1

Next Media Programme SRA

Presentation to TIVIT board 25.3.2009Elaborated version 27.5.2009

2

Media and entertainment is a major industry

• Media and entertainment 1.700 Billion $ globally in 2008 (PricewaterhouseCoopers)• Includes traditional mass media,

internet advertising, internet connections, amusement parks, games& gambling (2.6%) and sporting events

• Long-time growth – rapid growth expected in digital services and games (expected yearly growth 10% to 2012)

• Global media market > global telecommunications market, also growth expectation higher

• Finland:• Mass communication:

2.4% of GDP in 2007, € 4.28 mrd (Statistics Finland, 2007)

• Games: appr. € 120 million in 2008 (Neogames 2009)

3

Technology pushes media consumption • Content creation, processing and distribution become digital ->

the value chain changes

• Media increasingly important in every-day life – ubiquitous wireless access through devices and displays at homes and public spaces

• New user interfaces including personalisation and context awareness makes media consumption even more convenient

• Mobile phones add interactivity to traditional media (Hybrid media)

• Metadata and semantic web enable automation of content processing

ConsumptionCreation Packaging Distribution

4

The power of the user grows

• User gets more power and choices ->impact on media use and advertising

• Individuals and enterprises – B2B users – are becoming more demanding in their tastes and choice

• Getting attention is difficult, because users are more immune to advertising

• User communities are defined by various criteria: local, personal interests, …

• User generated content important (rule 1/10/100)

• E-commerce shifts the focus of media and advertising to the internet

PC

Laptop

Mini laptop

Smart phone

MP3

Camera

Video camera

Ebook reader

Public displays

Paper

TV

FM radio

Mobile phone

5

Advertising is going digital

• Global advertising market is 475.8 B $ (ZenithOptimedia,2008)• Finnish advertising market (media space): 1.5 B € (TNS Gallup,

2008)• Economic slowdown will impact heavily on advertising

• The dependency on advertising revenues of media products and channels varies from 0% - 100%

• Traditional media – TV, newspapers, magazines – will suffer the most. Spending on B2B advertising will decrease more than B2C.

• Strengths of internet advertising• interactive• more targeted and measurable• often cheaper for the advertiser

• Advertising is the dominant way to earn on internet services• New: Permission marketing to build win-win relationships

6

The catalytic effect of media industry

The turnover (billion €) of the most important branches catalysed by the media industry in real figures until 2005 and their expected future development in the Finnish market.

7

Traditional media industry has to reinvent itself

• Traditional media companies (TV, newspaper, magazines, books) show moderate growth predictions: • Especially print products need to be developed into cross

media services

• The media industry has to closely follow new trends (social media etc) and adapt dynamically

• Sustainability and environmental challenges both in electronic and printed media

• Digitalisation opens up new internationalisation and export opportunities for Finnish media companies

• Fast and agile creation of digital media concepts and platforms requires efficient innovation ecosystems

8

Challenge: Professional versus social media

Factor Professional media Social media

Production tools Closed systems Available to anyone for free

Usability of tools

Requires specialised skills and training

Everyone can operate

Recency Longer publishing cycles, answering the questions: Who, What, When, Where, How and Why (6W)

Instantaneous, answering the questions: Who, What, When, Where (4W)

Business model Established Emerging

Accountability Clear responsibilities for quality and reliability

Not accountable

Source: VTT Södergård, TKK Giesecke, VKL Juhola

9

Media and entertainment industries are highly innovative

• Low R&D investments in traditional measures

• However, majority of innovations made by the creative industries are hidden

• Most of the R&D&I in creative and media industries is not measured using traditional innovation indicators

• Digitalisation and ICT technologies offer a wide range of opportunities

• Need to formalise the innovation process

Source: Miles & Lawrence 2008, Hidden innovations in the creative industries

10CT = Cooperative Traffic ICTNM = Next MediaFS = Flexible Services

TIVIT SRA PORTFOLIO 2010

14.4.2009 10

Service value net

Content value net

Network value net

HW value net

HW

valu

e c

hain

SW value net

SW

valu

e c

hain

(Meta

)data

and info

rmati

on

valu

e n

et

SW SRA,F-Secure?

NM SRA, Sanoma?

FS SRA, Elisa

FI SRA, NSN

CT SRA

DIEM SRA, Nokia

Bridgingrealities

Acting on data

Web ofservices

Internet everywhere

Productivity

EnablingCo-Creation

TIVIT strategy 2009 presentationFI = Future InternetSW = SoftwareDIEM = Device and Interoperability Ecosystems

11

Focus of Next Media Programme

“One-to-many” Prime-time Television Public Access TV Blogs

“Many-to-one” Media Search Portals Open Media Requests Content Forums

“Many-to-many” Multi-user Virtual Worlds Collaborative Media Wikis

“One-to-one” Physical Media Peer-to-Peer Messaging

Content InventoryContent Popularity

Mostly by ProfessionalContent Creators

Mostly by Prosumers orSemi-Professionals Mostly User Generated

Service ExamplesDistribution Metaphors

The Long Tailwhere “the total volumeof low popularity items

exceeds the volumeof high popularity items”

Focus of Next Media SRA

12

Next Media SRA: Vision

• By 2015, seamless creation and consumption of media content is an essential part of people's everyday lives.

