1. REGULATION AND MARKETS IN A CONVERGED WORLD: CONTENT DEVELOPMENT Progress & Freedom Foundation Brussels, 22 February 2007

2. (1) Business Models : Content & Distribution (2) What Role for Content Regulation? (2) What Role for Content Regulation?

3. THE ACCELERATING PACE OF NEW TECHNOLOGIES WAYS TO DISTRIBUTE ELECTRONIC MEDIA CONTENT 1950196019701980199020002010 CINEMA TELEVISION VHS ANALOGUE CABLE ANALOGUE SATELLITE DIGITAL SATELLITE DIGITAL CABLE DVD WEB PODCAST SVOD 3G DVB-H XXIth century XXth century DTT TVoDSL VOD

4.  Underlying question of the “philosophy” of the digital economy : what role of content?  Some media companies facing distribution issues for the first time, just as some telcos are having to think about content for the first time  ‘Content is King’ – so where is the consumer?  USP going forward – original material? BUSINESS MODELS: CONTENT & DISTRIBUTION

5. REGULATION OF CONTENT What public intervention in the content market is appropriate in the digital economy?  For ‘linear’ media - content quotas not questioned/reviewed in Audiovisual Media Services  For non-linear, general recognition that less intrusive regulation is needed  A key issue therefore held over to next revision of the directive:

6. STARTING ASSUMPTIONS The current level of intervention is inappropriate/unnecessary But there will be market failures in the digital world. They will however differ from the (assumed) market failures in the analogue era:  Children´s television  Training  New talent  Regional programming? Is there a will to devise new schemes to meet these market failures?

7. THANK YOU – ANY QUESTIONS?