Bruxelles, November 18th 2013
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- Kristian Brett Pope
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1 Bruxelles, November 18th
2 CHILI The online Video-Store 2 Almost movies Pay for what you watch CHILI is available without a monthly subscription or contract There are no late fees, plus thousands of our movies are available to rent for just 3 Multi-device 5 per profile CHILI is the main Italian distributor of Ditigal Films in Streaming and Download CHILI, the online Video Store, is available to everyone, and does not need a decoder nor a specific ISP Almost titles are already available, between new releases and well known classics viewable in SD, HD e HD+ Download Adaptive Streaming Forthcoming TV Series HD and HD+
3 CHILI Multi-device 3 CHILI is available on virtually any internet-connected device on the market Smart TV, PC, MAC, Smartphone, Tablet I-Phone, I-Pad, Blu-Ray, Home Theatre, Smartkey TV OTHER DEVICES Each customer can activate and access content from up to 5 digital device
4 The richest offer in the Italian market 4 All the international Major as well as Italian distributors are on board Almost titles available with different encoding files, cross devices, streaming or download Best video quality, full HD and adaptive streaming CONTENT OWNER DEVICE VIDEO FORMAT BUSINESS MODEL T-VOD; EST Streaming; Download Final price (inc VAT) T-VOD: 1,99 5,99 EST: 6,99 16,99
5 Catalog composition for EU titles 5 Titles Transactions Number of EU titles has grown from 38% to 43% within the whole catalog Percentage weight of transaction from 20% to 27%
6 Promote, not protect! 6 Viewing of European works not driven by massive presence in the libraries but rather by quality of European works and easy accessibility. Capability of VOD players to increase share of EU works hampered by several factors: EU production is fragmented: producers are in many cases small and not well equipped to manage distribution effectively Titles without a theatrical release very often are not even distributed online., whereas digital distribution would boost their visibility and revenues Broader online distribution for EU works can be supported by: subject public financing mechanisms for EU works to an obligation to distribute on VOD platforms in day/date with theatrical release; Subject producers of EU works to an obligation to release their title through VOD if they do not manage to arrange theatrical distribution within a specific timeframe. Create a market place/one stop shop to support distribution of European works Creating customized area within VOD platforms to promote independent production VOD represents a unique opportunity for cultural diversity, EU content and niche products
7 Other issues related to online distribution of audiovisual works 7 Difficulty in providing titles when willingness to purchase/pay is higher VOD windows usually available 3 months after theatrical release too late! Theatrical distributors and broadcasters leverage their negotiating power to delay VOD availability of movies, through holdback or other mechanisms Late (or no) availability of titles is the major driver of illegal downloading! Rigidity in minimum prices, imposed in the contracts prevents flexibility and riduces already low margins Lack of competitivity vs. physical market Price of phisycal DVD/Blu Ray is more convenient than the one for online version Special content/bonus feature not made available to online version Lack of competitivity vs. international players US OTT leverage fiscal shopping and manage to apply lower retail prices US OTT leverage their negotiating power (due to larger domestic market) to obtain better conditions
8 Actions to stimulate the digital distribution 8 Reducing windows thorugh a cooperation with theaters The Commission could support trials for early digital windows on selected titles Gather and distribute datas to assess whether early digital windows represent an overall opportunity for the audiovisual market Identify mechanisms to impose ealy digital windows for titles not distributed through theaters Encourage more flexible commercial conditions to make VOD competitive Reduction of minimum prices Limitation of holdbacks if broadcasters are not exploiting them Support forms of cooperation bewteen digital and physical distribution (for example through the Ultraviolet Consortium ) Change VAT rules to create a level playing field VAT of country of destination should apply, to avoid fiscal arbitrage Making legal offer competitive, easily accessible and up to date is the most effective approach to fight piracy!
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