN COLOGNE INCORPORATING THE MUSIC CHANNEL BUSINESS AND ALSO BRAINPOOL - GERMANY'S LEADING COMEDY PRODUCER WHICH WAS ACQUIRED LAST YEAR BY VIVA….
WE'RE STRENGTHENING THE PROGRAMMING ON THE MAIN VIVA CHANNEL EXPANDING ITS DEMOS AND RATINGS AND ALSO LOOKING TO FURTHER EXPANSION IN EUROPE AND BEYOND. THIS INCLUDES THE U.K., WHERE WE'RE CURRENTLY EVALUATING WHETHER TO LAUNCH A SUITE OF UP TO TEN VIVA CHANNELS ON THE SKY PLATFORM LATER THIS YEAR.
BOTH THESE EXAMPLES COULD EASILY HAVE BEEN REPLICATED BY GRANADA OR CARLTON, BUT WEREN'T...THE TWO COMPANIES WHO HAVE, YOU'VE GUESSED IT...THE BBC AND SKY.
WE ALSO DON'T THINK OF NETWORKS AS A PURELY LINEAR MEDIUM, SO EVERYTHING WE DO IS GEARED TO CROSS-PLATFORM, MULTI-MEDIA EXECUTIONS…
GIVEN THAT MOST COUNTRIES HAVE SCARCE, AND THUS EXPENSIVE, TERRESTRIAL FREQUENCIES, WE BELIEVE IN A MODEL WHERE YOU COMBINE GLOBAL REACH WITH MULTI-PLATFORM EXPOSURE: THIS EXTENDS FROM MAGAZINES, TO MOVIES, THE WEB, BROADBAND AND PERHAPS THE MOST EXCITING MEDIUM OF THE FUTURE - WIRELESS.
IN EVERY NEW INFORMATION TECHNOLOGY, POPULAR BRANDED PROGRAMMING AND CONTENT HELPED PROPEL ITS POPULAR ACCEPTANCE. PRODUCTS THAT ENRICHED THE INDIVIDUAL'S LIFE DROVE EACH NEW ERA. AND EACH NEW PRODUCT ADOPTION WAS FUELLED BY ITS UNIQUE BENEFITS TO THE INDIVIDUAL.
WE HAVE REPEATEDLY SEEN A VIRTUOUS, SYMBIOTIC RELATIONSHIP EMERGE WHENEVER BRANDING AND CONTENT HAS BEEN LINKED WITH NEW ENTERTAINMENT AND COMMUNICATION TECHNOLOGIES. WE BELIEVE THAT WIRELESS IS JUST AT THE BEGINNING OF ITS OWN VIRTUOUS CIRCLE OF DEVELOPMENT AND THAT OUR CONTENT WILL HELP DRIVE THE GROWTH, ACCEPTANCE AND SUSTAINABILITY OF THE NEXT GENERATION OF WIRELESS MULTIMEDIA MOBILE USAGE.
WHERE WERE YOU AT 2.15PM ON SATURDAY FEBRUARY 1ST WHEN THE SHUTTLE EXPLODED OVER TEXAS? LIKE MILLIONS OF OTHERS, I EXPECT YOU WERE READING YOUR BREAKING NEWS SMS MESSAGE ON YOUR CELL PHONE?
BUSINESS WEEK MAGAZINE SAID A SHORT TIME AGO THAT, "CURRENT FORMS OF DATA TRANSMISSION OVER THE PHONE WILL BE VIEWED AS PRIMITIVE - LITTLE MORE THAN THE DIGITAL AGE EQUIVALENT OF MORSE CODE." THAT'S PROBABLY VERY TRUE IF YOU THINK ABOUT WHERE WE'VE COME FROM WITH OUR VAST USE OF SMS TO WHERE WE ARE HEADED NOW…
IT'S ALL ABOUT THE SIZE OF YOUR PIPES…THIS PHONE TODAY IS THE EQUIVALENT OF THE MOTOROLA BRICK OF 20 YEARS AGO…THE WIRELESS PIPES ARE GETTING BIGGER AND THE ABILITY TO PUSH VIDEO THROUGH THEM WILL IMPROVE DRAMATICALLY.
THIS WEEK’S BUSINESS WEEK HAS A FASCINATING ARTICLE ON THE WIRELESS HOME OF THE FUTURE…THEY PREDICT THAT WE’RE 18 MONTHS AWAY FROM WIRELES VOD.
IF YOU WORRY ABOUT THE SMALL SCREEN…YOU'RE FORGETTING WHAT TOMORROW’S VIEWERS ARE VIEWING TODAY? THIS BECOMES THE TELEVISION OF THE FUTURE. IF YOU DON'T BELIEVE ME, WAIT UNTIL YOU SEE THE NEW N-GAGE DEVICE FROM NOKIA, AVAILABLE THIS AUTUMN. LISTEN TO THE SPEC:
"IT IS A HIGH-QUALITY, INTERACTIVE MOBILE GAMING DEVICE WITH EXCELLENT PHONE FEATURES. IT HAS GAMING OPTIMIZED FUNCTIONALITIES AND DESIGN INCLUDING BLUETOOTH, WHICH ENABLES LOCAL MULTIPLAYER GAMING, AND GPRS, WHICH OFFERS THE POSSIBILITY FOR GAMING AND VIDEO STREAMING OVER A WIDE AREA NETWORK. THIS NOKIA PHONE IS GPRS AND WE ARE CURENTLY STREAMING LIVE CNN OVER IT. OTHER KEY FEATURES INCLUDE: A LARGE COLOUR SCREEN, A DIGITAL MUSIC PLAYER AND STEREO FM RADIO AS WELL AS ORGANISATIONAL SOFTWARE FOR CONTACTS AND CONNECTING TO PC APPLICATIONS.
THE N-GAGE ISN'T A PHONE...ITS A MOBILE ENTERTAINMENT AND OFFICE PORTAL.
IF YOU DON'T FANCY THE SOUND OF THAT, WAIT UNTIL YOU SEE THE NEW COLOUR SCREEN BLACKBERRY.WITH MANY SIMILAR FEATURES. THIS IS NOW THE ONLY OFFICE TOOL I CARRY WITH ME AROUND THE WORLD…NO LAPTOP OR EVEN IPAC…I GET EVERYTHING I NEED IN THIS…IMAGINE WHAT THE CONSUMER VERSION WILL OFFER…
OR IMAGINE THIS; WHAT DO SEVEN WELL HEALED 20-YEAR-OLD MEN ON A STAG WEEKEND TALK ABOUT DURING A TWO-HOUR MINI BUS RIDE FROM THE AIRPORT TO THE SKI RESORT? I’LL TELL YOU, THEY ALL SHOWED OFF THE LATEST GMS TRI-BAND PHONES AND PALM PILOTS, BOASTED ABOUT THEIR BLACKBERRIES, MARVELLED AT HOW BLUE TOOTH MADE THEIR SOCIAL LIVES EASIER, WHO HAD THE BEST GAMES AND WHO COULD WATCH MOVIE CLIPS AND THE BEST WAY TO GET NEWS AND ORDER GOODS ONLINE. I HAD THE PLEASURE OF BEING THE AGED CUCKOO IN THE NEST, MAKING THE NUMBERS ON THE RIDE INTO THE MOUNTAINS, IT WAS MOST ENLIGHTENING.
