1. The European way to think the Digital World www.idate.org Always on…at home: who will pay for what? Gilles Fontaine

2. IDATE © 2003 www.idate.org 2 Content  Demand for bandwidth is driving the development of broadband Internet  Brodband Internet consumers massively use peer-to-peer services  Unlike Internet access providers, content industries do not benefit from P2P  Moreover, the off-line bussiness suffers from the competion of P2P  This is not a sustainable situation: the merchandisation of on-line content services is a must  New factors enable the launch of pay content services  Several have launched…for what results ?

3. IDATE © 2003 www.idate.org 3 50 million broadband households in Europe in 2007… Broadband households forecasts Source: IDATE Broadband penetration among consumers has been driven by bandwidth In a first phase, most ISP have downsized their broadband portals/services

4. IDATE © 2003 www.idate.org 4 …benefitting P2P services Source: IDATE Over 150 billion songs downloaded in 2003 3 times more than songs purchased After music, time for video

5. IDATE © 2003 www.idate.org 5 …competing with «traditionnal » content industries (1) Source: IDATE

6. IDATE © 2003 www.idate.org 6 …competing with «traditional » content industries (2) Source: IDATE - Use-It® A 15% TV time decrease among Internet users A 20% TV time decrease among broadband Internet users All TV time taken from general interest channel

7. IDATE © 2003 www.idate.org 7 New factors (1): going beyond the PC Source: IDATE – Use-It® PC prices/difficulty to use remain a barrier for a significant part of consumers Some households will be PC-centric, other mobile/pda centric, other TV-centric Integration of content and services expected for new terminals and likely to be more user-friendly

8. IDATE © 2003 www.idate.org 8 New factors (2): technology and legal  4 Mbps + broadband Internet makes for quality TV programming  Copy protection making (slow) progress  Links between terminals for an easiest usage of content

9. IDATE © 2003 www.idate.org 9 New factors (3): New broadband offers: on PC, on TV, on mobile

10. IDATE © 2003 www.idate.org 10 Always on…who will pay for what ?  Are content services in need or will P2P remain the killer application for broadband Internet ?  Tailoring the content for each terminal: who and how?  Business model: stealing revenues from television ?  Partnerships: distributors wanted ?