c-411036.1 regional licensing & availability anthony indaimo – withers llp head of...
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C-411036.1
Regional Licensing & Availability
Anthony Indaimo – Withers LLP
Head of International CommercialSpecialises in cross-board corporate and commercial law with an
emphasis on technology and media sectors
C-411036.1
Regional Licensing & Availability
• Overview
• Content & Licensing
• Regional Content
• Global Content
• Content Control
• Airlines & Passengers
C-411036.1
Overview
• Economy
• Manufacturers
• Airlines
— Low cost – Jet Blue, Ryanair, Zoom
— Business only – EOS, Silverjet, MAXjet
— International –Emirates, BA, Qantas
— New entrance – AirAsia, Kingfisher
C-411036.1
Overview (Cont…)
• Costs – fuel, Green Tax, etc.
• “Open Skies” pact
• Advances in technology
• Passengers
C-411036.1
Content & Licensing
• Audio/Radio• Movies• TV Programmes• Infomercials• Magazine Programmes• Destination Films
• News • Sport• Games• Gaming • Broadband• Live sports/news
C-411036.1
• Airline expenditure on IFE to increase:
— From US$ 1.86 Billion in 2006
— To US$ 2.44 Billion in 2011*
• In-flight interconnectivity solutions• Good news?
Content & Licensing
* (Source: IMDC Research)
C-411036.1
Content & Licensing
• Rights owner- widest distribution for greatest value• Traditionally rights divided by:
— Territory – domestic, regional or international — Language – original or foreign— Existing distribution – free to air, satellite— New technologies – telephony, broadband
• Exclusive or non-exclusive
C-411036.1
Content & Licensing
• Increase in airlines and technology • Better value and exposure for “premium” content• Separating rights into packages:
– Hand-held devices– In-seat AVOD– Live and Near Live– Advertising
– Pay per view– Gaming– Broadband
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• Low cost domestic US carrier• 36 channels • DTH Free DIRECTV®• Pay TV Fox In-Flight Movies
Regional Content
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Regional Content
• Can jetBlue model work outside US?• Depends on
— Common language— Variety and quality of content— Method of distribution
C-411036.1
Regional Content
• Virgin Blue – Australia— English language— 24 Pay TV Foxtel Channels— Live news/sport
• China, India and Middle East?• Europe?
C-411036.1
Global Content
• Global live TV on board anywhere, at any time• Inmarsat satellites means no ocean gaps• Global content?
– Availability
– Language
– Rights clearance
– Content control
– Piracy
– Price model
C-411036.1
Global Content Vs Regional
• Content mix – route specific vs general
— Regional news for a regional airline?— Passenger mix justifies more global news?
• Language – local vs different languages
— Audio translation?— Multiple language channels?
C-411036.1
• Taste and decency standard • More conservative than TV
• Ideal genres: comedy/romantic/light adventure• Similar standards for advertising
Content Control
—No airline crash scenes—Sensitive to terrorism—No nudity/sex scenes
—Sensitive to violence —No images of other airlines
C-411036.1
Content Control
Examples of:
• No images of other airlines – “BA Airbrushes Branson from in-flight Bond Film”
• Sensitive to terrorism - Virgin cancels “Loose Change” Documentary after complaints
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Content Control (Cont…)
• Film/TV content:— Tape – not time sensitive— Near Live – ability to edit— Live – technical difficulties
• Advertising content:— Near Live – ability to insert/change— Live – difficulty to insert
Some practical issues…
C-411036.1
Content Control (Cont…)
• Liability for Live TV— Disclaimer— Indemnity
• Branding— “Me too” content— Content brand vs airline brand
• Can airline customise its IFE brand?
Some practical issues…
C-411036.1
Airlines & Passengers
• Captive audience
• Demographic profiles
— Higher for passengers than TV markets— Business, premium and first class
• Business Model – combination of— Access fees, — Advertising, — Gaming and merchandising
C-411036.1
Airlines & Passengers (Cont…)
• Potential via Live TV?• Reality
— Viewership assumptions?— Advertising rates?— How is viewership measured?
Advertising Revenue…
C-411036.1
Airlines & Passengers (Cont…)
• Potential for services such as access, pay per view and merchandising?
• Reality— Will passengers spend?— Where is price point?— Useful lessons?
Passenger Revenue…
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