IT'S NO SUPRISE THAT THE LATEST BBC DIGITAL RADIO STATION WASN'T CALLED RADIO 7, BUT BBC 7. IT'S NOT RADIO, BUT A NEW FORM OF TELEVISUAL ENTERTAINMENT.
I FULLY EXPECT SKY TO ALSO BE A MAJOR PLAYER IN THIS SPACE, BOTH THROUGH MOBILE AND ALSO DIGITAL RADIO. DIGITAL RADIO HAS SOME PRETTY BIG PIPES THAT ALLOW YOU TO PUSH CONTENT THROUGH THEM...RATHER LIKE A SATELLITE! CHARLES DUNSTONE OF CARPHONE WAREHOUSE GOBBLED UP A LARGE PROPORTION OF THIS DATA SPACE WHEN THE DIGITAL LICENCES WERE AWARDED AND I BET THAT IN THE FUTURE THEY WILL MAKE HIM AN EVEN RICHER MAN!
LINEAR BROADCAST NETWORKS LIKE ITV ARE IN DANGER OF BECOMING THE EQUIVALENT OF FIXED LINE TELEPHONY OPERATORS.
THE FUTURE WILL ALSO BE ABOUT SUBSCRIBERS AND HAVING DIRECT BILLING RELATIONSHIPS. SUBSCRIBERS ARE ANNUITIES AND AOLTW HAS MORE SUBSCRIBERS, SOME 150M THAN ANYONE ELSE…IN FACT, THE NEXT BIGGEST ARE DEUTSCHE TELECOM AND VODAPHONE, WHO HAVE AROUND 90M EACH…THERE'S THAT WIRELESS CONNECTION AGAIN.
BUT BACK TO THE U.K. AND THE FUTURE SHAPE OF THE TELEVISION LANDSCAPE.
THERE'S BEEN MUCH SPECULATION SINCE THE PUBLISHING OF THE DRAFT COMMUNICATIONS BILL ABOUT WHAT MAY HAPPEN AND WHO MAY BUY WHOM.
ANYONE WHO'S ANYONE HAS BEEN MENTIONED IN THE POSSIBLE ACQUISITION OF ITV AND CHANNEL 5…INCLUDING AOLTW.
WE DON'T SEE OURSELVES IN THAT PICTURE AT THE MOMENT…NOT BECAUSE OF OUR INTERNAL ISSUES AND NOT BECAUSE OF VALUATIONS, BUT MORE ON A STRATEGIC POINT…IT'S HARD TO SEE FROM WHERE I SIT EXACTLY HOW ITV FITS INTO THE FUTURE SHAPE OF BRITISH TELEVISION.
MANY PUNDITS SEEM TO ME TO HAVE MISSED THE POINT WHEN DISCUSSING THE COMMUNICATIONS BILL. WHAT IT DOES IS LAY DOWN THE GUIDELINES FOR AN ALL-OUT SCRAP BETWEEN THE BBC AND SKY.
I BELIEVE THE FUTURE OF BRITISH TELEVISION LIES MORE IN THE HANDS OF GREG DYKE AND TONY BALL THAN ANYONE ELSE. THE GAME IS A BATTLE OF THE GIANTS, MAN UTD VS ARSENAL - GREG AS SIR ALEX FERGUSON AND TONY AS THE ERUDITE ARSENE WENGER (IMAGINE LORRAINE HEGGESSEY AS DAVID BECKHAM!). THE GAME IS GOING TO BE REFEREED BY THE LITTLE HOGWARTS WIZARD, STEPHEN CARTER. THIS IS NOT A GAME OF QUIDDITCH THOUGH, BUT ONE WHICH MAY WELL BE PLAYED ON A PITCH CALLED FREEVIEW.
THE STAKES ARE VERY SIMPLE. GREG HAS A CHARTER RENEWAL AROUND THE CORNER AND DESPERATELY NEEDS TO SHOW THAT THE DIGITAL BBC IS WORTH ITS LICENCE FEE.
THE MAIN WAY HE CAN ACHIEVE THIS IS THROUGH LAUNCHING HIS RAFT OF DIGITAL CHANNELS, WHICH HE HAS BEEN ALLOWED TO DO SO FREELY.
EVEN WITH THE OVER EXAGGERATED HICCUP OVER BBC 3, THIS COURSE OF ACTION IS NOT JUST LAMENTABLE BUT WILL BE JUDGED WITH HIND-SIGHT TO HAVE BEEN MISGUIDED.
THE 800-POUND BBC GORILLA HAS BEEN GIVEN STEROIDS AND ALLOWED TO REEK HAVOC IN THE BLUE PETER GARDEN OF BROADCASTING.
THIS HAS IMPACTED ALL OTHER MULTI-CHANNEL PROVIDERS AND THE HEART OF U.K. INDEPENDENT PRODUCTION AND SHOULD BE KEPT IN CHECK BEFORE THE BBC REALLY STARTS ABUSING ITS POWER.
WE'VE SEEN EXAMPLES OF THIS IN THE KIDS SPACE, WHERE THE BBC NOW USES ITS IMMENSE MUSCLE OF BEING ABLE TO OFFER ANALOGUE AND DIGITAL PLATFORMS TO PRODUCERS AS A WAY OF EITHER EXCLUDING OR PRICING OUT THE COMMERCIAL COMPETITORS.
PUT IT ANOTHER WAY.
IS IT RIGHT THAT THE BBC CAN TELL A SYNDICATOR OR PRODUCER THAT THE PRICE NOW ALSO INCLUDES THE DIGITAL CHANNELS AND PENALISES SOMEONE FROM SELLING JUST TO THE ANALOGUE TERRESTRIAL.
AND SHOULD THE BBC BE ALLOWED TO BUNDLE THEIR DIGITAL CHANNELS WITH ACQUISITIONS AND COMMISSIONS FOR THEIR ANALOGUE CHANNELS?
NOT ONLY DOES THIS IMPACT MULTICHANNEL OPERATORS AND PRODUCERS BUT ITV, CHANNEL FOUR AND CHANNEL FIVE…THESE GUYS NOT ONLY DON'T HAVE THE FINANCIAL MUSCLE, THEY DON'T HAVE THE BANDWIDTH TO COMPETE ON AN EVEN PLAYING FIELD WITH THE BBC…SO THEY ARE GETTING AND WILL CONTINUE TO GET MARGINALIZED.
THIS IS MOST CRUCIAL FOR ITV, WHO AS A MAINSTREAM BROADCASTER HAS THE MOST TO LOSE.
