1
ANNEXE 8
EXPERTS GROUP 2:
DISTRIBUTION, TECHNOLOGY &
AUDIENCES, REPORT & SUMMARY
EBU
David Wood (Chairman), Bram Tullemans (Coordinator)
Member list:
Andrea Fabiano (RAI), Annika Birnstad (NRK), Benoit
Balon Perin (RTBF), Christoffer Godt-Hansen (DR), Daniel
Wilson (BBC), Egon Verharen (NPO), Eric Scherer (FT),
INDEX
A: Summary of distribution and technology trends and
their impact on PSM
B: Dilemmas, challenges, opportunities and strategic
choices
A: SUMMARY OF DISTRIBUTION AND TECHNOLOGY TRENDS
AND THEIR IMPACT ON PSM
What are the trends and directions evident today that moving past 50. Sets will become ever thinner and lighter
public service media providers must be aware of in radio,
television, and new media, to remain relevant to audiences
and important to society in 2020?
One tends to always think of public service as being a
question of video (TV) and audio (radio). This is a mindset
that will no longer be viable in 2020. To be relevant, PSM
has to play a certain role in society by means of electronic
media in a wider sense.
Europe is not homogeneous.1 European nations advance
their media technology at different rates, and use satellite,
terrestrial, and cable television to quite different degrees.
As just one example, 20 years passed between the first
and last European nations transition to digital terrestrial
television.
Sometimes a latecomer can even have an advantage
earlier technologies can be leapfrogged. But in general,
the pattern set by pathfinder nations is eventually taken up
by all. The trends that we identify here are those found in
pathfinder countries, but they will be relevant, in time, for
all EBU Members. Somewhere in the world, the future has
already happened or nearly happened.
Changing viewing experience
In the years between now and 2020, the signs are that
homes will move increasingly towards two kinds of viewing
experiences, whether they use terrestrial, satellite, cable,
or internet. The first will be the large screen display in the
lounge, which becomes ever larger with each purchase,
1 
????
Francis Goffin (RTBF), Franz Manola (ORF), Gunillla Ohls
(YLE), Khalid Hadadi (Channel 4), Kazimir Bacic (HRT),
Klaus Illgner-Fehn (ORF), Lut Vercruysse (VRT), Marc
Savary (SSR), Peter Weber (ZDF), Robert Foster (BBC),
Sven Lescuyer (FT), Sylvie Courbarien Le Galle (FT),
Thomas Saner (SRG), Tomas Lindhe (SVT)
C: Recommendations
D: In depth: Distribution and technology trends and their
impact on PSM
to allow this.
The second is the handheld device we know nowadays as
a tablet or smartphone, which will be used for just about
everything in media and communications. It will act as an
important tool for sharing thoughts on what is seen on TV,
heard on the radio or what is a hit on the internet. It will
be used to find and watch content and even control other
devices. Everyone will have their own personal device that
is optimized for data entry, and it will be their companion
from dawn to dusk. With the establishment of the internet
of things, media products follow even without dedicated
devices. Common items (cup, table, wall, light bulb, etc.)
connected to the internet will be at least used to promote
our media productions if not to show them. TVs with inter-
mediate sizes will disappear.
The selling motivators for purchasing a TV will become
sharp, big, light, cheap and 'connectability'. Picture quality,
screen size, weight, cost and the possibility to connect with
other devices or internet related services will determine
what we buy. Asia is and will in 2020 be the centre of pro-
duction of media devices including televisions dominating
the technical developments in this field.
Mobile devices like tablets and smartphones will evolve too
the images will be higher quality, the devices will be thin-
ner, and they will have ever-increasing processing power
and battery capacity. This will allow ever more sophisticat-
ed apps and video with higher quality to be viewed. It will
increasingly replace the remote control and become the
2
starting point of finding and interacting with content as it is
optimized for data entry in quite new forms.
These two connected things large, high-quality, thin, light
media / TV screens and mobile devices will become the
tools with which public service media providers reach their
television or radio audiences.
For the TV set, broadcasters will have two directions
to exploit. The first is towards better technical quality.
Technology is allowing step increases in image quality. The
greater the technical quality, the more involved the viewer
feels, and the longer he or she will watch the programme.
Better technical quality is a win-win situation for broadcast-
ers, set-makers, and viewers, and is inevitable. But some
aspects of the evolution of image quality (better decoding)
may be more easily done in internet-delivered rather than
in broadcast services.
The second direction is towards adding what the industry
terms features but which are in fact services in an appli-
cation environment. These can be used to augment the
broadcast, or possibly substitute for it. The main features
arise from the technology of hybrid broadcasting con-
necting additional services from the broadcaster via
internet to the television channel. This can be used for
programme guides, auxiliary information about the pro-
gramme, interactive elements like play-along scenarios or
video on demand, including catch-up TV, all controlled by
the content provider.
The TV set becomes a media set and will also have its own
app for controlling what the set does and what it shows.
TV / media sets will include increasing amounts of com-
puter processing power. But equally the processing power
used may be in another home / mobile device or in a set-
top box.
There are a number of different hybrid systems. The Eu-
ropean HbbTV, a hybrid broadcasting system developed
independently of set-makers, could gradually gain ground
over the set-makers own systems, unless they decide to
favour their own platforms in the ongoing struggle to own
the end consumer.
These features can also be provided for mobile devices
such as tablets and smartphones, so the viewing experi-
ence can be the mobile device alone, or a combination of
a TV programme and the mobile device, offering multi-
media and social networking alongside interactivity. The
lounge viewing experience for many people will become
the simultaneous use of the large screen, the lap-mounted
tablet and hand held smartphone. But viewers will also use
mobile devices at any time, and in any room, to watch TV
programmes or other web content in private.
2 
A study by WIK and Aegis predicted that by 2017 80% of all traffic to mobile devices will come over WiFi:
http://ec.europa.eu/digital-agenda/en/news/study-importance-wi-fi-socioeconomic-benefits-using-small-cell-infrastructures
Displays will have high resolution and be flexible. Immersive
sound will be a commodity and loud-speakers will dissolve
into their surroundings (wallpaper, body sound, etc.). This
future will see the rise of context-aware TV. Cloud-based
technologies make it possible to create virtual devices and
services instantly in a given context optimized for personal
use or the demands of a group.
Mobile devices will become as important as television to
access broadcasters' services. There is no question that
mobile devices will become as important for broadcasters'
media experience as televisions. Not only for consuming
audio and video 'anywhere anytime' but also for finding,
viewing, interacting with, or communicating about the
broadcasters' content.
Interactivity and personalization in a multiscreen
connected environment
Connectedness is the facilitator for a multiscreen environ-
ment in which the TV is only one of the many screens being
used at the same time in the living room2 or on the move.
Even radios are connected and have screens. The user can
select content on one device and play it on another or play
along with a quiz on the TV against friends in the room or
on the 'digital couch' using their personal mobile device.
Content providers will provide these functions 'server side'
and have a direct one-on-one relation with the audience. At
the same time set-top boxes and game consoles will try to
become the media hub in the household targeting audienc-
es with attractive content bundles and new functions that
can be used without the need to buy a newer model TV /
media set.
In a connected world consumer behaviour and attention
span can be measured in detail by analysing the generated
traffic. There are no secrets and the audience wants all their
devices to be instantly connected. Users will not be pleased
when content is not available online. Intuitive usability and
ease of use are the first priority of technical advances.
Content authentication and identity will become key.
Communication, sharing of content and personalized rec-
ommendations are basic needs. Protected content can be
shared with new technologies that are not device specific
and act as a sort of interoperable digital rights manage-
ment (DRM). Privacy will have a big role to play in the fu-
ture. PSM should drive technical developments in a socially
responsible way to enable the protection of citizens and
their social privacy.
Personal recommendations will play a central role in future
PSM services. It is easy to imagine the success of a 'digital
butler app for which the end-user logs in and the applica-
tion knows where he is, what he is expected to be doing,
and the context of his environment if he is home relax-
ANNEXE 8
ing, at home, doing other stuff at the same time, on the
move, etc. Taking all this information into consideration,