• The Finnish media industry finds new ways to capitalise media experience.

• Highly efficient, agile processes accelerate the creation of competitive media concepts and technological enablers for domestic and international market.

13

Breakthrough target

• The breakthrough target is to develop engaging media services and enabling technologies that support co-creation and participation as well as monetising media experiences in real and virtual environment.

• Impact metrics: • The number of users of new media services

originating from the Next Media Programme• Turnover and the number of jobs generated from the

Next Media Programme innovations• Next Media Programme a unique initiative in Europe

14

Strategic targets in building the Next Media ecosystem

• Create an open innovation and co-creation environment • Users, media companies, players of advertising value chain, ICT-

providers, service providers, operators, device manufacturers, research organisations, governmental bodies

• Link together established media companies and new actors (e.g. Digi Cluster = DigiOske)

• Create a better understanding of consumer behaviour

• Enlarge the R&D&I cooperation with international research organisations and companies with the aim to be a part of the global top community in media technology research (e.g. EU7: NEM, PREN etc.)

• Build a bridge and foster cooperation between TIVIT and the Forest Cluster SHOK, especially in hybrid media

• Find new methods to generate internationally scalable media concepts and services

15

R&D&I process

User-driven open innovationin media sector(Large number of parties)

Open Living Lab (product and serviceconcept testing)

Commercialisationof concepts (limited number of companies needed in the value chain)

Yes/no

Products and services

Activ

e D

issem

inatio

n

16

Future media

genre ?

Community media

R&D&I themes in Next Media (horizontal and vertical)

Entertainment

and games

News and informatio

n

Education and

learning

Business models, concept development and organisational development

Human-media-interaction, dimensions of media experience, media use metrics

Profiling, context awareness and content adaptation

Content production tools and processes

Media content access

Social interaction, collective creativity and virtual environments

17

Research Area 1

• 6.1 Business models, concept development and organisational development (Sanoma Entertainment)

• Research Topics: 6.1.1 Income from target groups6.1.2 Income from advertisers 6.1.3 Media concept development6.1.4 Organisational development6.1.5 Media value chain and inter-organisational issues

18

Research Area 2

• 6.2 Human-media-interaction, dimensions of media experience, media use metrics (VTT)

• Research Topics: 6.2.1 Human-media-interaction6.2.2 Personal media experiences 6.2.3 Immersive media experience 6.2.4 Cross media experience6.2.5 Media use in social and cultural context 6.2.6 Media use metrics

19

Research Area 3

• 6.3 Social interaction, collective creativity and virtual environments (HIIT/KTH)

• Research Topics: 6.3.1 Social interaction6.3.2 Collective creativity6.3.3 Virtual environments

20

Research Area 4

• 6.4 Profiling, context awareness and content adaptation (VTT)

• Research Topics: 6.4.1 Profiling and personalisation6.4.2 Context awareness6.4.3 Content adaptation

6.4.4 Use of profiles and context in personal data management

21

Research Area 5

• 6.5 Content production tools and processes (Tieto)

• Research Topics:

6.5.1 Co-creative newsroom6.5.2 Content production tools and

processes

22

Research Area 6

• 6.6 Media content access (TKK)

• Research Topics:

6.6.1 Media content description and metadata creation

6.6.2 Media content retrieval methods, systems and interfaces

23

Wide range of potential participants

• Users• Device companies: PC, TV, mobile, signage, …• Service providers • Service platform providers• Network operators and distributors • Media companies• Wide range of technology providers: 2D, RFID, GPS, …

• Players in advertising value chain: advertiser, advertising networks, advertising agencies, media agencies, market research companies

24

Next Media core group and other interested parties (so far)

Core group• Finnmedia (VKL)• Sanoma

• Sanoma News• Sanoma

Entertainment• Alma Media• Talentum• Tieto• Elisa• Nokia• TKK• VTT• HIIT

Interested companies• Basso Media Ltd• Conga Group• Floobs• Esa-konserni• Hansaprint Oy• Jutel Oy• Lehtiyhtymä• Lots• Mediacity• Oppifi Oy• RedTail Media• Sanoma Magazines• Sanoma Lehtimedia• Suomenmaa Yhtiöt Oy• Tammi• YLE• Etc.

FS - CrossMedia • Anygraaf Oy• Finnish News Agency• Forssan Kirjapaino Oy• Itella• KCL• KSF Media Ab• Logica• Profium• Sanoma Data• Sanoma Magazines • Yhtyneet Kuvalehdet

42 companies, 50 % small

25

Other interested parties (so far)• Finnish Newspapers’ Association • Helsinki School of Economics• Laurea University of Applied Sciences• Metropolia University of Applied Sciences• Mikkeli University of Applied Sciences• Tampere University of Technology• University of Arts and Design Helsinki• University of Helsinki• University of Jyväskylä• University of Tampere• Åbo Akademi

26

Steps

• First draft of NM SRA (2010 - 2015) • Vision, Breakthrough target• Research areas (1-6)• Delivered to the Tivit Board on April, 27

• NM SRA proposal to the Tivit Board • Schedule: May, 25 2009

• Project plan and work packages for 2010 - 2011• Schedule: May, 18 – September, 2009

• Tekes application procedure: September - December 2009• Start in January 2010