INDEED, A RECENT ZENITH REPORT SHOWED THAT ITV WASN'T LOSING MANY VIEWERS TO THE ANALOGUE TERRESTRIAL BBC-1, BUT THE PLETHORA OF MULTI-CHANNELS IN DIGITAL. REMEMBER OVER CHRISTMAS THE MULTI-CHANNEL SERVICES OUT PERFORMED ITV IF THAT IS NOT A WAKEUP CALL THEN I'M SLEEPING BEAUTY.
ITV JUST DOESN'T COMMAND ENOUGH SHELF-SPACE, AND DOESN'T HAVE THE SKILL SET TO WORK IN THIS ENVIRONMENT. THE SAME IS TRUE OF CHANNEL FOUR AND CHANNEL FIVE, BUT THEY'RE BOTH REALLY ONLY FIGHTING FOR THE SCRAPS.
THE ONE ORGANISATION THAT HAS THE PHYSICAL, FINANCIAL AND INTELLECTUAL BANDWIDTH TO STAND UP TO THE BBC IS BSKYB.
BUT WHY SHOULD TONY CARE? AS I MENTIONED, THE ISSUE COULD BE FREEVIEW. IF GREG CAN GET FREEVIEW TO WORK AND BECOME WIDELY DISTRIBUTED, THEN HE HAS A BETTER ARGUMENT IN THE CHARTER RENEWAL PROCESS.
IF FREEVIEW WORKS, IT'S FEASIBLE THAT THE U.K. WILL START TO RESEMBLE PRESENT-DAY GERMANY WITH 28-30 WIDELY DISTRIBUTED TERRESTRIAL CHANNELS. THESE CHANNELS COMMAND SERIOUS REVENUE STREAMS AND PROVIDE A WEALTH AND VARIETY OF PROGRAMMING, INCLUDING THINGS LIKE SPORTS RIGHTS.
WHEN YOU HAVE A MARKET DYNAMIC SUCH AS EXISTS IN GERMANY TODAY, THE APPETITE FOR A PAY-TV PLATFORM IS GREATLY DIMINISHED…JUST LOOK AT THE PROBLEMS THAT PREMIERE HAS SUFFERED IN GERMANY.
SO TONY IS LOOKING AT THE POSSIBILITY THAT IF FREEVIEW WORKS THE OFFERING TO THE PUBLIC COULD GREATLY DIMINISH THE APPEAL OF SKY.
THAT'S WHY YOU CURRENTLY HAVE A SITUATION WHERE, THE BBC CHANNELS ASIDE, THE OFFERING IS RELATIVELY WEAK.
SKY BEING THE SMARTEST KID ON THE BLOCK IS ALSO PLAYING BOTH SIDES AND IS PERFECTLY POISED TO DOMINATE COMMERCIAL TV IN THE FUTURE.
THEY'RE IN THE MARKETING ALLIANCE FOR FREEVIEW, THEY HAVE CHANNEL CAPACITY ON FREEVIEW, AND BEST OF ALL, THEY CAN BUY CHANNEL FIVE TO GIVE THEM AN ANALOGUE SHOP WINDOW IF NEEDED.
GIVEN ALL OF THAT, WHO WOULD WANT TO BUY ITV? AND HAVE PITY FOR CHANNEL FOUR WHO CAN'T BE BOUGHT…YET. MY MONEY’S ON CHANNEL FOUR COMING ON THE BLOCK WITHIN THE NEXT FIVE YEARS - IT'S THE ONLY WAY IT CAN SURVIVE AND I'M SURE THE GOVERNMENT WILL ACT ONCE THE ITV ISSUE HAS BEEN PUT TO BED.
SO WHAT FUTURE FOR THE NEW ITV? DESPITE WHAT I'VE SAID, THEY WILL STILL REMAIN A MAJOR FORCE. IN MANY WAYS THEY'RE AKIN TO OUR OWN THREE LETTER COMPANY, AOL.
BOTH HAVE HAD IT GOOD FOR TOO LONG AND NOW FACE REAL COMPETITION AND THE NEED TO REASSESS THEIR BUSINESS MODEL. WE'RE DOING THAT WITH AOL, AND IF ITV IS TO COMPETE, IT TO WILL HAVE TO CHANGE. I THINK IT SHOULD STOP BLEATING AND START BEATING THE BBC.
IT CAN DO THIS BY CONCENTRATING ONCE MORE ON ITS STRONG REGIONAL INFRASTRUCTURE..MATCHED ONLY BY THE BBC. ITV SHOULD FOLLOW THE U.S. NETWORK MODEL OF O'N'O'S AND BUILD STRONG REGIONAL PROGRAMMING UNDERNEATH THE NETWORK BRAND.
CHANNEL FOUR NEEDS TO BE PROTECTED OR PRIVATISED AND ALLOWED TO FLOURISH AS THE THIRD ALTERNATIVE. CHANNEL FIVE WILL BE BOUGHT, IT'S JUST A QUESTION OF TIME AND BY WHOM, WHILST SKY SHOULD BE APPLAUDED.
SKY TOOK THE CHANCES AND BET EVERYTHING ON MAKING A MARKET. IT'S NOT ITS FAULT THAT IT HAS THE BRIGHTEST TALENT RUNNING IT, OR THAT ITS COMPETITORS WERE SO INEPT.
IT'S A GREAT BRITISH TRAIT TO CRY FOUL WHEN SOMEONE MAKES A SUCCES OF SOMETHING. SKY IS THE U.K.'S BEACON OF COMMERCIAL SUCCESS IN THIS WORLD AND SHOULDN'T BE UNDULY PUNISHED FOR THAT SUCCESS AND INNOVATION. I SAY THAT AND I REALLY MEAN IT...AND FOR YOU CYNICS OUT THERE, NO, I'M NOT IN THE MIDDLE OF ANY RENEGOTIATIONS WITH THEM!
ONLY THE BBC SHOULD BE TIGHTLY REGULATED AND MADE TO ACT IN ITS PROPER PUBLIC SERVICE REMIT. IT CANNOT BE ALLOWED TO RUN UNHINGED IN A FUTURE WHERE SO MUCH IS AT STAKE.
SO THERE YOU HAVE IT..AN INSULAR U.K. INDUSTRY DOMINATED BY TWO GIANTS WHO NOT ONLY CONTROL LIFE DOMESTICALLY, BUT TRADITIONALLY HAVE HAD THE VISION AND WHEREWITHAL TO LOOK ABROAD.
THE ONLY WAY OUT FOR THE INDUSTRY IS TO STOP THE NAVEL GAZING, REALISE YOUR POSITION IN THE NEW WORLD ORDER AND HIRE SOME TALENT THAT UNDERSTANDS HOW TO ACHIEVE THAT. NO MORE IN-BREEDING…AND WATCH WHO WINS THE FREEVIEW BATTLE.
MANY THANKS FOR YOUR TIME.
