1. Online streaming, cloud computing and bundling of information and communication services
Task Force on price and volume measures for services 3rd Meeting, Luxembourg 10–11 October 2017 Item 5.3

2. A) Online Streaming
providing content (…constantly receiving the requested data)
most relevant for motion picture, video, television programmes, music, audio content, and software
relevant feature: provider acquires for specific content (information products) the reproduction and distribution rights for this content
the customer acquires the right to use this content in a specific way/for specified time span
Examples: Spotify (audio), Netflix (motion picture/video)

3. Streaming Classification
In NACE Rev.2
class motion pictures, videos and television programmes (Netflix, Amazon Video)
class  Sound recording and music streaming (Spotify, Amazon Music)
group 58.1  Online publishing of text, books, news, pictures, audio books
group 58.2  software (computer games and other software publishing)
class  internet radio
class  internet television channel programmes, video-on-demand channels
the distinction gets more blurred in practice as TV broadcasters offer more and more content for online streaming, while on the other hand companies like Netflix or Amazon started producing their own content and the distinction to video on demand channels is not clear cut

4. Streaming Classification II
In COICOP: Newly foreseen COICOP classes are (still not final, may be subject to changes):
Subscription to audio-visual content, streaming services and rentals of audio-visual content
Rental of game software and subscription to on-line games
Audio-visual media
Books

5. In Business Statistics
It is complex; would be necessary to follow up concrete cases at EU and individual country level (for example Amazon, Amazon music, Amazon video, Netflix, Spotify, Sky, radio broadcasters, TV broadcasters, or aggregators like Zebralution)
seems to be a risk that online streaming activities are still not fully or correctly captured in business statistics (multinationals, international trade in services, resident or non-resident, from inside or outside the EU, breakdown into kind of activity units
In the 2017 OECD questionnaire on digitalisation Canada explained that in some instances there are affiliates of digital platforms located within the country. However, their investigation has shown that the business structure of these enterprises is such that consumers are transacting with the non-resident establishment and the domestic establishment is simply providing advertising/marketing services on behalf of the non-resident parent company

6. Prices
The CPI
included in ECOICOP Television and radio licence fees, subscriptions; not separately identified
it will depend on the countries' individual survey sample plan if and how online streaming services are included in the aggregated index
seems that countries simply price the monthly subscription fee
Chance with updated ECOICOP?

7. Prices II
The SPPI
foreseen to produce SPPIs at two digit levels of NACE Rev.2, but not in a more detailed breakdown

8. In NA and Volume measures
Deflation
A-method: deflate the current price output data at CPA class 4-digit level with suitable SPPIs
good alternative: suitable CPIs, adjusted to basic prices
CPI could also serve as a good proxy for the price development in the B2B relation (to be tested)
currently available ECOICOP is an aggregate of numerous activities; do not exactly match the CPA/NACE classes 58 to 60

9. In NA and Volume measures II
Quality Changes
quality changes constitute a volume effect and should accordingly be taken into account in the price indices used for deflation
Indicators like number of films in a package; content is in most cases dynamic and not static
follow the developments in price statistics, currently desirable PI generally are not available
separate research in concrete cases might be considered in how far the current practice could introduce a bias to the volume measures of GDP growth

10. B) Cloud Computing Users can be private households or corporations
Services: digital storage space, computer processing power or specific software applications
supplier and user of the cloud service can easily be located in different countries

11. In the Classification In NACE Rev.2:
class (Data processing, hosting and related activities)
In the revised COICOP classification (may still be subject to changes):
Internet access provision services and net storage services

12. Prices The CPI: The SPPI:
'Cloud services' are included in ECOICOP
The SPPI:
The SPPI for division 63 Information service activities is available

13. In NA and Volume measures
Difficult to give recommendations for activities which are somewhere included in the aggregates indices (current price values and prices)
More detailed data at individual MS level?

14. C) Bundling of information and communication services
bundles get more and more common in the market
the market is very dynamic and also the bundles on offer change constantly
Bundles could combine different combinations of fixed line telephony, mobile telephony, fixed line internet access, mobile internet access, hardware (routers, mobiles, TV-sets), access to content (film, video, music) ….

15. In the Classification NACE Rev.2 classes:
61.10 Wired telecommunication services (including provision of internet access),
61.20 Wireless telecommunication services (including provision of internet access),
61.30 Satellite telecommunication services (including provision of internet access) and
61.90 Other telecommunication services (including voice over internet protocol provision).
bundles of telecommunication services should be classified in NACE 61.90

16. In the Classification II
ECOICOP classes:
Wired telephone services
Wireless telephone services
Internet access provision services
Bundled telecommunication services

17. Prices The CPI: The SPPI:
CPIs for telecommunication services are available at ECOICOP 5 digit level for most EU countries
recommendation on the treatment of bundling of telecommunication services in the HICP
The SPPI:
SPPIs are available at the level of NACE 61 Telecommunications, but not in a more detailed breakdown for groups or classes
More details as MS level?

18. In NA and Volume measures
Consistent approach to current price data
Deflation with appropriated PI (CPIs or adjusted CPIs)
For quality changes volume estimates have to follow the practice in price statistics (integration of vertical quality changes)
discussion of the two alternatives for volume estimates – deflation vs volume extrapolation