This document is the support i have used while the introduction keynote i have done for the CrossVideoDays. This is a kind of state of art of the online video and connected TV ecosystem + some inputs and questions about the consequences on the video content value chain

1. Cross VideoDays OpeningKeynote

2. Let’s size the online videomarket

3. An exploding market ! 1bn consumers of online videos 14+hrsa month- people spent watching online videos 201 views per user in 2010 +71% views/pers of online videos 2010 40% of the traffic 2014 57% of the traffic ComScore Nov 2010 60% Video traffic in the world X5 Share of the data mobile traffic used for video in 2011 35hrs of video uploaded/min 2bn views per day 700bn views per year Source YouTube Dec 2010 Etude Cisco 2010

4. An exploding market ! Shares of traffic by uses Online VideoStreams / Quarter 400 000 000 Broadcast networks 350 000 000 Webmedia Brands VideoTraffic 51% 100% 300 000 000 Other 250 000 000 Telnet NewsGroup DNS Email 200 000 000 Magazine publishers P2P Music labels 150 000 000 NewspaperPublishers 100 000 000 FTP 50 000 000 Radio Broadcasters 0 Web Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 2010 2008 2009 0% 1995 2010 Source : Brightcove / TubeMogul Mai 2010 Source : Limelight Network 2010

5. Led by the European and American TV Channels Audience Share by category & geographical zones Brands Broadcasters Magazines Newspapers Online Media 4,19mn 100% Others 3,36mn 75% 2,53mn USA 50% 2,30mn 25% 1,26mn EU 0,43mn APAC 0% Brands Broadcasters Magazines Newspapers Online Media APAC EU USA Others Source : Brightcove Online Video & the Media Industry Q4 2010

6. An averageVideolength short but verymisleading ! 2,48 l 2,36 1,22 l 1,24 1,57 l 2,01 1,52 l 1,30 US l EU US l EU US l EU US l EU Broadcasters Magazines Music Newspaper Source : Brightcove Online Video & the Media Industry Q4 2010

7. Increased by the «Connected TV » Phenomenom ! 42,2% of the TV are really connected Connected TV devices worldwide trend 2014 2011 200M Connected TV devices Connected Blu-Ray Players Connected Game Console Connected Digital Video Players (Set Top Boxes) 18% of the TV 100M Are really connected 0M 2010 2010 2010 2010 2010 2010 Source : Parks Associates 2010

8. The connected TV more than a device, an ecosystem… @

9. …whereeachscreen has itsown use… Couchpotato Couchpotato Sitting Standing up Position Personal Private Uses Family Personal + shared Video News Game Work Sociabilisation Entertainment Sociabilisation Work Games News Entertainment Sociabilisation Goals ***** **** **** ** Incoming data * ** **** ***** Outgoing data

10. …with a specific vocabulary ! Uses Business Fragmentation Cord Cutting Piratage (P2P, Streaming) Disintermediation Format Monetisation(PPV, Pub, SVOD, Hybrid) unlinearisation Pre-financing Multitasking Dual Screen Audience tracking Social TV OTT Real Time Bidding Enrichment Agregation/Curation Models open/closed Recommandation DRM /Fingerprinting Technology Standardisation OS / Framework Android / iOS / Constructeur Synchronisation HTML 5 / Flash CloudComputing SDK WebM/H264 Open Source

11. Cock-a-doodle-doo !

12. The IPTV Landscape in France 58 377 000 TV owners in France 2010 6,8 Millions IPTV In France (WorldWide Leader) 2012 7,8 Millions 59% of the TV will be connectable Main activities in France (Src TNS Sofres 2010) Satelite 17 359 000 (26%) DTT 28 723 000 (43%) Watching TV 3h39`(+7min) ADSL 14 368 000 (21%) Sleep Cable 6 739 000 (10%) Work Srce : Mediametrie January 2010

13. The emerging second screen landscape Penetration rate 36% Means 20 880 000 people Penetration rate 72% means 17 400 000 households Penetration rate 5% Means 1 200 000 households

14. Withclearimpacts on consumers!

15. Content is not just about the linearscheduleanymore 33 Million people know whatVOD is (86% of the internet users) 4,6 Million people use VOD (27% of the internet users) 90% VOD penetrationforecastedby 2015 75% of the VOD views in 2010 wereCinema and Premium Releases 64% of the french tv shows are available on catch up TV Whichmeansaround15000 videosavailable Do youwatch online programs (US internet usersJanuary 2011 lab42 Study) - de 18 18-24 (34h) 25-34 35-44 45-54 55-64 +90% In one year of DVR use 80% 79% 72% 51% 36% 31% Means 68% TV Soit 19h

16. Consumers are multitasking ! French fiction TV fans are interested in additional content on internet, related to what they are watching (which goes to 30 % for the 15-24) 59% of TV Viewers Are «Multitaskers» (means 2h30 during december2010) Src : Nielsen january 2011 20% Would you be interested by a more interactive TV 98% Of Ipad Owners uses it regularly watching the TV 86% Of smartphone owners use it regularly watching the TV Src : Yahoo! 2010 Src : NY Times Aout 2010 Very interested interested A bit Interested not Interested

17. 2nd Screen : The hub for Social TV Part de temps passé par type d’usage Typicalactivitiesdone on the 2nd screenwhilewatching TV 33% Using mobile apps Browsing the internet 37% 40% Social Networking Textingwithfriends & family 56% Source : Nielsen Q1 2011 (mobile ConnectedDevice Report)