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TWO FISH IN A TANK, ONE TURNS TO THE OTHER AND SAYS, "DO YOU KNOW HOW TO DRIVE THIS?"…
TWO PARROTS ON A PERCH. ONE TURNS TO THE OTHER AND SAYS, "DO YOU SMELL FISH?"…
TWO ITV CHAIRMAN LOOKING FOR A CEO, ONE TURNS TO THE OTHER AND SAYS, "HOW DID WE LET DAWN AIREY GET AWAY?"…
OKAY, SO THE LAST JOKE WASN'T FUNNY….SOME OF YOU MAY ARGUE THAT NONE OF THEM WERE FUNNY…….
AND YOU WOULD BE RIGHT ….AND THAT'S THE POINT, THE STATE OF THE U.K. TELEVISION INDUSTRY TODAY…AND ITV IN PARTICULAR IS A GOOD REASON TO HANG OUR COLLECTIVE HEADS IN SHAME.
MANY OF YOU KNOW MY OBSESSION WITH EXPOSING THE INSULAR NATURE OF U.K. BROADCASTING, AND SO TONIGHT I THOUGHT AMONG OTHER THINGS I'D USE THIS OPPORTUNITY TO SHED SOME LIGHT ON WHY WE FIND OURSELVES IN THIS POSITION AND WHAT THE FUTURE MAY HOLD.
I ALSO WANT TO ADDRESS THE GROWING THREAT FROM WHAT SOME COMMENTATORS REFER TO AS THE 'AXIS OF EVIL' AND BY THAT I MEAN THE BBC AND BSKYB. OKAY, IT'S NOT REALLY AN 'AXIS OF EVIL'...SKY ARE PERFECTLY REASONABLE PEOPLE!
I'LL ALSO TAKE A RUN AT THE COMMUNICATIONS BILL AND THE EFFECT IT WILL HAVE ON THE TELECOMMUNICATIONS INDUSTRY, WHILE ALSO DRAWING SOME UNCOMFORTABLE PARALLELS BETWEEN THE TROUBLES OF THE GERMAN MEDIA LANDSCAPE AND THE LEMMING LIKE TENDENCIES OF COMMERCIAL NETWORK TELEVISION INDUSTRY HERE IN BRITAIN.
BUT FIRST A LITTLE PERSPECTIVE…
WHEN YOU READ THE WEEKLY TRADES, YOU WOULD THINK WE WERE THE CENTRE OF THE TV UNIVERSE…
I HATE TO THE BE THE SPOIL SPORT .BUT THE TRUTH IS 'WE ARE NOT'.
AM I QUALIFIED TO SAY THIS? POSSIBLY… I HAVE THE PRIVILEGE OF HEADING-UP A COMPANY - TBS INTERNATIONAL - THAT UNDERSTANDS THE SAYING 'GLOBAL REACH, LOCAL TOUCH BUT MORE IMPORTANTLY BACKS IT ENTHUSIASTICALLY IN WORDS, ACTIONS AND RESOURCES.
IN JUST 10 YEARS WE HAVE TAKEN CARTOON NETWORK INTO 17 LANGUAGES, TCM INTO NINE, BOOMERANG AND TNT INTO THREE LANGUAGES EACH, PLUS INVESTMENTS LIKE VIVA MUSIC IN GERMANY AND CETV IN CHINA. ADD TO THAT CNN'S NINE LANGUAGES ACROSS 20 PLUS TELEVISION AND INTERNET SERVICES OPERATED OUTSIDE OF THE UNITED STATES AND YOU HAVE AN IMPRESSIVE PORTFOLIO OF BRANDS AND SERVICES.
ANYWAY I DIGRESS
I USED TO FIND THE NOTION THAT THE UK WAS THE CENTRE OF THE UNIVERSE LOOKING FROM THE THAMES EMBANKMENT, NORWICH AND MANCHESTER SOMEWHAT INSULTING, THEN I FOUND IT IRRITATING AND NOW AMUSING.
I ALSO HAD THE SAME FEELINGS WHEN BROADCASTING PEOPLE……………..PARTICULARLY FROM THE U.K. WERE SO DISPARAGING TO THE MULTI-CHANNEL SECTOR.
MY FIRST JOB, AFTER MOVING TO LONDON, WAS WITH MUSIC BOX - EUROPE'S FIRST PAN-REGIONAL MUSIC CHANNEL, OWNED BY VIRGIN, GRANADA AND YORKSHIRE AND THE PRECURSOR TO SUPER CHANNEL.
TWO THINGS STRUCK ME THEN AS GREAT EXAMPLES OF JUST HOW BADLY THE U.K. MEDIA INDUSTRY DOESN'T GET IT IN TERMS OF COMPETING ON THE WORLD STAGE.
THE FIRST WAS THE ACTT. BACK THEN WE STILL HAD A UNIONISED TELEVISION INDUSTRY, BUT WORKING IN THIS "NEW WORLD" OF SATELLITE BACK IN THE 80'S YOU WERE BANNED FROM GAINING FULL ACTT MEMBERSHIP UNTIL YOU'D SERVED A FEW YEARS’ PROBATION. A NEAT LITTLE TRICK ON THE UNIONS PART TO CONTROL THE FLOW OF LABOUR INTO TERRESTRIAL, BUT ONE WHICH RESULTED IN MANY SMART PEOPLE ABANDONING TERRESTRIAL FOREVER.
RESISTANCE TO NEW IDEAS AND NEW MEDIUMS IS A TRAIT THAT RUNS THROUGH BRITISH BROADCASTING, WITH A COUPLE OF NOTABLE EXCEPTIONS, THE BBC AND SKY. THE OTHER ENDURING MEMORY FOR ME OF THAT TIME WAS THE LAUNCH OF SUPER CHANNEL.
SUPER CHANNEL WAS SET UP BY THE CONFEDERATION OF ITV COMPANIES TO SHOWCASE THE BEST OF BRITISH BROADCASTING TO EUROPE…PISS-UPS AND BREWERIES SPRING TO MIND.
IF EVER THERE WAS A SIGN THAT ITV DIDN'T HAVE A CLUE ABOUT WHAT TO DO OUTSIDE ITS CORE BUSINESS, THIS WAS IT…TO BE REPEATED LATER WITH BSB, AND MORE RECENTLY WITH ITV DIGITAL.
FEW COMPANIES GET THE CHANCE TO SCORE A HAT-TRICK OF OWN GOALS AND CONTINUE TO PLAY IN THE TOP DIVISION…………………. AND THAT'S THE CORE OF WHAT I'M SAYING HERE TONIGHT.
ANYWAY, ENOUGH OF THE PAST…AS I'VE ALREADY SAID TODAY I GET TO OVERSEE SOME 40+ NETWORKS AND JOINT VENTURES WITH 32 OFFICES ACROSS THE WORLD.
WHAT MY BUSINESS IS ABOUT IS SCALE AND REACH. CNN IS AVAILABLE IN EVERY COUNTRY IN THE WORLD BAR THREE…IRAN, IRAQ AND NORTH KOREA….
