1. Digital Rights Working Group Update NETA Board Planning Conference July 25, 2006

2. I.Times are Changing II.Public Television’s Viewpoint III.Open Questions IV.Key Takeaways V.Next Step: The Feedback Loop Today’s Agenda

3. Why Are Times Changing? Total U.S. Households with Broadband Connections SOURCE: The Home Technology Monitor Home broadband Internet access is growing rapidly.

4. How Are Times Changing? Radio & Television Computer Handheld Mobile Device NEW PLATFORMS Streaming Live Downloaded Interactive NEW INTERACTIONS Therefore, we can more easily interact with new platforms in new ways.

5. How Do These Changes Affect PTV? They allow new players to deliver video & other media to the audience. Download to Own Streaming Podcasts Mobile Media Broadcast

6. I.Times are Changing II.Public Television’s Viewpoint III.Open Questions IV.Key Takeaways V.Next Step: The Feedback Loop Today’s Agenda

7. The Digital Working Group’s Process Digital rights emerged as a critical issue Held Rounds Robins Issues are complex There is urgency to Act PTV should maintain Core Values Developed Initial Perspective Broadly sharing findings from group Soliciting input and dialogue from the system Seeking Greater Input Includes representatives from various affinity groups, PBS and CPB Goal is to provide clarity and recommendation for a digital rights strategy Digital Working Group Formed 12 34

8. How Do We Approach This Topic? How should public television’s core mission translate onto new media platforms? What combination of programs and platforms sustain PTV’s mission over the long term? Answering the strategic question will help us answer the tactical question. STRATEGIC TACTICAL

9. The Strategic Question How should public television’s core mission translate onto new media platforms? Public Service Content Maximum Possible Access Deepen Community Service By offering… in order to… with the… STRATEGIC

10. The Strategic Question: A Fundamental Approach How can we broadly achieve this strategy? Where appropriate, generate revenues. Where sustainable, maintain free access to content. All content free on all possible platforms. or INITIALLY… THEN…

11. The Strategic Question : Example NewsHour NewsHour offers an extensive archive of streaming video clips dating as far back as 1996.

12. The Tactical Question What combination of programs and platforms sustain PTV's mission over the long term? Program Type Platform Type Time Period Revenue Opportunity Common Vocabulary Assess Rights Individually Benefit the Entire System Experiment Ground Rules TACTICAL +

13. The Tactical Question : A Common Vocabulary Program Type Platform Type Time Period Revenue Opportunity Public Affairs  History  Local  Science Download to Own  Streaming  Podcast  VOD One Day  Two Weeks  One Year  Indefinitely Free  Pay Per Use  Member Premium  Sponsorship VARIABLES EXAMPLES What are the four key variables in determining a rights strategy?

14. The Tactical Question : A Common Vocabulary How do these rights combine into a rights strategy? Program Type Platform Type Time Period Revenue Opportunity

15. Ground Rules: Evaluate Rights Individually New platforms complicate rights acquisition and increase costs exponentially. Talent Music Stock Footage Literature Rights Holders X VOD Streaming Download DVD Platforms Broadcast One Week One Year Perpetuity Time Periods X Revenue Model Types of use Terms of Use X

16. Ground Rules: Benefit Our Entire System The public broadcasting system is a complex, interdependent economy. Stations Producers Audience PBS Funders

17. We are decentralized and close to our audience, well suited to experiment. At this early stage, there are too many unknowns to risk large investments. Ground Rules: Experiment The evolving, decentralized nature of new media favors experimentation. Small This space is rapidly evolving, so we must act now to maintain our relevance. Experiments Now

18. I.Times are Changing II.Public Television’s Viewpoint III.Open Questions IV.Key Takeaways V.Next Step: The Feedback Loop Today’s Agenda

19. Question Who is using the content? How the content is being consumed? On what terms is the content being used? What is the business model? Potential Answers  K-12, higher education, distance learning  Viewed, cited, mashed-up  Licensed for school site use, for broadly accessible use, etc.  State funded, school/student subscription Depending on the answers, our rights position might change Education environment provide another layer of complexity to the issue of digital rights Open Questions: Educational Digital Rights How can we develop an educational digital rights strategy?

20. The American people provide substantial funding for public television and should have access and use of public broadcasting’s content There is a need voiced by a growing variety of constituents for a trusted source for media on the emerging platforms Long-term access to content can help advance public broadcasting’s mission How much and what type of content would it contain? How much control over the content would users be given? Who, if anyone, would be an appropriate partner in this enterprise? What rights would be needed and how could we afford to pay for them? What implications would this have for producers and other underlying rights holders? Why a Digital Archive? What Are the Rights Issues? Open Questions: Digital Archive Should we establish a significant public Digital Archive?

21. Are there certain types of properties where we all agree that having the most comprehensive rights package is critical (e.g., primetime national shows, children’s programs, local programs)? For any given deal, how do we balance the needs of the national players with the local stations? How will costs be covered on new platforms? How will revenues be generated and shared? Open Questions: Unresolved issues What are the questions that the system needs to answer to effectively move forward?

22. I.Times are Changing II.Public Television’s Viewpoint III.Open Questions IV.Key Takeaways V.Next Step: The Feedback Loop Today’s Agenda

23. The Four Critical Ideas To advance our mission, we need to offer the broadest free access possible Digital rights must be individually evaluated On balance, new business models must benefit our entire system Successful innovation requires rapid experimentation

24. We Are Flying This Plane at the Same Time We Are Building the Plane Innovation ConsensusAction Talking Success lies in simultaneously moving and interacting in four areas:

25. I.Times are Changing II.Public Television’s Viewpoint III.Open Questions IV.Key Takeaways V.Next Step: The Feedback Loop Today’s Agenda

26. White Paper will provide guidance and recommendations for national and local digital rights strategies Other Feedback Tools White Paper Broader System Input Wikis Web Conferences Feedback from station experimentation AGC will facilitate input from affinity groups Input will provide clarity to issues in the paper that appear unclear Next Steps Where do we go from here?