18. The Social TV Go every day on internet while watching the TV During SuperBowlin 2010 37% Use social networks such as Facebook or Twitter while watching the TV 169 million viewers = 4000 tweets / sec During the last seconds 44% Have ever chatted about a TV content while watching it 37% In 2011 1b posts will be written via About a TV show Src : Deloitte Have already shared a TV content via social networks 19% Use social network to improve their TV experience 44%

19. And clear impacts on the value chain !

20. Internationalisation…

21. … Illegal downloads… The 10 movies most illegally downloaded in 2010 = 92 480 000 downloads = $400 Millions of shortfall 450 000 movies illegally downloaded per day in France 43,5% of the 11-15illegally downloaded movies and series(1/4 asked by their parents!) 76% of the pirates say they would have preferred watching their content through TV if they would have had the opportunity MegaUpload 45 millions of U.V/ day = 1% of the worldwide traffic = more than Facebook Source : Jumpwire Octobre 2010 Source : Source Sandvine fev 2010

22. … Audience fragmentation… Maturity of the highbandwith Historic love for video + confort of visualisation = growth of the demand Internet streaming growth(low distribution costscompared to TV) Worldwidcompetitioninscreasing Multiplication of the online videodevices(Computers, Tablettes, Smartphone, TV) Multiplication of the videooffers(Hertzien + Satellite + Cable-> Internet + Cable + Satellite + DTT + IPTV) Audience Fragmentation 35% 30% 25% TF1 (26%) DTT 20% FR2 (16,7%) 15% FR3 (11,8%) 10% M6 (10,8%) 5% FR5 (3,1%) Canal+ (3,1%) Arte (1,7%) 0% 2010 2009 2008 2007 Source : Annual report of the CNC 2010

23. … leading to lowerinvestmentcapabilities… Maturity of the highbandwith Historic love for video + confort of visualisation = growth of the demand Internet streaming growth(low distribution costscompared to TV) Worldwidcompetitioninscreasing Multiplication of the online videodevices(Computers, Tablettes, Smartphone, TV) Multiplication of the videooffers(Hertzien + Satellite + Cable-> Internet + Cable + Satellite + DTT + IPTV) Audience Fragmentation 35% 30% 25% TF1 (26%) 20% FR2 (16,7%) 15% FR3 (11,8%) 10% M6 (10,8%) 5% FR5 (3,1%) Canal+ (3,1%) Arte (1,7%) 0% 2010 2009 2008 2007 Source : Annual report of the CNC 2010

24. … Shakingup the value chain Hier Aujourd'hui Other public investment (Regions, Departements, Cities….) Other public investment (Regions, Departements, Cities….) Europeanhelps Europeanhelps CNC CNC WorldWide distribution WorldWide distribution French Channels French Channels Producers Producers Authors Authors

25. Where TV channels are playing a leading role… …for the incomes… …and the executive production! Foreign incomes 8,4% Editors &Distributors 77,8%(+54,61%) Producers 33,3% Mandats 17% TV Channels 32,4% Theatres 17,05% (+25,03%) Sofica 4,3% Including 17% only for CanalPlus DVD & VOD 5,14% (+6,56%) CNC Helps Source : annual report of the CNC 2010 Source : Sénat – CNC Juin 2011 via @PLechevallier

26. So what are our challenges ?

27. Let’sbecreative in monetisationstrategies VOD Platform Consumer electronics Europeanhelps CNC FAI Editeurs mobiles Other public investment (Regions, Departements, Cities….) Lisencing Sponsoring WorldWide distribution Brand Content Product Placement Independent Video Ad Platforms (for ex : real time biddingplatforms) French Channels Monetisation Syndication Disintermediation

28. How to adapt to world wide competition? Latine America 2,3% 2006 > 2009 = -15% on exportations Today100M€ in exportations Which means10% of all incomes Middele Orient 4,6% Protect or attack ? HBBTV or HTML5 Get a critical size(Hulu, Netflix, YouView, what about France ?) Focus on the local content or International ?(some rumors speak about arrival of american studio in south of France) Localformat or exportable Mainstream or Segmenting ? And what about the « Media Chronology» ?S.Jobs: “You’ll Be Able To Watch A First Run Movie Before It Hits Theaters”(2 june2010) Africa 2,1% APAC 8,6% North America 9,50% Western Europe 62% Central Europe 10,50%

29. Help on standardisation! What about OS standards ? « Open » or « Closed »… …and what about web standards ! Languages Normes + Natively supported video format + Ogg Theora H264 VP8 WebM Internet explorer Mozilla Firefox Google Chrome Safari Opera NO 9.0 Depends 3.5 NO 4.0 3.0 NO 6.0 NO 3.1 Depends 10.5 NO 10.6

31. Product Placement

32. Transversal Advertising Platform

33. Content syndication

35. Brand Content

37. Editorial strategy

38. Production involvment

39. Services Cloud / Historic / Paiement / price policy / TV everywhere

40. Embrace social marketing issues

42. Dillema: Regulated or Unregulated! Should we protect the existing models and frames or find and promote some new ones ? But do we already have some really new models ? In any case, miracle solutions do not exist ! Only bringing together of solutions will be successful ! Legals Do we have to try to implement the same regulation for TV on Internet actors or the opposite ? Sacem / Hadopi CSA Taxes To preserve a fair competition, we need international tax harmonisation to avoid foreign companies avoidinglocal tax commitments French “Google” Tax just has been cancelled

43. As a conclusion « with every change in technology that affects consumer behavior, we always overestimate the impact in the short term, but then underestimate the full impact over the long term… » Louis Gordon Crovitz, Former Editor of the Wall Street Journal

44. Romain DROSNE CEO Plinkerswww.plinkers.tv www.twitter.com/plinkers