the app makes recommendations or suggestions on how
he can spend his time. It might suggest, for example, that
he finishes what he started watching yesterday on another
device, because that fills exactly the time available until
his next agenda entry. Such information will also be used
to cache content locally that he is most likely to want to
consume now or later.
The application will become the interface for finding, ac-
cessing, interacting and controlling the viewing experience
for any TV, radio or other content.
Broadcasting is no longer only about audio and video and
only those broadcasters that also become 'data-casters'
will survive. The application context is part of the broad-
cast and refers to the application that contains the interac-
tivity. The application environment is the user interface for
all media and it will regulate all possible media interaction.
Examples of this are HbbTV interfaces, browsable statistics,
public alerts, traffic information.
There will be more third-parties delivering data services,
but only broadcasters know exactly what is going to hap-
pen in a programme and can provide play-along scenarios.
This information is valuable for all second-screen applica-
tions and can be sold as an EPG+ proposition. Data-casting
can generate new revenues. Needless to say, all this content
must also be produced. If Content is King then Metadata is
Queen.
The immersive media experience will not be limited by cre-
ating higher quality of sound and vision on bigger screens
but will be holistic and virtual. High-performance cloud-
based computing will enable realistic virtual programmes,
artificial content, visuals that will be directly projected
onto the viewers retinas, augmented reality, holistic media
and other tacit forms that stimulate different senses of
the audience. In future social media will also become more
immersive, using tools such as telepresence.
Distribution in a connected hybrid world
In the United States, the hybrid broadcasting battle is being
played out with over-the-top services. These are internet
VoD services delivered to the TV screen. They offer a huge
range of content at a low cost to the viewer, and some-
times specially created programming. It becomes worth-
while paying for OTT services when the subscription and
advertisements are more viable models than pay-per-view.
US OTT companies will gradually try to conquer European
markets too, as they already have in northern Europe.
But services that rely on internet delivery are subject to
constraints. It is not possible to consistently provide high
definition or ultra-high definition to everyone at the same
time. In smaller densely populated areas the public service
goal of 95% broadband internet coverage will be reached
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within the next few decades but it is unlikely that this will
be the case for the whole of Europe. Internet services will
be convenient and available in urban areas, but there will
be wide variation in what broadband internet access actu-
ally means in practice. Internet might just become a substi-
tute for broadcasting for a proportion of the population.
In a world with many alternative ways to access a pro-
gramme, a new word programme findability will be
critically important in many boardrooms. What happens on
opening screens, in programme guides, in recommenda-
tions, and in search engines will preoccupy us more and
more, as they often do not reflect the PSM remit to provide
citizens with a plurality of media content as a cohesive
factor in a (national) society.
The battle with governments to stop the haemorrhaging of
broadcast spectrum to mobile broadband internet will con-
tinue, and this may not be a winnable fight. Selling spec-
trum provides the government with a source of income,
and national and European decision-makers see broadband
as a requirement for economic growth.
Broadcasting will, for many years to come, be the most
cost-efficient and effective way to deliver high-quality
video to large numbers of viewers at the same time. DTT
is the only platform with a universal reach that enables
free-to-air reception and this is difficult to replicate on
other platforms. Internet, on the other hand, will always be
attractive to those who can get it and afford it, because of
its larger choice of content, its flexibility, its interactivity,
and its convenience.
Will wireless broadband internet be a substitute for broad-
casting in 2020? In terms of providing universal coverage
that is available free to all at the point of reception, the
answer is 'yes' in densely populated areas but is probably
still 'no' for Europe as a whole. It will be attractive to many
users, and for some the answer will be yes. From a cost
perspective for both audience and broadcaster it is a most
probable 'no'. Public service media providers will provide
both broadcasting (using whatever broadcast spectrum is
left nationally) and broadband services.
There are also other trends to consider that could influence
the viability of using internet for delivering TV content. In
some countries internet service providers are introducing
data caps to their internet access offerings. ISPs are also
developing a two-sided market strategy in which they try
to charge content providers for the amount of traffic they
generate in their network. This unicast payment model
conflicts with PSM funding, which does not increase when
programmes are more popular.
The major TV service in 2020 will still be linear broadcasts
as the audience likes to sit back and relax without being
prompted to take action. Furthermore, they like to be part
of something bigger than themselves and therefore tune in
4
to live events and talk about what is being or has just been
broadcast. The meeting place for these conversations is
moving from the water-cooler to social media. The growing
requirement for on-demand viewing adds to the popularity
of the available content and therefore indirectly also pro-
motes live broadcasts.
And if the scenario becomes reality that all content is
delivered on-demand a broadcaster can only reach mass
audiences by group-casting content for population inter-
est groups by delivering more customized services and
dynamic storytelling. Addressing group social behaviour is
in this scenario the big challenge. Social media will grow
in importance for broadcasters. And not only in relation
to findability or the water-cooler effect, as it will also have
implications for the production workflow.
Over the coming years we will see more governmental
pressure to provide additional services to help those with
impaired sight or hearing to gain more from radio and tele-
vision and services delivered over the internet.
At industry level, the forces of the open market economy
may lead to greater international concentration, also of net-
work operators.
Trends in radio
What the years ahead will bring for radio is more difficult
to predict. It is 25 years since digital radio was first demon-
strated; yet its use is by no means universal. FM remains
the most used delivery channel in Europe and, unless there
are national policies to switch it off, FM it may remain so.
It may be that digital broadcast radio capability will be in-
cluded in some tablets and smartphones, and we may thus
gradually see greater use of digital broadcast radio. The
inclusion of FM radio in mobile phones in India created an
explosion of radio broadcasting there.
Radio as a media form will always have a special role to
play, whether it is analogue or digital. Along with live TV, it
sets the tempo of peoples lives. It can be the main outlet
for recorded music and has the lowest cost for maker and
user. It is local and has many other strengths. However, web
services are increasingly also a way of getting to know new
music.
Digital radios may have small screens that allow radio
programmes to be illustrated by multimedia. This could be
delivered in the radio channel itself, or via an internet link.
If screens with higher capability, such as those on tablets,
display the content, the experience can be even better. It
remains to be seen how this potential will be exploited.
The lack of national radio policies in many countries, and
the slow penetration of digital radio, makes it difficult to
predict.
'Visual radio' is a trend in which automated registration
systems record the person talking into the microphone
while adding related visuals. These streams can be used
besides the radio feeds on connected TVs or be published
via HbbTV interfaces.
Impact on the production domain
When making programmes for radio, TV and on line,
increasing use will be made of computer systems (IT) and
off-the-shelf equipment, rather than tailor-made equip-
ment. Work flows (the stages of programme-making) will
be arranged to allow for the use of the same content on
different platforms, but formatted in a number of ways to
suit the user-patterns of the specific device, site or service.
The multiscreen and interactive trends will reflect in more
ways on production. Its possible to imagine services with
which the audience can choose alternative camera angles.
But the camera operator, editor, director and producer will
also be using mobile devices for real time playout during
the production. The ubiquitous computing power and pro-
fessionalizing of cloud services will foster the trend towards
decentralizing production facilities.
Content recommendations
Public service media are traditionally funded by a licence
fee or a government grant or advertising income or a com-
bination of these. They are given privileged access to radio