WATCHED, READ AND LISTENED TO BY A BILLION PEOPLE ON TWO POINT SIX BILLION SCREENS... THAT, MY FRIENDS, IS SCALE. NOT ONLY DO WE COVER THE WORLD WITH CNN, WE'VE ALSO BEGUN TO FORGE IN-COUNTRY JOINT VENTURES SUCH AS CNN+ IN SPAIN AND CNN TURK IN TURKEY. THE LATEST, CNNJ - A JOINT VENTURE WITH TV-ASAHI, LAUNCHED IN JAPAN LAST WEEK.
CARTOON NETWORK ENJOYS NEARLY AS WIDE-SPREAD GLOBAL DISTRIBUTION AS CNN AND RACKS UP ITS OWN IMPRESSIVE STATISTICS…NOT ONLY IS IT THE NUMBER ONE KIDS’ CHANNEL AROUND THE WORLD, IN LATIN AMERICA, IT'S THE NUMBER ONE MULTICHANNEL NETWORK IN ALL DEMOS!
THINK GLOBAL, ACT LOCAL…
IF IT'S THAT SIMPLE, WHY AREN'T CARLTON, GRANADA AND OTHERS DOING IT? I CAN THINK OF TWO BROADCASTERS, SKY AND THE BBC WHO ACTIVELY PURSUE A GLOBAL STRATEGY. YOU GET THE IDEA THAT THESE TWO COMPANIES ARE BECOMING A CENTRAL THEME HERE!
BUT I CAN SEE FROM THE LOOK ON YOUR FACES THAT YOUR THINKING ‘THAT’S IRONIC AND EASY FOR YOU TO SAY BEING PART OF A GLOBAL COMPANY THAT LOST $100BN LAST YEAR" AND I DO WANT TO SPEND A COUPLE OF MINUTES TALKING ABOUT THE STATE OF AOLTW.
IT'S TRUE THAT EVERYTIME MY BOSS PHONES, I ASK MY ASSISTANT TO TAKE HIS OR HER NAME, SO GREAT HAS BEEN THE MANAGEMENT CHANGES RECENTLY. BUT WHAT IS IMPORTANT TO UNDERSTAND, IS THAT BEHIND THE HEADLINES, WE'RE STILL THE WORLD'S BIGGEST MEDIA COMPANY, THROWING OFF $9BN IN EBITDA AND FOUR POINT TWO BILLION DOLLARS IN FREE CASH FLOW LAST YEAR.
AOL IS VERY PROFITABLE AND ONE OF THE LARGEST REVENUE GENERATORS FOR AOLTW. I BET TONY BALL WOULDN'T MIND HAVING 33 MILLION SUBSCRIBERS! WARNER BROS GREW REVENUES BY MORE THAN 20% YEAR-ON-YEAR AND WE WERE IN DOUBLE DIGIT GROWTH ALONG WITH SISTER DIVISIONS. EVEN THE MUSIC COMPANY OUTPERFORMED ITS PEERS.
IN THE U.K., AOLTW’S REVENUES EASILY OUTSTRIP THOSE OF A COMBINED GRANADA AND CARLTON…WITH OUR WIDE-RANGE OF ASSETS, FROM WARNER VILLAGE CINEMAS TO IPC AND AOL, WE’RE PROBABLY ONE OF THE TOP TEN U.K. ADVERTISERS ALSO DID YOU KNOW THAT IPC SELLS ON AVERAGE 11 MAGAZINES A SECOND IN THE U.K. FROM ITS 80+ TITLES AND 73% OF U.K. WOMEN AND 55% OF U.K. MEN READ AN IPC TITLE.
SO, DESPITE WHAT YOU READ - AND WE'RE NOT WITHOUT OUR PROBLEMS - AOLTW IS VERY MUCH ALIVE AND KICKING AND SLOWLY BEING RE-ENGINEERED.
HERE'S THE THING, YOU DON'T HAVE TO SPEND A LOT OF MONEY TO ACHIEVE RESULTS.
WHAT YOU HAVE TO DO IS CHANGE THE MINDSET. THE ITV COMPANIES IN THE PAST HAVE ACTED LIKE THE GOOD OLD ACTT…YOU CAN ARGUE ABOUT REGULATION, THE AUCTION PROCESS ETC…BUT REALLY IT'S ABOUT A STATE OF MIND. I'LL GIVE YOU A COUPLE OF EXAMPLES
WHO WOULDN'T WANT TO GET INTO CHINA? BIG PLACE, LOTS OF OPPORTUNITY…LOTS OF REGULATION…GOING TO TAKE A LONG TIME…WE SPENT THE LAST FEW YEARS LOBBYING AND LOBBYING AND MEETING AFTER MEETING GETTING TO KNOW THE RIGHT PEOPLE AND FOR THEM TO GET TO KNOW US.
THIS INVOLVES GETTING ON A PLANE AGAIN AND AGAIN AND COMMITMENT FROM THE VERY TOP OF YOUR COMPANY…IT'S NOT A RACE, BUT SOUND COMMERCIAL SENSE.
WHEN CHINA HOLDS THE OLYMPICS IN 2008, IT'S GOING TO BE A VASTLY DIFFERENT PLACE THAN IT IS TODAY…AND TODAY IT'S LIKE NEW YORK.
WE SPENT A LOT OF TIME, BRAINPOWER AND AIRFARES AND WHEN THE RIGHT OPPORTUNITY CAME UP A COUPLE OF YEARS AGO, WE WERE ABLE TO ACT FIRST AND FAST TO SECURE A CHANNEL CALLED CETV AND THEN GET OFFICIAL LANDING RIGHTS INTO GUANDONG.
WE IMPROVED CETV WITH ORIGINAL CONTENT AS WELL AS PROGRAMMING FROM CNN, CARTOON NETWORK, WARNER BROS ETC…NEXT STEP IS TO BRING IN CHINESE STRATEGIC PARTNERS AND FOR VERY LITTLE INVESTMENT YOU HAVE YOURSELVES A CHINA STRATEGY.
WE DID THE SAME WITH VIVA IN GERMANY.
GERMANY IS THE 3RD BIGGEST TV MARKET IN THE WORLD AND HAS THE LUXURY OF 28 FULLY DISTRIBUTED CHANNELS. WE HAVE HAD A STRONG NEWS PRESENCE WITH CNN AND N-TV, OUR JOINT- VENTURE WITH RTL, BUT NO ENTERTAINMENT PRESENCE.
WHEN THE OPPORTUNITY TO INVEST FURTHER IN VIVA CAME ALONG IT PRESENTED THREE OPPORTUNITIES FOR US: WE COULD GET INTO THE MUSIC SPACE - SOMETHING THAT'S COMPLEMENTARY TO CARTOON NETWORK; WE GET SHELFSPACE WITH 2 OF THE 28 “TERESTRIAL??? CHANNELS, AND WE GET A LISTED GERMAN VEHICLE TO EXPAND INSIDE AND OUTSIDE GERMANY…ALL FOR A FRACTION OF BUYING KIRCH.
