1. Dr. Duane Varan - Murdoch University iTV: Changes to Business Stategies and Public Policies Dr. Duane Varan Interactive Television Research Institute

2. Dr. Duane Varan - Murdoch University Historical Overview New Media do not displace old media But they do displace the business models of older media Example: Dramatic shift in the business of newspapers, theatre, radio, cinema and now television.

3. Dr. Duane Varan - Murdoch University Paradigm Shift Changes currently underway represent new paradigm Not everything will change - but much will Have to have courage to embrace the change - seize new windows of opportunity Not just new industries, but the salvation of traditional media enterprises Radical implications for both business and policy

4. Dr. Duane Varan - Murdoch University New Business Strategy

5. Dr. Duane Varan - Murdoch University The Shifting TV Landscape Fragmenting Audience Increasingly becoming ambient medium Increasing viewer control (e.g. VCR zipping at 72% - up from 54% in ‘90) Increasing premium program costs Multiplication of conduits Commoditisation of exposure

6. Dr. Duane Varan - Murdoch University TV’s New Business Needs a new business - digital strong potential But unclear what the new business is Clear potential for iTV - but spotty record Can’t cannibalise existing business 30% of iTV viewers going into interactive services during ad breaks 88% use PVR’s to zap ads

7. Dr. Duane Varan - Murdoch University The New Value Chain New players - each of which think they’ve contributed 90% of the added value New rights - both for new product and for existing product New need for collaboration between players (e.g. backchannel, EPG, PVR, etc.)

8. Dr. Duane Varan - Murdoch University New Content Who will champion and discover the new content? How do we discover what audiences want? How do existing content producers develop the skills and underwrite the new content? What platform do they develop for? Remarkable export opportunities

9. Dr. Duane Varan - Murdoch University The New Viewer No longer the commodity of exchange No longer the silent partner How do we build with the viewer as an active participant in the process R&D process in development critical - but where’s the funding coming from

10. Dr. Duane Varan - Murdoch University Self Regulation/Social Responsibility Privacy ‘Safe’ space Codes of Practise Quality Control

11. Dr. Duane Varan - Murdoch University Public Policy

12. Dr. Duane Varan - Murdoch University Spectrum Management Digital technology offers remarkable spectrum efficiency - compared to remarkable wastage with analog Potential financial returns from sale of spectrum

13. Dr. Duane Varan - Murdoch University Stimulate Industry Light touch Strong national broadcaster British model Australia policy based on protecting vested interests by penalising everyone - it’s what we CAN’T do rather than what we CAN.

14. Dr. Duane Varan - Murdoch University Social Policy Regulation is good - creates iTV’s greatest revenue streams The old rationale’s challenged The old remedies no longer work What is the ‘new’ public interest New issues: privacy, cultural integrity, etc.

15. Dr. Duane Varan - Murdoch University Defining New Media How do we define something we don’t yet know Datacasting worst case scenario Promise vs. performance

16. Dr. Duane Varan - Murdoch University Social Impact No body of research yet Desperate need for research

17. Dr. Duane Varan - Murdoch University Appropriate Regulatory Mechanism Does our division of regulatory mandate still work in a convergent environment? Possibility of creation of ‘super’ agency (e.g. OFCOM)

18. Dr. Duane Varan - Murdoch University d.varan@murdoch.edu.au

19. Dr. Duane Varan - Murdoch University