spectrum. They must, in return, meet certain requirements
when it comes to content. They are required to transmit
TV and radio directly to the end-users without charge.
Public service media convert these privileges to a number
of channel and programme brands. They have the ability
through their channels to, in a sense, recommend content
to their audience.
PSM providers will also offer their content on demand
as many already do. The speed and availability of this
transition will depend on national circumstances, and on
the penetration of high-quality broadband to support the
services chosen. The question is what 'recommendation'
role PSM can play in this fragmented world were files are
played out by platforms using proprietary recommendation
algorithms that often conflict with the PSM merit.
Linear channels will still be relevant for many years to
come. As recommendation engines they have their strong
merits. They are, however, to an increasing degree, being
complemented by online services, where recommenda-
tions can be made by either complex algorithms, or by the
choices of friends or other trusted persons.
Conclusion
In general, technology will move to the background as
an invisible facilitator. Broadcasting will disappear as
mere transmission and this distribution technique will no
longer be the sole identifier of their services. The user will
not have to be aware of how to connect to media feeds.
Technology will become transparent and all media will be
connected instantly via the internet of things. Ubiquitous
ANNEXE 8
computing will dominate all media experiences. Broadcast-
ers have to re-invent their branding strategy among other
things and eventually reinvent their entire business model.
Broadcasting is dead, long live broadcasters. Recommen-
dation is the trade of those content providers and distribu-
tors who are successful.
EBU Members may come to realize that they need to do
more technology innovation and standardization, and work
collectively, if they are to control their own destiny. If we
are to stay competitive we will need (as they say in Swit-
zerland) to get up an hour before anyone else.
In summary, the underlying trend for public service media
between now and 2020 will be the increasing use of
B: CHALLENGES AND STRATEGIC QUESTIONS
The most important strategic choices to be made include:
Organizational structure: How does the multi-network
environment call for new organizational structures and
workflows for public service media providers (PSMPs)?
Timing: When is the right time to move into new areas such
as on-demand or higher quality, taking into account tech-
nology, market, and changes in usage patterns?
Multi-screen: When and how will PSMPs accommodate and
create possibilities for programming on phones and tablets,
including by using social media, or their own or third party
applications?
Audience involvement: How can PSMPs use online media
platforms and services to offer new value to audiences and
maintain direct contact with them?
Content recommendation: How should PSMs react to new
forms of content recommendations, and what should be
their place in the media space?
Metadata: How can public service media providers make
content findable and shareable by choosing and applying
the right metadata?
Use of external distribution tools: To what degree should
public service media providers use third party platforms to
carry their content? This may dilute their own brands and
their mission in the public eye, yet may be the only way to
reach some segments of the public and offer features to
everyone.
Distribution platforms: On which networks, platforms, or
services should public service media content be available?
How should new services relate to services on existing
5
internet as one of the tools we use to reach our audience;
and, at the same time, higher image-quality options will
become available to increase emotional involvement and
do justice to larger TV / media sets. This will be accompa-
nied by necessary changes to programme production. Ra-
dio will continue as a staple of the public, but the speed
of the transition to digital radio, and its potential partner
Internet radio, is difficult to predict.
PSM have to have a central role in this change to ensure
that we are in the hearts and minds of our audiences.
Keep in mind that the best way to predict the future is
to make it yourself. With bold and adventurous ideas
between now and 2020, we can do so.
distribution platforms? What user data is available on the
platform and if it is an on-demand platform can recommen-
dations be pushed?
Cooperation: What are the areas where EBU Members can
best cooperate?
Standards: What standards should be applied, and what
are the implications of choosing proprietary or open stand-
ards?
Lobbying: In what areas do PSMPs need to work with
decision-makers, and sometimes competitors, in order to
facilitate the above points?
Financing: How are technology, streaming costs, and rights
to be funded? Is there room for additional 're-transmission'
or subscription revenues?
The view from 10,000 metres
These strategic choices have no single answer and are a
balancing act between:
An old reality and a new world. Finding the right middle
ground between following and leading your audience, or
between serving old customers and serving specific first
mover groups.
Being a production house or also a content distributor.
To be relevant in 2020, PSMPs should produce content,
but also be a commissioner by controlling delivery of
content.
Q uality and quantity of output. Production workflows
are changing in a networked world. Different categories
of content demand different technical requirements from
production to distribution. For news we need to deliver
fast and on a restricted budget while keeping the (jour-
nalistic) standards high. For television in general we need
6
to restrict budgets, while keeping technical standards
high to increase viewer involvement.
'Old-school' content production and new demands like
having a continuous social media presence by giving
regular Facebook updates, which calls for an entirely
different view on traditional categories such as speed,
quality and content.
C: RECOMMENDATIONS
The underlying theme of the recommendations by the EGII
group are strategies for coping with and taking advantage
of the increasing demand for broadband internet-de-
livered services. At the same time the recommendations
cover future evolution of broadcast services including
the need for increased production efficiency and high-
er audiovisual quality. Both will be needed in 2020 and
beyond.
Organizational structure and timing
Develop an agile company-wide strategy (road map) that
encompasses both programme-making and delivery for all
platforms, recognizing trends. This will ensure that your or-
ganization knows when the right timing for change is there
and also has the capability to act.
1. Invest in understanding your audience and focus on
how the (young) audience is using media, distribution,
and screens / devices with a focus on new media. For
example gather user data with relation to attention
span, content choice, and consumption patterns during
the day, from different online platforms including
external sources, such as social media.
2. Recognize that technology is a key, critical, enabler
of strategy. Embed technological innovation, with a
solid budget based on flexible workplans, encourage
initiatives and involve outside creativity / communities.
3. Aim for flexibility of networked infrastructures. It will
improve your 'time to market', adaptation to changes
and potential to take initiative.
4. Stay independent with regard to delivery as in the long
run it will optimize your chances to reach and interact
with the audience on your terms in the most cost-
effective manner.
5. Optimize your recommendation abilities in a
networked environment to be able to offer value to
both individuals and society. In addition, prepare to be,
for example, an independent media guide for users.
6. Be innovative in content and services. Think outside the
box. Recognize that even with just todays technology,
there are many new services waiting to be discovered.
7. Recognize that partnerships with other national/local
media organizations can ensure a level playing field in
an environment of international media services.
8. Build up a highly flexible production infrastructure
with integrated workflows that is essentially agnostic
R
 each (in the sense of reaching everybody and the ability
for everybody to reach you) and Quality (as in both pic-
ture quality and network performance) on the one hand
and transparent, justified, proportional costs on the other.
with regard to content types and can be extended.
9. Improve efficiency and operational excellence
continuously, realizing that this is one of the main
drivers for trust. Plan internal cooperation to support
convergence.
10. Hire highly qualified staff from engineering to
programming who can operate in a cross-media
environment, overlooking the limits of time and space
of linear broadcasts, and understand how these
different platforms/networks/service relate to each
other for producing and distributing content.
Multiscreen, participation and metadata
Follow your audience, let them decide when they watch
what and on which device, embrace the participatory
culture and use social media or other communication plat-
forms to have a two-way conversation with your audience
in all your activities.
1. See content and services as your objective, rather
than simply delivery channels.
2. Recognize that the core of all activities is good