SINCE WE TOOK CONTROL LAST AUGUST, THE COMPANY HAS MOVED INTO STATE-OF-THE-ART BROADCAST FACILITIES IN COLOGNE INCORPORATING THE MUSIC CHANNEL BUSINESS AND ALSO BRAINPOOL - GERMANY'S LEADING COMEDY PRODUCER WHICH WAS ACQUIRED LAST YEAR BY VIVA….
WE'RE STRENGTHENING THE PROGRAMMING ON THE MAIN VIVA CHANNEL EXPANDING ITS DEMOS AND RATINGS AND ALSO LOOKING TO FURTHER EXPANSION IN EUROPE AND BEYOND. THIS INCLUDES THE U.K., WHERE WE'RE CURRENTLY EVALUATING WHETHER TO LAUNCH A SUITE OF UP TO TEN VIVA CHANNELS ON THE SKY PLATFORM LATER THIS YEAR.
BOTH THESE EXAMPLES COULD EASILY HAVE BEEN REPLICATED BY GRANADA OR CARLTON, BUT WEREN'T...THE TWO COMPANIES WHO HAVE, YOU'VE GUESSED IT...THE BBC AND SKY.
WE ALSO DON'T THINK OF NETWORKS AS A PURELY LINEAR MEDIUM, SO EVERYTHING WE DO IS GEARED TO CROSS-PLATFORM, MULTI-MEDIA EXECUTIONS…
GIVEN THAT MOST COUNTRIES HAVE SCARCE, AND THUS EXPENSIVE, TERRESTRIAL FREQUENCIES, WE BELIEVE IN A MODEL WHERE YOU COMBINE GLOBAL REACH WITH MULTI-PLATFORM EXPOSURE: THIS EXTENDS FROM MAGAZINES, TO MOVIES, THE WEB, BROADBAND AND PERHAPS THE MOST EXCITING MEDIUM OF THE FUTURE - WIRELESS.
IN EVERY NEW INFORMATION TECHNOLOGY, POPULAR BRANDED PROGRAMMING AND CONTENT HELPED PROPEL ITS POPULAR ACCEPTANCE. PRODUCTS THAT ENRICHED THE INDIVIDUAL'S LIFE DROVE EACH NEW ERA. AND EACH NEW PRODUCT ADOPTION WAS FUELLED BY ITS UNIQUE BENEFITS TO THE INDIVIDUAL.
WE HAVE REPEATEDLY SEEN A VIRTUOUS, SYMBIOTIC RELATIONSHIP EMERGE WHENEVER BRANDING AND CONTENT HAS BEEN LINKED WITH NEW ENTERTAINMENT AND COMMUNICATION TECHNOLOGIES. WE BELIEVE THAT WIRELESS IS JUST AT THE BEGINNING OF ITS OWN VIRTUOUS CIRCLE OF DEVELOPMENT AND THAT OUR CONTENT WILL HELP DRIVE THE GROWTH, ACCEPTANCE AND SUSTAINABILITY OF THE NEXT GENERATION OF WIRELESS MULTIMEDIA MOBILE USAGE.
WHERE WERE YOU AT 2.15PM ON SATURDAY FEBRUARY 1ST WHEN THE SHUTTLE EXPLODED OVER TEXAS? LIKE MILLIONS OF OTHERS, I EXPECT YOU WERE READING YOUR BREAKING NEWS SMS MESSAGE ON YOUR CELL PHONE?
BUSINESS WEEK MAGAZINE SAID A SHORT TIME AGO THAT, "CURRENT FORMS OF DATA TRANSMISSION OVER THE PHONE WILL BE VIEWED AS PRIMITIVE - LITTLE MORE THAN THE DIGITAL AGE EQUIVALENT OF MORSE CODE." THAT'S PROBABLY VERY TRUE IF YOU THINK ABOUT WHERE WE'VE COME FROM WITH OUR VAST USE OF SMS TO WHERE WE ARE HEADED NOW…
IT'S ALL ABOUT THE SIZE OF YOUR PIPES…THIS PHONE TODAY IS THE EQUIVALENT OF THE MOTOROLA BRICK OF 20 YEARS AGO…THE WIRELESS PIPES ARE GETTING BIGGER AND THE ABILITY TO PUSH VIDEO THROUGH THEM WILL IMPROVE DRAMATICALLY.
THIS WEEK’S BUSINESS WEEK HAS A FASCINATING ARTICLE ON THE WIRELESS HOME OF THE FUTURE…THEY PREDICT THAT WE’RE 18 MONTHS AWAY FROM WIRELES VOD.
IF YOU WORRY ABOUT THE SMALL SCREEN…YOU'RE FORGETTING WHAT TOMORROW’S VIEWERS ARE VIEWING TODAY? THIS BECOMES THE TELEVISION OF THE FUTURE. IF YOU DON'T BELIEVE ME, WAIT UNTIL YOU SEE THE NEW N-GAGE DEVICE FROM NOKIA, AVAILABLE THIS AUTUMN. LISTEN TO THE SPEC:
"IT IS A HIGH-QUALITY, INTERACTIVE MOBILE GAMING DEVICE WITH EXCELLENT PHONE FEATURES. IT HAS GAMING OPTIMIZED FUNCTIONALITIES AND DESIGN INCLUDING BLUETOOTH, WHICH ENABLES LOCAL MULTIPLAYER GAMING, AND GPRS, WHICH OFFERS THE POSSIBILITY FOR GAMING AND VIDEO STREAMING OVER A WIDE AREA NETWORK. THIS NOKIA PHONE IS GPRS AND WE ARE CURENTLY STREAMING LIVE CNN OVER IT. OTHER KEY FEATURES INCLUDE: A LARGE COLOUR SCREEN, A DIGITAL MUSIC PLAYER AND STEREO FM RADIO AS WELL AS ORGANISATIONAL SOFTWARE FOR CONTACTS AND CONNECTING TO PC APPLICATIONS.
THE N-GAGE ISN'T A PHONE...ITS A MOBILE ENTERTAINMENT AND OFFICE PORTAL.
IF YOU DON'T FANCY THE SOUND OF THAT, WAIT UNTIL YOU SEE THE NEW COLOUR SCREEN BLACKBERRY.WITH MANY SIMILAR FEATURES. THIS IS NOW THE ONLY OFFICE TOOL I CARRY WITH ME AROUND THE WORLD…NO LAPTOP OR EVEN IPAC…I GET EVERYTHING I NEED IN THIS…IMAGINE WHAT THE CONSUMER VERSION WILL OFFER…
OR IMAGINE THIS; WHAT DO SEVEN WELL HEALED 20-YEAR-OLD MEN ON A STAG WEEKEND TALK ABOUT DURING A TWO-HOUR MINI BUS RIDE FROM THE AIRPORT TO THE SKI RESORT? I’LL TELL YOU, THEY ALL SHOWED OFF THE LATEST GMS TRI-BAND PHONES AND PALM PILOTS, BOASTED ABOUT THEIR BLACKBERRIES, MARVELLED AT HOW BLUE TOOTH MADE THEIR SOCIAL LIVES EASIER, WHO HAD THE BEST GAMES AND WHO COULD WATCH MOVIE CLIPS AND THE BEST WAY TO GET NEWS AND ORDER GOODS ONLINE. I HAD THE PLEASURE OF BEING THE AGED CUCKOO IN THE NEST, MAKING THE NUMBERS ON THE RIDE INTO THE MOUNTAINS, IT WAS MOST ENLIGHTENING.
