1. C-411036.1 Regional Licensing & Availability Anthony Indaimo – Withers LLP Head of International Commercial Specialises in cross-board corporate and commercial law with an emphasis on technology and media sectors

2. C-411036.1 Regional Licensing & Availability Overview Content & Licensing Regional Content Global Content Content Control Airlines & Passengers

3. C-411036.1 Overview Economy Manufacturers Airlines — Low cost – Jet Blue, Ryanair, Zoom — Business only – EOS, Silverjet, MAXjet — International –Emirates, BA, Qantas — New entrance – AirAsia, Kingfisher

4. C-411036.1 Overview (Cont…) Costs – fuel, Green Tax, etc. “Open Skies” pact Advances in technology Passengers

5. C-411036.1 Content & Licensing Audio/Radio Movies TV Programmes Infomercials Magazine Programmes Destination Films News Sport Games Gaming Broadband Live sports/news

6. C-411036.1 Airline expenditure on IFE to increase: — From US$ 1.86 Billion in 2006 — To US$ 2.44 Billion in 2011* In-flight interconnectivity solutions Good news? Content & Licensing * (Source: IMDC Research )

7. C-411036.1 Content & Licensing Rights owner- widest distribution for greatest value Traditionally rights divided by: — Territory – domestic, regional or international — Language – original or foreign — Existing distribution – free to air, satellite — New technologies – telephony, broadband Exclusive or non-exclusive

8. C-411036.1 Content & Licensing Increase in airlines and technology Better value and exposure for “premium” content Separating rights into packages: –Hand-held devices –In-seat AVOD –Live and Near Live –Advertising –Pay per view –Gaming –Broadband

9. C-411036.1 Low cost domestic US carrier 36 channels DTH Free DIRECTV® Pay TV Fox In-Flight Movies Regional Content

10. C-411036.1 Regional Content Can jetBlue model work outside US? Depends on — Common language — Variety and quality of content — Method of distribution

11. C-411036.1 Regional Content Virgin Blue – Australia — English language — 24 Pay TV Foxtel Channels — Live news/sport China, India and Middle East? Europe?

12. C-411036.1 Global Content Global live TV on board anywhere, at any time Inmarsat satellites means no ocean gaps Global content? –Availability –Language –Rights clearance –Content control –Piracy –Price model

13. C-411036.1 Global Content Vs Regional Content mix – route specific vs general — Regional news for a regional airline? — Passenger mix justifies more global news? Language – local vs different languages — Audio translation? — Multiple language channels?

14. C-411036.1 Taste and decency standard More conservative than TV Ideal genres: comedy/romantic/light adventure Similar standards for advertising Content Control — No airline crash scenes — Sensitive to terrorism — No nudity/sex scenes — Sensitive to violence — No images of other airlines

15. C-411036.1 Content Control Examples of: No images of other airlines – “BA Airbrushes Branson from in-flight Bond Film” Sensitive to terrorism - Virgin cancels “Loose Change” Documentary after complaints

16. C-411036.1 Content Control (Cont…) Film/TV content: — Tape – not time sensitive — Near Live – ability to edit — Live – technical difficulties Advertising content: — Near Live – ability to insert/change — Live – difficulty to insert Some practical issues…

17. C-411036.1 Content Control (Cont…) Liability for Live TV — Disclaimer — Indemnity Branding — “Me too” content — Content brand vs airline brand Can airline customise its IFE brand? Some practical issues…

18. C-411036.1 Airlines & Passengers Captive audience Demographic profiles — Higher for passengers than TV markets — Business, premium and first class Business Model – combination of — Access fees, — Advertising, — Gaming and merchandising

19. C-411036.1 Airlines & Passengers (Cont…) Potential via Live TV? Reality — Viewership assumptions? — Advertising rates? — How is viewership measured? Advertising Revenue…

20. C-411036.1 Airlines & Passengers (Cont…) Potential for services such as access, pay per view and merchandising? Reality — Will passengers spend? — Where is price point? — Useful lessons? Passenger Revenue…

21. C-411036.1 Conclusion Despite advances in technology …. — Know your passengers — Select content accordingly — Be aware of legal pitfalls