Highlands Local TV Forum

Chris Cook, Inverness

02 June 2010

'Not for Loss' TV – a Partnership Approach

Introducing Nordic Enterprise Trust (NET)

Society 1.0 - Decentralised and Disconnected

Presence in person

Society 2.0 – Centralised but Connected

Presence via intermediaries

Society 3.0 - Decentralised and Connected

Presence on the network

Media & Platform Convergence

01/06/10 9

Packets of Internet Protocol (IP) Data reach us in two ways

01/06/10 10

Broadcast delivery - 'One to Many'

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Web delivery - 'One to One'

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Broadcast/Web Convergence

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But no-one has yet developed the right devices

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...or the right enterprise model

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Let's have a look at Enterprise Models

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Public means State...

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...funded by taxes and public borrowing

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Private means Limited Liability Company

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Funded by Equity - shares with a par

value eg £1.00...

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...or Debt - loans secured by legal claims eg mortgages

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...giving two conflicting claims over the same productive asset

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Scots know it's not a case of 'either/or'

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'Not Proven' verdict is both...or neither

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NET works in this 'quantum' zone of uncertainty

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There’s a new legal animal out there....

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There are now 60,000 UK Limited Liability Partnerships (LLP)...

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...even in the Public Sector, where Glasgow has five municipal LLPs

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An LLP is a corporate body with limited liability....

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...and...errrr...that’s it!...

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As far as the Tax Man is concerned it is a Partnership

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Capital Partnership

Capital PartnershipCapital Partnership

InvestorsInvestors

CustomersCustomers

Managers

CustodianCustodian

% %

£

01/06/10 32

Equity Shares - % age shares in revenues or production...

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...or Units - redeemable in production

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Example: “The Art of Flirting” – a film incorporated as an LLP

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The actors received nth’s of the gross revenues...

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...I got 5%...and the producer the rest...

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...except that we needed lights, cameras, pizza, coffee

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Two Capital Partners invested £10k for 20% of revenues

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...if there are any

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Art of Flirting Partnership

Art of Flirting PartnershipArt of Flirting Partnership

Financial Capital(Investors)

Financial Capital(Investors)

ViewersViewers

Human Capital(Actors, Producer, Me)

CustodianCustodian

% %

£

01/06/10 41

The Capital Partnership aligns stakeholder interests....

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...but it’s not a magic bullet

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Conventional finance requires binding contracts

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Partnership finance requires consensual agreement

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But there may be no magnetism..

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...or partners may fall out...

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A Capital Partnership is not an Organisation

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...it does not own anything, do anything, employ anyone, or contract with anyone...

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...it is simply a framework within which the stakeholders self organise ...

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Community Media Partnership

Community PartnershipCommunity Partnership

InvestorInvestor

Community'Club'

Community'Club'

Manager

Custodian(CIC?)

Custodian(CIC?)

% %

£

01/06/10 51

….is a framework for provision of 'micro' TV and broadband 'not for loss'

How does it work?

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Community.....joins the Club

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Neither Public - taxes/ licence fee paid for open access....

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...nor Private 'walled garden' – invoices/ subscriptions and closed access

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A Club is Closed because only members have access....

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...but also Open because anyone consenting to club rules may join

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Service Providers – an open consortium

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Provides platform, devices, billing and content....

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...on an agreed revenue sharing basis

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Investors – share revenues of productive assets – Fixed Capital

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Working Capital? - 'Sell it forward' – Units redeemable in payment for use

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Community Media Partnership

Community PartnershipCommunity Partnership

InvestorInvestor

Community'Club'

Community'Club'

Service Provider

Custodian(CIC?)

Custodian(CIC?)

% %

£

01/06/10 64

If we link together and network 'micro'...

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...we get 'Macro'

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UK Media Partnership

UK Media Partnership

UK Media Partnership

InvestorInvestor

UsersUsers

Service Provider

CustodianCustodian

% %

£

01/06/10 67

...offers a completely inclusive framework for media

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Thank You

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