IT'S NO SUPRISE THAT THE LATEST BBC DIGITAL RADIO STATION WASN'T CALLED RADIO 7, BUT BBC 7. IT'S NOT RADIO, BUT A NEW FORM OF TELEVISUAL ENTERTAINMENT.
I FULLY EXPECT SKY TO ALSO BE A MAJOR PLAYER IN THIS SPACE, BOTH THROUGH MOBILE AND ALSO DIGITAL RADIO. DIGITAL RADIO HAS SOME PRETTY BIG PIPES THAT ALLOW YOU TO PUSH CONTENT THROUGH THEM...RATHER LIKE A SATELLITE! CHARLES DUNSTONE OF CARPHONE WAREHOUSE GOBBLED UP A LARGE PROPORTION OF THIS DATA SPACE WHEN THE DIGITAL LICENCES WERE AWARDED AND I BET THAT IN THE FUTURE THEY WILL MAKE HIM AN EVEN RICHER MAN!
LINEAR BROADCAST NETWORKS LIKE ITV ARE IN DANGER OF BECOMING THE EQUIVALENT OF FIXED LINE TELEPHONY OPERATORS.
THE FUTURE WILL ALSO BE ABOUT SUBSCRIBERS AND HAVING DIRECT BILLING RELATIONSHIPS. SUBSCRIBERS ARE ANNUITIES AND AOLTW HAS MORE SUBSCRIBERS, SOME 150M THAN ANYONE ELSE…IN FACT, THE NEXT BIGGEST ARE DEUTSCHE TELECOM AND VODAPHONE, WHO HAVE AROUND 90M EACH…THERE'S THAT WIRELESS CONNECTION AGAIN.
BUT BACK TO THE U.K. AND THE FUTURE SHAPE OF THE TELEVISION LANDSCAPE.
THERE'S BEEN MUCH SPECULATION SINCE THE PUBLISHING OF THE DRAFT COMMUNICATIONS BILL ABOUT WHAT MAY HAPPEN AND WHO MAY BUY WHOM.
ANYONE WHO'S ANYONE HAS BEEN MENTIONED IN THE POSSIBLE ACQUISITION OF ITV AND CHANNEL 5…INCLUDING AOLTW.
WE DON'T SEE OURSELVES IN THAT PICTURE AT THE MOMENT…NOT BECAUSE OF OUR INTERNAL ISSUES AND NOT BECAUSE OF VALUATIONS, BUT MORE ON A STRATEGIC POINT…IT'S HARD TO SEE FROM WHERE I SIT EXACTLY HOW ITV FITS INTO THE FUTURE SHAPE OF BRITISH TELEVISION.
MANY PUNDITS SEEM TO ME TO HAVE MISSED THE POINT WHEN DISCUSSING THE COMMUNICATIONS BILL. WHAT IT DOES IS LAY DOWN THE GUIDELINES FOR AN ALL-OUT SCRAP BETWEEN THE BBC AND SKY.
I BELIEVE THE FUTURE OF BRITISH TELEVISION LIES MORE IN THE HANDS OF GREG DYKE AND TONY BALL THAN ANYONE ELSE. THE GAME IS A BATTLE OF THE GIANTS, MAN UTD VS ARSENAL - GREG AS SIR ALEX FERGUSON AND TONY AS THE ERUDITE ARSENE WENGER (IMAGINE LORRAINE HEGGESSEY AS DAVID BECKHAM!). THE GAME IS GOING TO BE REFEREED BY THE LITTLE HOGWARTS WIZARD, STEPHEN CARTER. THIS IS NOT A GAME OF QUIDDITCH THOUGH, BUT ONE WHICH MAY WELL BE PLAYED ON A PITCH CALLED FREEVIEW.
THE STAKES ARE VERY SIMPLE. GREG HAS A CHARTER RENEWAL AROUND THE CORNER AND DESPERATELY NEEDS TO SHOW THAT THE DIGITAL BBC IS WORTH ITS LICENCE FEE.
THE MAIN WAY HE CAN ACHIEVE THIS IS THROUGH LAUNCHING HIS RAFT OF DIGITAL CHANNELS, WHICH HE HAS BEEN ALLOWED TO DO SO FREELY.
EVEN WITH THE OVER EXAGGERATED HICCUP OVER BBC 3, THIS COURSE OF ACTION IS NOT JUST LAMENTABLE BUT WILL BE JUDGED WITH HIND-SIGHT TO HAVE BEEN MISGUIDED.
THE 800-POUND BBC GORILLA HAS BEEN GIVEN STEROIDS AND ALLOWED TO REEK HAVOC IN THE BLUE PETER GARDEN OF BROADCASTING.
THIS HAS IMPACTED ALL OTHER MULTI-CHANNEL PROVIDERS AND THE HEART OF U.K. INDEPENDENT PRODUCTION AND SHOULD BE KEPT IN CHECK BEFORE THE BBC REALLY STARTS ABUSING ITS POWER.
WE'VE SEEN EXAMPLES OF THIS IN THE KIDS SPACE, WHERE THE BBC NOW USES ITS IMMENSE MUSCLE OF BEING ABLE TO OFFER ANALOGUE AND DIGITAL PLATFORMS TO PRODUCERS AS A WAY OF EITHER EXCLUDING OR PRICING OUT THE COMMERCIAL COMPETITORS.
PUT IT ANOTHER WAY.
IS IT RIGHT THAT THE BBC CAN TELL A SYNDICATOR OR PRODUCER THAT THE PRICE NOW ALSO INCLUDES THE DIGITAL CHANNELS AND PENALISES SOMEONE FROM SELLING JUST TO THE ANALOGUE TERRESTRIAL.
AND SHOULD THE BBC BE ALLOWED TO BUNDLE THEIR DIGITAL CHANNELS WITH ACQUISITIONS AND COMMISSIONS FOR THEIR ANALOGUE CHANNELS?
NOT ONLY DOES THIS IMPACT MULTICHANNEL OPERATORS AND PRODUCERS BUT ITV, CHANNEL FOUR AND CHANNEL FIVE…THESE GUYS NOT ONLY DON'T HAVE THE FINANCIAL MUSCLE, THEY DON'T HAVE THE BANDWIDTH TO COMPETE ON AN EVEN PLAYING FIELD WITH THE BBC…SO THEY ARE GETTING AND WILL CONTINUE TO GET MARGINALIZED.
THIS IS MOST CRUCIAL FOR ITV, WHO AS A MAINSTREAM BROADCASTER HAS THE MOST TO LOSE.