descriptive data about the programme. Metadata
makes content valuable in that it can be used by
service providers and the user to find and store content.
Invest well in generating and using metadata and
define a metadata workflow starting in the production
sector and then using them in services.
3. Understand the use and usage potential of various
different platforms and services, and apply that to
matching the services you provide. Collect usage data
from your broadband services and use feedback from
social media to monitor and to shape your services.
4. Focus on stories linked by a common brand on various
platforms.
5. Embrace the multitasking audience and invite
your audience to participate in the production of
programmes, use their tags and descriptive data,
embrace user-generated content, provide play-along
and voting, and update your multiscreen environment
with additional information during and after the
broadcast/publication of a programme.
6. Develop applications with which the audience can
access all your services and combine linear and non-
linear content in a single branding strategy. The user
experience should be seen as an integral whole with the
ANNEXE 8
broadcasters branding.
7. Aim to offer users opportunities for personalization.
Reach masses by being personal, 'from mass media to
precision media'.
8. Access to (open) data from audiences that are reached
by third party closed platforms.
9. Test, experiment and learn.
Distribution platforms and use of external
distribution tools
Extend your presence to third-party content platforms, but
do not rely on them. Provide content on your own terms
but keep a direct relationship with your audience. It is a
combination of adopting an open attitude towards part-
nerships, to go where your audience lives while remaining
independent of any intermediary.
1. Maintain universal coverage, meaning that your main
linear channels are available for everyone, free at the
point of reception, and follow your audience and be
available on all new platforms. Recognize that, for some
kinds of content, including sport and news and live
events, linear delivery is essential and most effective.
2. Explore opportunities to negotiate income
from redistribution of all content in addition to
retransmission rights. Balance between short-term
profit and long-term effects on findability, prominence
and recognizability of your brand.
3. When starting new partnerships use your independence
and strong brand to negotiate the best prominence
of your content/services. Balance between what is
available on different (third-party) platforms. For
example, only drama series on NetFlix and promos on
YouTube.
4. Converge your direct offerings as much as possible with
those delivered via third parties by creating cross-links
or hybrid applications using both managed and 'best-
effort' delivery.
5. Keep your own peering relations on the internet and
use multiple content distribution networks at the same
time to balance your online delivery, avoid dependence
and improve reachability by the audience.
6. Together with all other broadcasters in a country (or
Europe), investigate the possibility to start a national
OTT service on which the audience can find all local
content.
7. Have an open attitude towards new platforms and try
to influence their proposition, for example in designing
recommendations in third-party services to comply with
PSM guidance values, or the availability of user data.
8. Decide on a distribution policy for broadcast radio. A
successful migration to DAB+ covers these factors:
a. Persuade the national authorities that a national
governmental plan is needed. Digital radio
broadcasting will only be successful if there is a
national mandatory plan for analogue switchover (as
exists for TV). If there is no plan, and no transition
timetable, digital radio broadcasting over the air
will languish in partial use, eating up public funds in
7
simulcasting costs.
b. Persuade car manufacturers that supply your
country to include DAB+ radios/retrofits in new cars.
c. Provide equivalent coverage on DAB+ as is provided
on FM.
d. Undertake an extensive awareness campaign among
the public.
e. Create new content for digital radio that has a wow
factor.
f. Make sure the public has access to digital radios that
work.
Cooperation and innovation
Foster collaboration between activities of various EBU
Members with the goal of increasing technology sharing
and cooperative development of innovative technological
solutions for the new network-based digital era.
1. Allocate resources to shape, and contribute strongly
to, the activities of the EBU Technical Committee.
Recognize that the allocation of one engineer to an
EBU project group can be as effective as having 10 local
engineers working on the project.
2. Recognize that what may be innovation for one
Member may be simply using technologies that already
exist or are in use by others. Learning from, and sharing
with, other EBU Members will be very valuable.
3. Consider whether your own, or collective, activities
in research and development and innovation should
be increased and, if so, whether there should be an
increase in EBU resources to complement R&D and
innovation activities by members.
4. Find cooperation between EBU Members with regard
to distribution techniques / solutions that enable EBU
Members to sustain an independent delivery network.
One example could be to investigate whether EBU
Members can cooperate to create an European PSM
OTT platform with their content.
Standards
Understand that interoperability between systems in the
digital workflow is a key business factor and avoid vendor
lock-ins. Proactively force the developments of standards:
1. Use only internationally agreed open technical
standards, whenever possible, and require them in calls
for tender.
2. Ensure that the EBU speaks with one voice in contacts
with manufacturers and influences them with a strong
customer voice.
3. Aim to compete in terms of content and services, but
not technology.
4. Agree common standard platforms.
5. Use generic IT systems wherever you can for
production and distribution.
Lobbying and finance
Lobby for your endeavours at European and national level.
PSM should be supported by policy and regulation in their
efforts to be a cohesive factor in (a networked) society
8
with the right resources.
1. Maintain spectrum for free-to-air efficient distribution.
Ensure that any changes to the use of broadcasting
UHF spectrum do not create any disadvantages for
audiences or any additional costs for broadcasters.
2. Ensure universal and easy access across platforms to
a plurality of information sources and diverse content.
PSM need to retain editorial responsibility over their
content, and this editorial responsibility should not be
transferred to, or shared with, digital intermediaries.
This particularly requires action in the following fields:
a. Strengthening net neutrality principles regarding the
open internet through regulatory safeguards, both at
EU and national level and ensuring they are actually
implemented.
b. Providing safeguards for access to content
platforms and gateways, in the interest of media
freedom and pluralism, in addition to rules on access
to technical facilities.
c. Legal support for efforts to ensure the findability of
programmes and services that are of particular value
for society.
SECTION D
IN DEPTH: DISTRIBUTION AND TECHNOLOGY TRENDS AND
THEIR IMPACT ON PSM
Television broadcasting
European countries have their own history of regulat-
ing distribution ecosystems for PSM. Besides legal ar-
rangements, PSBs in some countries own their terrestrial
broadcast facilities while others only rent capacity from
third-party suppliers. But demographic factors also play
a role. Cable penetration for example is much higher in
densely populated areas while satellite reception is more
popular in rural regions. These national variations in media
distribution ecosystems are therefore open to different
types and speeds of change. Online catch-up services
are not accessible to large audiences in countries where
d. Protect signal and content integrity against
commercial overlays and other parasitic business
models across platforms to protect the European
audiovisual production value chain.
e. With regard to connected TV, it is also
important that must-carry obligations cover, as
a complementary service, the hybrid TV signal
that is part of the broadcasting signal and allows
viewers to interact with the programme and access
complementary on-demand content.
f. Access to data from audiences that are reached by
third-party closed platforms.
3. Persuade manufacturers and network operators to
include the capability to receive broadcast signals
in their equipment (Following the launch of the EBU
EuroChip initiative in order to promote the integration
of a cost-effective, interoperable and future-proof radio
reception chip that can be easily installed in mobile
devices and cars.).
broadband is not commonly available in the home. Wherev-
er cable is more popular, terrestrial broadcasts will be used
less. In these countries, governments tend to have a more
positive stance towards selling spectrum licences used
for PSM to telecom providers for rolling out mobile data
services. In that mindset, spectrum is seen as a money-cre-
ating mechanism, whether for sales revenue or presumed
economic growth in Europe, that outweighs its importance
in society as a carrier of public service content. When there
is no universal coverage and some regions or groups of
citizens are excluded from free access to public service
content, this will have a great impact on PSM.
ANNEXE 8 9

