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LECTURE L15THE BROADCAST CENTURY

Why?

100 million hours / year

200 million minutes / day

Where do people find the time?

EARLY ENTERTAINMENT

"The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular?"

-- David Sarnoff's associates in response to his urgings for investment in the radio in the 1920s.

Early music was performed live

Story telling

People got together to sing the songs of the day

Culture

Participation: everyone was anentertainer

Read-Write Culture

Edison’s Phonograph 1877

“The Talking Machine”

Emile Berliner’s Gramophone, 1889

First radio broadcasts are in 1906

Commercial radio broadcasting starts in 1920s

Public’s need for informationEquipment manufactures Amateur operators

http://www.tuberadioland.com/westinghouseWR-30_main.html

Westinghouse Model WR-30 Gothic Style Tombstone Radio (1933)

ENTER THE TV

For God’s sake go down to the reception and get rid of a lunatic who’s down there.

He says he’s got a machine for seeing by wireless! — Editor of the Daily Express in response to a prospective visit by John Logie Baird

John Logie Baird

Scottish inventor

Experimented with wirelesstransmission of images

First public television broadcast was 27. January 1926 in London

TV broadcast start in the 1930s

BBC starts broadcasts in 1936

Slow increase in consoles

Lack of standard

Color in the 50s

RCA begins production of its first color-TV set for consumers

Low performance and high price

In 1950 a market has emerged

US data:

1946 there are 20.000 TVs, 18 stations

1953 there are over 20million TVs – 44% of households, 300 stations

TV in Iceland in 1966

Source:  DataMnitor

The global broadcasting & cable tv market grew by 4.6% in 2011 to reach a value of $400.6 billion

The market is expected to reach almost $475,000 million by 2015

Why is TV so powerful?

TV Watching

On average, individuals in the industrialised world devote three hours a day to watching TV

On average, individuals in the industrialised world devote three hours a day to watching TV

TV Watching

Gallup poll on TV Watching

Two out of five adult respondents and seven out of 10 teenagers said they spent too much time watching TV

Usually people are embarrassed to admit to watching much TV

TV Watching

A Formula for Addiction

TV is passive and relaxing

Reduces alertness

Effect is fast

Problem: TV addiction

A Formula for Addiction

23% of UK teenagers claim to watch less TV and 15% admit they read fewer books now that they have smartphones

TREND

1900 2000

Edison’s Phonograph

1877

Emile Berliner’sGramophone

1889 Radio

Broadcasts1920s

TVBroadcasts

1940s

The RecordIndustry - LPs

1950sCDs

1980sDVDs1990s

THE BROADCASTING CENTURYONE 2 MANY

BUSINESS MODELS GET ESTABLISHEDREAD ONLY CULTURE

Lawrence LessigLaws that choke creativity

TV GOES DIGITAL

Analog Standards

NTSC, PAL, SECAM Broadcast: VHF (54-88 MHz, 174-216 MHz) UHF (470 to 890 MHz) Cable

Source:  HowStuffWorks.com

Digital TV

DVB, ATSC, ISDB, DTMB, DBM H.262/MPEG

Transmitted Radio (VHF, UHF, SHF), satellites, cables, fiber or ADSL Benefits Better picture and better sound – more resolution Better use of bandwidth using compression Most countries switched off analogue transmission 2007-2009

Source:  HowStuffWorks.com

Digital TV

Normal TV has the ratio 4:3 (1,34:1)

HDTV has the aspect ratio 16:9 (1,78:1)

NEW SOLUTIONS

DIGITALFORMAT

1900 2000

Edison’s Phonograph

1877

Emile Berliner’sGramophone

1889 Radio

Broadcasts1920s

TVBroadcasts

1940s

The RecordIndustry - LPs

1950sCDs

1980sDVDs1990s

THE BROADCASTING CENTURYONE 2 MANY

BUSINESS MODELS GET ESTABLISHEDREAD ONLY CULTURE

INTERNET

Source:  Economist    -­‐  Coming  soon

End of an Era

Digital Content is causing disruptions in the conventional value chain

DVD sales are slowing

Distribution of content is going to digital mediums

Electronic Programming Guide

Additional Information

Time shiftDigital video recorders (DVRs) Recording television transmissions for later viewing

Examples TiVo, ReplayTV, DirectTV

Place Shift

Watch your TV everywhere in the world

Technology that allows you to watch your TV over the Internet

Slingbox

Video On Demand

Pictures from www.oscar.com

VoD - Video-on-demandGoodbye to of the Video StoreChange in distribution of contentDelivered over the Internet, ADSLor cable, including fibre

Internet Video - “Over the Top”

100 hours of video are uploaded to YouTube alone every minute

Video gobbles up so much data that by 2018 it is likely to account for 80-90% of global consumer internet traffic.

Streaming Videos

Netflix accounts for 35% of Internet traffic

People spend 1 billion hours / month watching Netflix

THE DIGITAL DECADE

THE CONTENTESCAPESTHE FORM

INTERNET DISRUPTION

BEGINS

DIGITALFORMAT

1900 2000

Edison’s Phonograph

1877

Emile Berliner’sGramophone

1889 Radio

Broadcasts1920s

TVBroadcasts

1940s

The RecordIndustry - LPs

1950sCDs

1980sDVDs1990s

THE BROADCASTING CENTURYONE 2 MANY

BUSINESS MODELS GET ESTABLISHEDREAD ONLY CULTURE

END OF BROADCASTING

Where do people find the time?

TV

200 billion hours / year

Watching TV

100 million hours / year

2000 wikipedias / year

Clay ShirkyOn Cognitive Surplus

Cognitive Surplus

Since the 1940s people have been passively consuming TV

New people are learning how to use free time more constructively for creative acts rather than consumptive ones, particularly with the advent of online tools that allow new forms of collaboration

Read-only Culture

f(x) = axk + o(xk)

MOVIESTARS

Chris AndersonOn the Long Tail

Hit culture

Bottlenecks in the Distribution channels

The Power Law

Pareto Principle

For many events, roughly 80% of the effects come from 20% of the causes

Economy ofSCARCITY

Economy ofABUNDANCE

LONG TAIL

What percentage of the top 10,000 titles in any online media store (Netflix, iTunes, Amazon, or any other) will rent or sell at least once a month?

99%

USERGENERTATEDCONTENT

EVERYBODYIS A

PRODUCER

Felix Arvid Ulf Kjellberg

PewDiePie

Swedish video game commentator

Annual Earnings: $7 millionSubscribers: 33,528,405Views: 7,400,126,842

MANY 2 MANY: PEER INTERACTION

ESTABLISHED BUSINESS MODELS GET DISRUPTED

READ WRITE CULTURE

ONE 2 MANY: BROADCASTING

BUSINESS MODELS GET ESTABLISHED

READ ONLY CULTURE

BEFORE NOW

CONTROLLED BY GATEKEEPRS

CONTROLLED BY CONSUMERS

LECTURE L15THE BROADCAST CENTURY