Panel on current VoD experiences: Benchmark Business Models, obstacles and opportunities, licenses and windows Estoril 2010

Panel Current VoD Experiences Moderation: Pierre-Alexandre Labelle – Under The Milky Way Context of European VoD: Marijn Duijvestein – KEA European affairs – Technological, social, economic, and political recent developments, – Opportunities for distributors, VoD in the UK: Jonathon Perchal – Artificial Eye – Acquiring VoD rights for UK distribution, – Commercialisation of content in VoD and exploitation windows in the UK, VoD from a Sales Agent point of view: Michael Werner – Non-Stop Sales VoD platform: Efe Cakarel – Mubi.com – Presentation of Mubi.com, – Mubi’s business model, current numbers, and case study, VoD in Spain: Ricardo Torres – Vertice 360 – Acquiring VoD rights for distribution in Spain, – Commercialisation of content in VoD and exploitation windows in Spain, Estoril Panel

Notes and comments by Michael Werner Non-Stop Sales - Sweden Non-Stop Sales is a world sales company representing 25 independent film producers – Part of Millenium Media Group (est.1998) Stockholm. Current experience in VoD is limited for two reasons, – Rights are normally sold as part of all rights sales, – Direct to VoD : The investment is deemed too important versus potential results, Rights must be clearly defined or else they are not part of an agreement, – IFTA helped in clearing the standards (from “Internet rights” to clearly defined VoD rights), As sales agents we are always careful with limiting the license to either: – A language limitation, – IP address (territorial limitation, Main threats to domestic distributors: – Piracy and weak legal frameworks to protect rights-holders, Main opportunities for domestic distributors: – By always keeping your library in good shape, ease the access and delivery processes and you’ll be in a good position to benefit from new opportunities, – Niche marketing and distribution, Estoril Observations

Notes and comments by Michael Werner Non-Stop Sales – Sweden (2) We feel that local distributors are in a better position to manage VoD distribution as opposed to the sales agent (as part of all rights sales), As an all-rights sales company, we normally license VoD rights on an exclusive basis (on new content) to the local distributor. The local distributor normally gives non-exclusive agreements to local platforms. We as sales agent ask for a better reporting from local distributors; however VoD is not the only problem… Estoril Conclusions

VoD in the French Media Chronology The latest version of the Media Chronology was adopted on the 12 th of July 2009 by the following signatories : Cinema organisations (exhibitors, distributors, and producers), Pay-TV and free television channels (France Télévision, Canal +, Arte, M6 and TF1), Video on demand editors (Orange, SFR, VoD union), The objectives of the reform were to: Adapt the rules and regulation to new distribution channels, To maintain healthy and sustainable mechanisms for the financing of Cinema production, Create a favourable context to the emergence of legal VoD offers, Shorten the delay for television exploitation, thus consolidating their essential participation in Film funding. Estoril Legal context

VoD in the French Media Chronology (2) AFM Chronology Delay for a first exploitationDistribution Channel Upon reception of the exploitation Visa Theatrical exploitation 6 months 4 months Video distribution 33 weeks 4 months Video on Demand 9 monthsPay per view 12 months 10 months Pay TV 24 months 22 months Free TV (when acting as co- producer of the film) 36 monthsFree TV

VoD in the French Media Chronology (3) Estoril Chronology