The diverse European landscape with respect to the television access services used by the audience. Source: European Commission, Special Barometer 396,
E-communications Household Survey, March 2013.

Terrestrial broadcast is by far the most widespread distri-
bution platform in Europe as almost half of the audience
uses it to watch television. The digital switchover to digital
terrestrial broadcast (DTT) is almost complete in western
Europe. Use of cable and satellite have been relatively
constant over the past few years, and are used respective-
ly by almost one-third and one-fifth of the total television
viewing audience. 97% of European citizens have access to
television, while 61% also rent a broadband internet con-
nection. Internet access is growing quickly (35% increase
between December 2011 and March 2013). As many as 4%
already use this distribution channel to watch television
10

programming. These figures are the outcome of an annual shows that these figures vary tremendously from country
survey by the European Commission, and the report also to country.

Source: European Commission, Special Barometer 396, E-communications Household Survey, March 2013.

The TV industrys revenue mix should remain stable global-

ly over the next few years, at around 48% for subscription
revenue, 42% for revenue generated from advertising, and
a little less than 10% for public funding. It is also important
to note how the European TV market is broken down in the
illustration below.
ANNEXE 8
Consumer pay-TV spends in Europe 19972017; M. Source: EBU based on IHS Screen Digest data
Radio broadcasting
In the radio sector analogue FM broadcast is by far the
dominant distribution medium. While in the television
sector national governmental programmes regulate the
switchover from analogue terrestrial broadcasts to digital,
this did not happen with radio. Only some countries have
digital radio via DAB as well as the existing FM channels,
while almost all countries have fully switched over to
digital terrestrial broadcasting (DTT). DAB is less expen-
sive in transmission costs for the broadcaster, could offer
higher-quality audio, a greater number of channels, and
potentially make it easier for the user to find stations. FM
sets have a vast existing base of receivers, with little dif-
ference in audio quality. But in the long term, all media will
be digital and sooner or later radio over the air will need to
transition to digital. We can expect that analogue television
broadcasting will be history by 2020 while it remains to be
seen whether radio broadcasting over the air will have a full
digital footprint.
3 
EBU, Media Intelligence Service (MIS) based on data from Eurodata TV Worldwide.
4 
EBU, Media Intelligence Service (MIS) based on data from 18 Members.
11
In an era of convergence and multi-platform distribution,
PSM services continue to be trusted and popular among a
large proportion of European audiences. In the EU in 2012,
TV channels broadcast by PSM gathered an average 27.8% 3
viewing share. In general, radio also remains very popular.
In 2012, it reached 80% of the population in an average
week in many European countries and people spent more
than three hours listening to radio every day (192 minutes).
On average, more than 4 out of 10 radio listeners listened
to PSM radio in these countries.4
Patterns of use
Looking ahead to the year 2020 it can be expected that
the popularity of the above-mentioned distribution plat-
forms will stay more or less the same at European level
with the exception of fast growing use of the internet.
Traditional broadcast techniques deliver linear program-
ming most efficiently to a large audience. This is not only
due to the technical optimization of one-to-many delivery
12
of high-quality media but also from a cost perspective
as broadcast delivery fees stay constant even if millions
are watching. Internet opens a two-way channel between
all users and this allows new interactive services such as
on-demand available media, user-to-user communication
(social media), user-generated content or play-along sce-
narios. It is not, however, the ideal distribution medium for
linear programmed content being watched by many people
at once. Capacity-wise it is still not possible to deliver all
PSM media with the same quality over the internet to the
same amount of people that receive it nowadays via DTT.
This can only change when all citizens have access to in-
ternet via good fibre, fast cable or very high-speed mobile
data connections, and the overall data throughput via
the major internet exchange points into local networks to
the connected play-out devices is upgraded to meet that
demand. Multicasting is an example of an already 27-year-
old technique that, if implemented throughout the internet
chain, would improve the capacity of this IP network to de-
liver linear broadcast. Perhaps internet capacity will meet
the high demands of audiovisual distribution in city regions
but it is extremely doubtful whether the roll-out of these
expensive access services will reach rural areas.
EU viewers spent an average of 3:38 hours per day
watching TV in 2012, which represents an increase of 7
minutes compared to 2011. Even if viewing time is lower
among youth (2:13 hours in 2012), it also increased in 2012
compared with the previous year (+ 7 minutes).5 Linear
TV continues to represent the vast majority of total TV
consumption in the EU. It is expected to account for 91.4%
of total TV consumption in 2013 in the "big 5 markets" 6
and is forecast to retain 82% of TV viewing in 2020. The
recent growth of non-linear consumption7 does not have
a very strong eroding effect on linear TV viewing. This is
due to the fact that the total time invested in TV viewing
continues to grow. For radio, linear consumption remains
predominant while in parallel non-linear consumption has
increased over the past few years.8
Providing internet capacity
Related to capacity issues is the delivery cost aspect, which
does not favour the internet for the large-scale distribution
of high-quality linear programming. Most broadcasters that
operate online use content distribution networks (CDNs)
that have capacity arrangements with internet service
providers (ISPs). The broadcaster pays for the amount of
media that is consumed by users. The cost can be lower
than the fixed costs of traditional broadcasting when a few
5 
Eurodata TV Worldwide and relevant partners.
6 
IHS Screen Digest.
7 
In France, total non-linear consumption of TV programmes doubled for the whole TV market and tripled for France Tlvisions programmes
(between January 2011 and December 2012) (source: Online TV Barometer (GfK/NPA).
8 
EBU, Media Intelligence Service (MIS).
9 
IHS 2013_01 Scaling OTT
10 
MIS Vision2020 annexe on distribution trends
thousand people watch a channel, but will be more expen-
sive when ten of thousands 'tune in', let alone if one needs
to serve the millions that tune in every evening.
Prices of CDNs have dropped over the years but it is ex-
pected that this effect will level out.9 This 'unicast' business
model creates a budgetary problem, as PSBs have a fixed
budget and do not earn extra profits when more people are
watching. This puts a strain on the online distribution mod-
el for broadcasters as the success of one channel, or on-de-
mand programme for that matter, can drain the budget.
Furthermore, online delivery is a 'new' expenditure in the
distribution budget, while this extra effort is not reflected
in a rise of overall budget for PSBs. This is less of a problem
for radio due to the smaller data footprint.
Hybrid broadband broadcast
All modern televisions are internet connected; most of
them becoming a hybrid broadband broadcast (HBB)
enabled set. HBB techniques allow PSM to enhance the
broadcast signal with interactive services that can be
activated by the audience using their remote control. The
broadcast signal 'tells' the television from what server it
needs to collect an HTML overlay. Most popular are the
enhanced electronic programme guides that integrate with
the live broadcast and the on-demand catch-up service
or local recording functions. The combination of tradi-
tional broadcast techniques and the return-channel of the
internet provides the best of both worlds. The popularity
of these services will grow tremendously over the next few
years as proved by the uptake of HbbTV10 and YouView in
recent years . Nowadays application signalling is part of
the broadcast, setting new requirements for signal integri-
ty, or more specific the integrity of signalled service. HBB
services will grow in importance for PSM in coming years as
they offer the opportunity to enable ones own interactive
services, have a direct two-way relation with the audience
and "own the eyeballs".
The use of second screens
Televisions and radios are media devices that are watched
and listened to by all people in a room, filling a physical
location and creating a common experience. Conversely,
mobile devices such as laptops, tablets and smartphones
are personal, optimized for data entry and connected to
the internet. This class of device can enable a synchronized
media experience in many different ways. To name just a
few of them, one can use them to find additional informa-
tion or extend the broadcast on a smaller scale as the show
ANNEXE 8
is finished, or use them to communicate about a broad-
cast via social media or online forums. They are also used
to get input from the audience, for example play-along
scenarios or user-generated content, that can in turn be
used to produce programmes broadcast live or aired at a
later timeslot. These functions are often integrated into an
EPG in one second-screen application, either managed by
the broadcaster for its own channels or by third parties as
an umbrella application covering all channels available in a
certain region. Some consider second-screen applications
to be the future version of broadcast websites as during
the show the available content and interaction models are
updated.
The audience use the mobile devices to multitask, while
watching or listening to the shows being aired, or access
what is available on demand later on. With mirroring by the
use of, for instance, Apples AirPlay or Googles Chrome-
Cast, it is also possible to send the signal over Wi-Fi from
the smartphone or tablet to the TV / media screen.
To accommodate these new media uses broadcasters
need to align content streams and this places demands on
production and distribution. If done well this is an immense
task that requires creative and specialized cross-media
professionals. For every television or radio format the
cross-platform production team will have to decide how
the experience can be optimized for the different screen
sizes, what the second-screen interaction should be, what
extra must be produced and when it should become avail-
able. Metadata feeds need to encompass what happens at
a certain time-code in a programme during a broadcast.
Second-screen interaction requires a tremendous scalable
(cloud) infrastructure to serve the data to a mass audience
in just a few seconds after the audience is notified of the
broadcast. All this makes a website or application more
complex. It is no longer a simple text page with some
on-demand media files, but a publication environment that
performs various functions. There are different upcoming
broadcast-driven standardization initiatives at hand that
help to align broadcast signals with second screens.
Second-screen functionality is a fast emerging service but
is not yet as popular as multiscreen live and on-demand
services that can be accessed from a much wider range. In
the radio sector the live feeds are much more popular than
the on-demand recordings of the programme. In television
there are many more on-demand catch-up services availa-
ble than 'live' feeds.
Knowing your audience
Looking at the statistics of audiences viewing on-demand
catch-up services of PSBs it is clear that all the devic-
es are used differently in terms of programmes that are
11 
For more detailed reading: Page 14 of EBU Tech-i number 13, https://tech.ebu.ch/docs/tech-i/ebu_tech-i_013.pdf
12 
Source: IHS ScreenDigest: Cross-platform Television Viewing Time FY 2012. It indicates % of daily viewing per person (average in EU big 5)
13
chosen, the time of the day that the content is viewed and
the actual average viewing time, or attention span, of the
audience using the specific screens related to the demo-
graphic origin of the viewers. Stimulating discussion about
important issues is an important virtue of PSM, and a great
tool to forge this is the embedded function that enables
users us to easily post the programmes to other sites such
as forums or social networks. From the streaming statistics
it is clear that this creates more traffic during the day when
people tend to discuss what happens in their country or
community.11 Just as the water cooler effect (people talking
at work about what happened on television the day before)
is used to describe the important binding factor of linear
broadcast, this effect is comparable to what happens via
embedding on-demand content online.
The 'social media buzz' is another element that can be
measured to improve our understanding of audience
behaviour. The appearance of programme titles and the
'mood of the message' can be indexed to measure how
much discussion is generated. The amount of interaction
per item can be related to the actual 'clicks' generated by
the audience.
As applications are becoming the main interface for media
consumption, all activities can be monitored. However, the
application cannot report how many people are actually
watching or listening. If there are login details it is clear
who is using the service. For this reason asset-based
measurements using, for example, a watch distributed in a
representative panel that records detectable programme
identifiers in the audio spectrum will be needed to create a
full picture.
The audience measurement sector is developing fast and
this is not a full list of solutions but only scratches the sur-
face. The big difference in comparing the TV world with the
networked environment is that in the latter all data needs
to be available in real time as it is used directly in appli-
cations. PSM will have to rely more on 'big data' systems.
Again it is very important for audience information to be
available from distributors and third parties.
As different media devices are used during the day and
audiences consume more content than ever, with a real
multiscreen proposition PSM can extend the total viewing
time of their content. On-demand use does not cannibalize
the viewing figures of linear broadcasts but creates extra
viewing time. The viewing rates of linear broadcasts remain
relatively constant throughout Europe both for radio and
television. The overall on-demand market is growing rapidly
and PSM is in a good position to take advantage of that.
While linear TV viewing remains the predominant way of
consuming high-quality content12 (93%), non-linear services
are expected to grow further (5% is personal video record-
14