INDEED, A RECENT ZENITH REPORT SHOWED THAT ITV WASN'T LOSING MANY VIEWERS TO THE ANALOGUE TERRESTRIAL BBC-1, BUT THE PLETHORA OF MULTI-CHANNELS IN DIGITAL. REMEMBER OVER CHRISTMAS THE MULTI-CHANNEL SERVICES OUT PERFORMED ITV IF THAT IS NOT A WAKEUP CALL THEN I'M SLEEPING BEAUTY.
ITV JUST DOESN'T COMMAND ENOUGH SHELF-SPACE, AND DOESN'T HAVE THE SKILL SET TO WORK IN THIS ENVIRONMENT. THE SAME IS TRUE OF CHANNEL FOUR AND CHANNEL FIVE, BUT THEY'RE BOTH REALLY ONLY FIGHTING FOR THE SCRAPS.
THE ONE ORGANISATION THAT HAS THE PHYSICAL, FINANCIAL AND INTELLECTUAL BANDWIDTH TO STAND UP TO THE BBC IS BSKYB.
BUT WHY SHOULD TONY CARE? AS I MENTIONED, THE ISSUE COULD BE FREEVIEW. IF GREG CAN GET FREEVIEW TO WORK AND BECOME WIDELY DISTRIBUTED, THEN HE HAS A BETTER ARGUMENT IN THE CHARTER RENEWAL PROCESS.
IF FREEVIEW WORKS, IT'S FEASIBLE THAT THE U.K. WILL START TO RESEMBLE PRESENT-DAY GERMANY WITH 28-30 WIDELY DISTRIBUTED TERRESTRIAL CHANNELS. THESE CHANNELS COMMAND SERIOUS REVENUE STREAMS AND PROVIDE A WEALTH AND VARIETY OF PROGRAMMING, INCLUDING THINGS LIKE SPORTS RIGHTS.
WHEN YOU HAVE A MARKET DYNAMIC SUCH AS EXISTS IN GERMANY TODAY, THE APPETITE FOR A PAY-TV PLATFORM IS GREATLY DIMINISHED…JUST LOOK AT THE PROBLEMS THAT PREMIERE HAS SUFFERED IN GERMANY.
SO TONY IS LOOKING AT THE POSSIBILITY THAT IF FREEVIEW WORKS THE OFFERING TO THE PUBLIC COULD GREATLY DIMINISH THE APPEAL OF SKY.
THAT'S WHY YOU CURRENTLY HAVE A SITUATION WHERE, THE BBC CHANNELS ASIDE, THE OFFERING IS RELATIVELY WEAK.
SKY BEING THE SMARTEST KID ON THE BLOCK IS ALSO PLAYING BOTH SIDES AND IS PERFECTLY POISED TO DOMINATE COMMERCIAL TV IN THE FUTURE.
THEY'RE IN THE MARKETING ALLIANCE FOR FREEVIEW, THEY HAVE CHANNEL CAPACITY ON FREEVIEW, AND BEST OF ALL, THEY CAN BUY CHANNEL FIVE TO GIVE THEM AN ANALOGUE SHOP WINDOW IF NEEDED.
GIVEN ALL OF THAT, WHO WOULD WANT TO BUY ITV? AND HAVE PITY FOR CHANNEL FOUR WHO CAN'T BE BOUGHT…YET. MY MONEY’S ON CHANNEL FOUR COMING ON THE BLOCK WITHIN THE NEXT FIVE YEARS - IT'S THE ONLY WAY IT CAN SURVIVE AND I'M SURE THE GOVERNMENT WILL ACT ONCE THE ITV ISSUE HAS BEEN PUT TO BED.
SO WHAT FUTURE FOR THE NEW ITV? DESPITE WHAT I'VE SAID, THEY WILL STILL REMAIN A MAJOR FORCE. IN MANY WAYS THEY'RE AKIN TO OUR OWN THREE LETTER COMPANY, AOL.
BOTH HAVE HAD IT GOOD FOR TOO LONG AND NOW FACE REAL COMPETITION AND THE NEED TO REASSESS THEIR BUSINESS MODEL. WE'RE DOING THAT WITH AOL, AND IF ITV IS TO COMPETE, IT TO WILL HAVE TO CHANGE. I THINK IT SHOULD STOP BLEATING AND START BEATING THE BBC.
IT CAN DO THIS BY CONCENTRATING ONCE MORE ON ITS STRONG REGIONAL INFRASTRUCTURE..MATCHED ONLY BY THE BBC. ITV SHOULD FOLLOW THE U.S. NETWORK MODEL OF O'N'O'S AND BUILD STRONG REGIONAL PROGRAMMING UNDERNEATH THE NETWORK BRAND.
CHANNEL FOUR NEEDS TO BE PROTECTED OR PRIVATISED AND ALLOWED TO FLOURISH AS THE THIRD ALTERNATIVE. CHANNEL FIVE WILL BE BOUGHT, IT'S JUST A QUESTION OF TIME AND BY WHOM, WHILST SKY SHOULD BE APPLAUDED.
SKY TOOK THE CHANCES AND BET EVERYTHING ON MAKING A MARKET. IT'S NOT ITS FAULT THAT IT HAS THE BRIGHTEST TALENT RUNNING IT, OR THAT ITS COMPETITORS WERE SO INEPT.
IT'S A GREAT BRITISH TRAIT TO CRY FOUL WHEN SOMEONE MAKES A SUCCES OF SOMETHING. SKY IS THE U.K.'S BEACON OF COMMERCIAL SUCCESS IN THIS WORLD AND SHOULDN'T BE UNDULY PUNISHED FOR THAT SUCCESS AND INNOVATION. I SAY THAT AND I REALLY MEAN IT...AND FOR YOU CYNICS OUT THERE, NO, I'M NOT IN THE MIDDLE OF ANY RENEGOTIATIONS WITH THEM!
ONLY THE BBC SHOULD BE TIGHTLY REGULATED AND MADE TO ACT IN ITS PROPER PUBLIC SERVICE REMIT. IT CANNOT BE ALLOWED TO RUN UNHINGED IN A FUTURE WHERE SO MUCH IS AT STAKE.
SO THERE YOU HAVE IT..AN INSULAR U.K. INDUSTRY DOMINATED BY TWO GIANTS WHO NOT ONLY CONTROL LIFE DOMESTICALLY, BUT TRADITIONALLY HAVE HAD THE VISION AND WHEREWITHAL TO LOOK ABROAD.
THE ONLY WAY OUT FOR THE INDUSTRY IS TO STOP THE NAVEL GAZING, REALISE YOUR POSITION IN THE NEW WORLD ORDER AND HIRE SOME TALENT THAT UNDERSTANDS HOW TO ACHIEVE THAT. NO MORE IN-BREEDING…AND WATCH WHO WINS THE FREEVIEW BATTLE.
MANY THANKS FOR YOUR TIME.
:END///
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