The document discusses trends in the media landscape including: 1) The landscape is becoming more complex with social TV, fragmented TV, and networked TV as viewers have more choices across hundreds of channels and millions of options. 2) There are increasing opportunities for secondary rights markets as linear deals shift to formats and exploiting complex markets. Primary markets will need to support secondary rights and vice versa. 3) Rights markets will move from simple to complex sells, incorporating formats, co-production, websites, publications, and licensed products. Distribution and monetization will also become more complex.

1. Media by Definition Iolo Jones CEO, TV Everywhere

2. The technology landscape is becoming every more complex Social TV > Fragmented TV > Networked TV From a few channels to hundreds of channels to millions of channels Fragmentation More devices ‘MeTV’ – TV Everywhere Shift in the balance of power, e.g. Hulu, Samsung In an always-on age, what is content ?

3. Increasing opportunities for secondary rights markets Linear deal > Formats > Exploiting complex markets The long tail hasn’t been profitable to date But will need to be in future Importance of primary markets for secondary rights and secondary markets for primary rights

4. The New Rights Markets Simple sell > Complex sell Formats Co-production ‘360’ – related websites, publications, network services Licensed products Advertising & sponsorship rights Complex distribution patterns Complex monetization models - £ > p

5. The failure of DRM Open Market > Restricted Market > Measured Market Restricting content hasn’t worked (with a few exceptions) Tracking has become more important than policing The market works against DRM Lessons from music Requiring a fundamental shift in business models

6. Watermarking & centralised hosting Physical > Download > Always on The ability to control distribution centrally Requires ‘always on’ streaming e.g. Bundling music with mobile phones e.g. Digital cinema distribution

7. Towards an online rights marketplace Rights markets are highly inefficient Almost no rights are traded online More important in ‘self-funding’ environment Fragmented market requires wider distribution to achieve profitability Opening new, unexploited markets Automating otherwise unprofitable sales

8. The future - consumer aggregated buying Consumers use network effect to buy rights e.g. Expatriates group to buy rights to sporting events Might spin off social networks, e.g. Facebook

9. Trends Production costs will need to be covered by multiple income streams Formats, licensing and spin-offs will become far more important A gradual move to online distribution (from marketing to display) Less revenues from more sources Rights will need to be actively managed using sophisticated tools