er and 2% is online13). This growth potential can be maxi-
mized by delivering more on-demand functionalities in the
multiscreen proposition.
Authentication, personalization and other
possibilities of internet
Authenticating users over various devices is an important
function as it opens up opportunities to deliver more
personalized recommendations but also the choice
to watch content selected on a mobile device on
larger screen, such as a connected television. A basic
personalized service helps audiences to be in charge of
their own programming. Recommendations on the basis of
their behaviour is an extra and this model can be refined
in great detail. For example, besides taking past behaviour
into account, we can check what other users (or friends
in their social network) liked in a similar situation. On big
screens not all viewers are known and therefore the time
of the day is important to avoid a mismatch when different
persons with different profiles and ages are watching.
But even without personalization, playlist programming
of virtual (thematic) channels on top of the on-demand
available archives provides the opportunity to reach new
audiences. We can also use the various platforms to extend
a programme by continuing online after a broadcast, or
extend the coverage of a live event on different platforms
using their specific capabilities to enable the viewer to
continue watching or listening everywhere. A format
used very successfully in the radio sector is to allow the
audience to switch between different devices wherever
they are, optimizing the experience of 'being part of
the event' and showing video on the TV and interactive
elements on the app/webpage.
Knowing your audience and personalization are closely
related. We could say that instead of being a broadcaster
PSM should invest in customer-relation management to
be able to serve their audiences in person. This is a shift
from addressing a mass market only to addressing a mass
market with general media plus a personal market with
precision media.
Use of apps
Applications are becoming the main user interface to
access content. On almost all connected devices the
user starts by opening an application and then chooses
the content he want to consume. Even some modern
connected televisions start up in a software environment
first. These new applications offer the opportunity to create
one user interface to navigate all services of a specific
brand, in our case a PSB. Switching between linear and
on-demand, television and radio, textual and interactive
services, is becoming normal. Apps are bi-directional
instead of being a single-source product like watching
video. It is a richer experience than an EPG as it merges
linear with on-demand services. The guidance role of PSB
is therefore more horizontal, detached from linear only.
The application is part of a network and can be started
from different devices or can drive connected screens. The
role of the remote control is changing from a pointer to
being more like a computer mouse. Users can also interact
by means of touch screens on their phone or tablet or by
voice control.
The best applications will be those with the best graphical
user interface (GUI) unlocking all these functions in an
'intuitive' manner and first and foremost making it possible
to access the desired content as fast as possible. Metadata
describing programmes and parts of programmes
determine whether content can be found inside the app
or externally via search engines indexing what is available
on a certain distribution platform, be it Internet or a set-
top box from a cable operator. If content is 'King' then
metadata is 'Queen'. Applications are becoming integrated
services for broadcasters. In many countries the links
to HBB applications are part of the broadcast signal,
redefining signal integrity.
Multi-platform availability
Availability on different devices and platforms with on-
demand, live or interactive services is crucial if PSMs are
to be found and build up a direct relationship with their
audiences. The modern broadcaster therefore needs
to adapt to different techniques quickly and the vast
fragmentation of the market does not make this easy.
We need only think about how the tablet has become
tremendously important in only a few years to get a feeling
of how quickly changes can happen. The operating systems
Android, IOS and Windows set different requirements
in how media can be played or applications can run. New
versions of these systems are launched almost every six
months, introducing new functions that do not work on
older ones, giving an idea how fragmented this device class
is. Let alone the other popular device classes, such as game
consoles or for that matter the various browsers that are
used on devices that deliver access to the internet in the
broadest sense. Besides technical limitations there are also
business reasons why all devices and platforms are not
open for broadcasters to deliver their content to.

13 
For on-demand (non-linear) viewing it is to be noted that 8090% of Android smartphone and tablet mobile traffic is already being off-load-
ed to private Wi-Fi, e.g. within the end-users home. Mobile broadband networks account for only 1020 %, especially for long media formats
(see 'Impact of traffic offloading and related technological trends on the demand for wireless broadband spectrum' Report for the EC by
Wik Consult and Aegis). A recent European Commission study found that 71% of all wireless data traffic delivered in 2012 to smartphones
and tablets in the EU was delivered using Wi-Fi, possibly rising to 78% by 2016 (http://ec.europa.eu/digital-agenda/en/news/study-impor-
tance-wi-fi-socioeconomic-benefits-using-small-cell-infrastructures).
ANNEXE 8
Gatekeepers and the industry
There are various gatekeepers that decide what content is
available for the end-user. Often they run their own service
with a specific user interface. These operators can be cable
or IPTV operators delivering managed content services but
can also be OTT providers on the open internet. This influ-
ences the conditions under which they allow PSM content
to be distributed on their network, service or device.
CE manufacturers can operate as gatekeepers controlling
their device and often run content services themselves.
They can demand that all content must be made available
via their paid service using specific (proprietary) tech-
niques or charge a fee if income is generated by content
offered on their platform. Other known models request up-
front payments in return for prominence on their platform.
When devices become popular and a PSB wants to follow
its audience it can be forced to comply with these condi-
tions.
Apples iPhone, for example, has a chip that can receive
FM radio but it is not activated. Both the listeners and the
content providers are forced to use applications made
available in the iTunes store to access streaming audio.
Apps are only accepted if they comply with the proprie-
tary technical ecosystem. Even the content of these apps
is evaluated and refused if it appears to be in conflict with
their (North American) values, which are different from
European ones, and some broadcasters applications have
been refused. Apple receives 30% of all revenue generat-
ed with applications available in the iTunes store and that
income surpasses their profit of selling devices, making
Apple the highest-earning media technology company in
the world in 2013. The next expansion for Apple is the iTV,
an application based television integrated into the iTunes
model. This Apple business model is an example for most
device manufactures and will guide their efforts to claim an
influential position in the value chain.
Other operators in the content-providing sector do not
'own' the playout device but concentrate on the playout
infrastructure. There is a difference between managed ser-
vices and so called over-the-top (OTT) providers. Managed
services are fully controlled playout infrastructures most-
ly owned or exploited in partnership with the company
that controls the so called 'last mile'. These are the cable
companies, telecoms and internet service providers (ISP)
that act as content aggregators delivering IPTV or other
content subscriptions. Broadcasters provide their feeds of
linear and on-demand content to these operators and they
then distribute them with a high quality of service to their
subscribers. In some countries a retransmission fee is paid
but normally these fees are not high compared to what
commercial broadcasters receive, as must-carry regula-
14 
Foster, R. (2012). News Plurality in a Digital World. Reuters Institute for the Study of Journalism, University of Oxford.
15
tions makes it compulsory for these operators to deliver
the main linear PSM channels to their customers. There is a
growing trend for these companies to sell triple- or quad-
ruple-play bundles, where the end-user pays one monthly
fee for the content proposition, but also for a telephone
line (and a mobile phone connection in the quadruple case)
and an internet connection. These providers of managed
services play a gatekeeper role particularly in the interac-
tive sector. As they intend to push their own interactive
portals, other initiatives are often not technically supported
or in some cases are even blocked.
In general, owners of re-distribution platforms can block
PSM services but they can also act as a gatekeeper by
blocking user data or recommendations. As it is essential to
have a direct relationship with the audience to interact and
understand them, it is important to get (real-time) statistics
on when, how long and with what device programmes are
consumed. For PSM it is important to guide the audience.
With linear broadcasts this is provided by programming.
With an on-demand service this function is replaced by
recommendations. Third-party OTT platforms use their own
recommendation algorithms and do not accept guiding
roles from 'external' companies.
A recent study by the Reuters Institute refers to these ac-
tors as digital intermediaries and identified four different
types: news aggregators, search engines, social media and
digital stores.14 Whereas the notion of platform (or inter-
mediary) indicates that they adopt a neutral approach to
the content they carry, they might in fact have a substantial
impact on control access. Their decisions not only have a
direct impact on the availability of content (becoming real
bottlenecks), but they can also affect the definition of the
public/political agenda (due to their editorial capacity) as
well as the economy of content provision.
OTT services
OTT services are delivered over the open internet without
involving the network owner. Media catalogues are
provided via playout facilities reaching from ingestion
to billing. When there is no subscription model involved
advertisements are used to generate the revenue. YouTube
used to be a user-generated content (UGC) site where
people or companies could start their own online channel
by uploading their videos. Its success story is well known
and the Google subsidiary is nowadays investing in
studios to make its own shows and is also providing online
distribution services for live feeds that are also used for
some PSM recordings in Europe. Less well known is the
fact that one-third of the content available on YouTube
originated in traditional media before it was uploaded
by users. Other examples are Spotify and Netflix, both
delivering streaming catalogues of on-demand content
that can be streamed via personal playlists. Various
16
investigations have shown that since Spotify has been
available there has been less pirated content downloaded,
proving that easy access to good content is enough reason
for end users to pay. Netflix users generate 40% of the
total US traffic on internet and the company has produced
its first drama series that was made available to all its
subscribers at once.
Even though the big three OTTs seemed to be competitors
of the music-CD and rental-video market, they are slowly
moving into the PSM sector as content producers or
content platform providers. When their popularity grows,
these services compete with traditional broadcasters to get
the attention of the audience. These big OTT companies
invest in their playout facilities by installing proxies in
media gateways all over the world even in the ISP networks.
Contrary to the managed networks, their services are using
the best-effort internet and can only optimize in terms of
quality of experience. All three companies are investing
in user interface, personalization, recommendation and
findability of content. This brought Google to start its own
GoogleTV platform trying to aggregate all available online
content into its own portal, but this product has not yet
proved popular with the general audience.
Future developments in online distribution
The use of public clouds for distribution can also bring the
benefit of a better connection with certain internet service
providers (ISPs), resulting in improved quality of service for
the end user. Normally broadcasters deliver their content
either via (private or public) peering and CDNs. Nowadays
it is possible to add Amazon's connectivity to the equation
by using its cloud (CDN) services to upscale distribution
nodes. Imagine the possibilities if content providers can
themselves temporally install caching nodes deep inside
third-party networks close to the end user. Distribution will
take on a whole new meaning as this up- and down-scaling
of caching at specific locations could be automated on
the basis of real-time information telling what part of the
internet network is congested and how expensive it will
be to use alternative online delivery routes. This again is
the promise of service defined networks (SDNs) and it is
expected that CDNs in the future will also be able to deliver
this kind of 'cloud' services.
When fibre to the home (FFTH) or to the nearest curb
(FFTX) reaches a mass market a lot of internet capacity
problems could be solved making it a viable distribution
platform for all broadcast services. In this scenario
broadcasters could, in theory, even become their own
distributors either by (paid) peering relations with the
owners of the fibre ring or by leasing a dedicated fibre line
in this connection for a fixed amount per household.
15 
Berec, (2012). An assessment of IPinterconnection in the context of Net Neutrality. Berec Body of European Regulators for Electronic
Communications. http://berec.europa.eu/
Broadcasters will have to gain an online distribution
architecture that allows them to balance their traffic over
different CDNs and peering connections (both private and
public). This will allow them to keep their independence
in distribution and avoid vendor lock-ins. The trend shows
that internet techniques are becoming more capable for
media delivery but the question is whether this capacity
will be available for PSM.
ISP as digital intermediaries
The smaller ISPs and local network owners are slowly
disappearing. They are overrun by so-called eyeball ISPs
providers with a high public profile that are often also
Tier 1 providers, meaning that they actually own parts of
the internet backbone. Most access providers are, besides
network owners, also content aggregators and bundle
those services into one consumer offering. The ISP solely
living off data delivery seems to be a dying breed.15
Its obvious that there are several conflicting objectives
for an organization that tries to sell managed content
services, open internet and transit capacity. In recent years
broadcasters have made considerable efforts to improve
the quality of experience (QoE) by arranging private
peering with the big ISPs and using CDNs (content delivery
networks) to cache content deep in the network, as close
as possible to their audience. This was welcomed by the
departments of triple-play operators that sell internet
access to end-consumers, as it improved the experience.
But the content aggregation departments selling, for
example IPTV or cable TV subscriptions, consider OTT
services on the open internet as cannibalizing. At the same
time the department responsible for transit turnover is
not happy with private peering because typically it would
earn revenue for carrying the data. For this reason some
of those global operators are considering changing their
policy, putting an end to private peering arrangements
that push more data into their network than the outbound
traffic over that peered line.
The lobbyists of these big eyeball ISPs and Telcos are
pushing for a two-sided market where money can be
earned not only from end-users renting access to the open
internet, but also from the content providers who want
to reach that audience. The two-sided market risks are
creating a situation where investments are not spent in
improving data flows over the open internet in general, but
are instead concentrated on the data of companies that
can and will pay to reach their audience. Other content
providers would be relegated to internet exchange points
and the question arises as to why an eyeball ISP would
invest in resolving congestion on those traffic flows? In the
quest to generate more turnover they develop their own
local paid CDN services while introducing data caps for
ANNEXE 8
end-users, limiting the quantity and quality of data. This is
especially limiting for the amount of video an internet user
can consume. On the internet especially PSM dependence
on third-party distribution networks will grow and it is
therefore expected that more budget will be spent on
distribution by 2020.
Regulatory framework
As digital intermediaries are often large, powerful
organizations that operate at a multinational if not global
level, the need for more coordinated policy approaches
securing universal and easy access for citizens increases.
In this respect, public policy safeguards for transparency,
monitoring access practices and effective backstop
powers for regulatory authorities where platform practices
become a threat to plurality will provide citizens with the
necessary trust to use and engage with these platforms.
Convergence is adding significant complexity to the
access value chain. It puts internet companies, device
manufacturers and other platform operators in a key
position to decide whether and to what extent media
services are accessible to the public. Reaching all audiences
with diverse content lies at the heart of the PSM model.
The DTT free-to-air model is therefore ideal for linear
broadcast services and this model should be extended to
online content distribution models which enable as many
citizens as possible to actually access a plurality of media
content. Universal access to networks, devices and other
platforms should therefore be sufficiently guaranteed,
which currently they are not.
It is in the citizens interest to have access to a broad range
of media services, in particular those deemed important
for the democratic, cultural and social needs of European
societies. In a converged media environment, there are
further opportunities to foster fundamental rights and
democratic values. However, if PSM are to fulfil this role,
they must be visible. Currently, national must-carry,
due-prominence or must-be-found rules guarantee the
visibility of services of public value on the main TV (and
radio) platforms and help to make sure that all citizens can
actually consume media content of public value. However,
convergence creates challenges for existing prominence
regimes, which could fail to fully reach the public policy
objectives for which they were originally designed. The
EBU strongly advocates an appropriate prominence
approach as a key component of any policy framework
relating to the access to platforms.
By using specific traffic-management tools, network
operators providing internet connectivity can act as
gatekeepers for data-traffic flows to end-users as we have
seen above. This entails the risk that users may no longer
have full access to a plurality of information and the quality
content of their choice. A strong regulatory framework
is needed for net neutrality, both at EU and national
level, reflecting the fact that the openness and non-
17
discriminatory features of the internet are key drivers for
innovation, economic efficiency and safeguarding media
freedom and pluralism. As a general principle, providers
of electronic communications to the public should not be
allowed to apply any traffic management practices that
would block, throttle or degrade any content services.
Non-discrimination is important to prevent providers from
privileging their own content services or applications,
or those for which they have concluded commercial
arrangements. In addition, it is important to ensure that the
development of managed services/networks (such as IPTV)
by providers is not detrimental to the open internet.
Multimedia consumption
Multi-screen consumption also has an impact on the
content creation process. Content dynamics are different
for mobile and online with regard to storytelling and
(technical) representation when compared to productions
for large screens. Internet also introduced a different speed
of delivery. News cannot wait until 8 pm. High-quality
journalistic reports must be available, especially online, at
the very moment the news breaks. Later during the day
these reports can be part of another news programme
covering different subjects on television. The circle of the
integrated workflow is complete when this programme
ends up in the catch-up service. Storytelling starts on the
internet before the event, and follows up after the event,
with modern tri-media workflows. Digital archives will
become a multimedia content repository, not only storing
the radio and TV broadcast but also the embedding in the
application environment.
The role of metadata is more important than ever. Metada-
ta aggregation throughout the production chain is crucial
for findability in the distribution domain. For example there
is information in call-sheets about the location where a
specific item is shot, which can play a crucial role in the
user interface of an app where the content is published.
Job profiles will change from specialized media person-
nel to multi-skilled highly trained staff on a technical and
creative side who work together in multi-disciplinary teams
combining programme and technical departments. And at
the same time these production chains need to be opened
up to partners and also the audience itself. These new
workflows will introduce new business opportunities within
a distributed production environment with fully networked
broadcast stations.
One of these opportunities will be found in highly
flexible cloud solutions. Overall, production efficiency
must become better, faster, with a higher output without
straining the content budget. Cost for productions will
be tailored, with genre and intended audience as the
main classification factors. The convergence between IT
and traditional production technologies will evolve and
it is expected that the traditional broadcast equipment
manufacturer will disappear. This will also have its effect on
the influence factor PSM has on the development of new
18

technologies as the lifespan of special media techniques

becomes shorter.

In general, higher picture quality makes people watch more

TV. When all other thing are equal, viewing time, sense
of involvement, attention span and retention, all increase
with technical quality. Investment in quality is therefore
necessary but should be considered as a evolutionary
rather than a revolutionary process. One of these quality
aspects is increasing picture resolution frame-rates driving
an evolution from SD to HDTV and UHDTV. In the screen
ecosystem TV sets get larger every year while the price
remains the same. DVB members estimate that ultra-HD
sets will be available in 2014 and super hi-vision sets in
2020, while pay-TV satellite broadcasts of ultra-HD may
begin in 2015. UHDTV also requires more bandwidth in
the distribution domain, even when new compression
techniques, such as HEVC are used. This will put more
pressure on the spectrum discussion and many expect that
these qualities will be distributed using internet delivery.

Increasing production efficiency

Production can be made more efficient by means of
technological advancements, optimized workflows and
organizational changes, as well the use of cost, and energy-
effective production systems. Multiplatform production
systems are a prerequisite to saving costs and staying
competitive. Silos in radio, online, and TV production must
disappear, and streamlined operations in programme
planning are key. The digital archive becomes a common
media repository and convergent IT broadcast media
infrastructures will become a cost-effective and flexible
infrastructure backbone. In such a framework, efficient and
seamless information management is essential.

Collaborative production, networks, clouds and

digital archives
The fully networked broadcast organization, and remote
production scenarios even for live events will become
reality with new network technologies. The dominant
role will be played by IP-based networks but other
technologies, such as time-synchronizing techniques
like audio-video bridging (AVB) may add to a variety of
technology offers and complexity for broadcasters. It will
be pivotal that new network technologies do not simply
replace current linear infrastructures (e.g. SDI) but that
new workflows, and therefore business opportunities, are
provide by networked technologies.

Distributed production facilities support the idea of cost-

effective and fast creation and post-production of content.
Many services will be distributed to highly flexible cloud
applications, however it will be a constant challenge to
evaluate whether private, public cloud or in-house storage
are adequate for a certain business case and whether they
provide the expected quality.