The Digital Distribution Era

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The Digital Distribution Era

new patterns of film circulation and consumption

Giovanni Scatassa: some important trends of the new digital

platforms

(2)

ITALIAN POPULATION:

MEDIA ACTIVITIES - RANKING

Which of these activities do you do with a certain frequency?

Base. Individuals > 13 years = 51.666.421

2012 number % 2012 number %

1 1 internet 3.799.897 60,8 1 1 internet 4.184.953 57,5

3 2 music 2.680.675 42,9 2 2 music 3.384.301 46,5

2 3 tv 2.528.461 40,4 3 3 tv 3.199.647 43,9

4 4 game console 1.901.991 30,4 4 4 reading 2.671.118 36,7

6 5 reading 1.432.962 22,9 5 5 radio 2.078.164 28,5

5 6 radio 1.396.547 22,3 6 6 theatrical 1.391.084 19,1

7 7 theatrical 1.054.237 16,9 7 7 game console 698.951 9,6

2012 number % 2012 number % 1 1 internet 5.126.409 54,6 1 1 tv 4.589.777 47,7 Males 13-34 Females 13-34 Males 35-55 Females 35-55 1 1 internet 5.126.409 54,6 1 1 tv 4.589.777 47,7 2 2 tv 4.540.460 48,3 2 2 internet 4.028.362 41,8 3 3 radio 3.374.636 35,9 3 3 reading 3.987.625 41,4 5 4 music 2.900.961 30,9 5 4 radio 3.183.340 33,1 4 5 reading 2.838.445 30,2 4 5 music 3.179.046 33

7 6 game console 919.982 9,8 6 6 theatrical 1.172.479 12,2

6 7 theatrical 904.302 9,6 7 7 theatre 579.773 6 2012 number % 2012 number % 1 tv 4.530.905 49,8 1 1 tv 4.810.791 48,1 2 reading 3.491.926 38,4 2 2 reading 3.677.318 36,7 3 internet 2.537.915 27,9 3 3 radio 1.697.015 17 4 radio 2.056.911 33,6 4 4 music 1.485.503 14,8 5 music 1.480.710 16,3 5 5 internet 1.471.931 14,7 6 theatre 542.963 6 6 6 theatre 820.376 8,2

7 theatrical 396.331 4,4 7 Classical music concerts 441.814 4,4

7 8 theatrical 367.738 3,7

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42,7% 18,1% 40,1% 14,2% 37,3% 12,1% 22.371.324 9.478.288 21.032.702 7.447.443 19.274.285 6.230.521 Theatrical

VHS/DVD/Blu ray legally

ITALIAN POPULATION :

FRUITION OF THEATRICAL FILMS

THEATRICAL

37,3%

HOME VIDEO

12,1%

Individuals > 13 years 2013 51.666.421 Individuals > 13 years 2011 52.421.574 Individuals > 13 years 2012 52.421.573

Over the last year in which of the following ways have you watched movies made for theatrical? (multiple choice)

17,3% 7,4% 4,2% 6,0% 17,9% 6,2% 3,6% 5,8% 15,2% 5,9% 2,6% 5,6% 9.050.531 3.874.803 2.226.792 3.153.786 9.382.897 3.244.367 1.883.172 3.024.874 7.840.365 3.047.315 1.337.032 2.895.224

SKY, not at home also

Mediaset Premium, not at home also

Not original DVD/Blu Ray

Illegal web download

PAY TV

19,9 %

(2012: 22,6%)

(2011: 23,2%)

Internet illegal

purchase

/unauthorized sellers

7,5 %

(2012: 8,4%)

(2011: 9,0%)

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FREE TV 86,6,%

(2012: 86,7%)

NEW PLATFORMS

1,2%

ITALIAN POPULATION :

FRUITION OF THEATRICAL FILMS

Over the last year in which of the following ways have you watched movies made for theatrical? (multiple choice)

Individui > 13 anni 2013 51.666.421 Individui > 13 anni 2011 52.421.574 Individui > 13 anni 2012 52.421.573 1,7% 86,7% 1,2% 86,6% 891.118 45.430.191 609.613 44.722.086

Traditional Free TV channels (Rai 1, Canale 5, La 7, ... ) New web digital platforms, with connected TV, pc, Mac, tablet, iphone, smartphone

(2012: 86,7%) (2011: 86,1%**)

ONLY FREE TV

39,7%

NO VISION

9,9%

32,6% 9,5% 21,5% 28,8% 9,3% 23,2% 39,7% 9,9% 17.078.115 4.961.905 11.275.446 15.116.075 4.890.321 11.999.550 20.502.018 5.135.087

New specialized digital terrestrial TV channels (Rai 4, Rai Movie, …)

Only Free TV

No film vision

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POPULATION> 13YEARS:

FRUITION OF MOVIES –TREND

Trend 2008 – 2013 Individuals> 13 years (mln. individuals)

20,95 21,56 22,38 22,37 21,03 19,27 30,44 30,26 _29,79 30,05 31,39 32,40 20,56 45,93 46,61 46,24 45,13 45,43 _44,73 20.000.000 25.000.000 30.000.000 35.000.000 40.000.000 45.000.000

50.000.000 _{TREND OF FILM FRUITIONS BY CHANNEL}

-Theatrical viewers No theatrical viewers H.V. Pay tv Piracy 20,56 12,78 10,99 9,48 7,45 _6,23 11,78 13,41 12,03 12,17 _11,84 10,27 9,20 _8,36 5,80 4,73 _4,40 3,87 0,58 0,89 0,61 0 5.000.000 10.000.000 15.000.000 2008 2009 2010 2011 2012 2013 Free tv New platforms

Th viewers no Th viewers home video pay tv

piracy

free tv

new platforms

% 2008-2013

-8,00%

6,39%

-69,70%

-12,81%

-57,98%

-2,61%

5,87%

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Did you buy/rent movies over the last few months?

Base: Individuals> 13 years= 51.666.421

(

multiple choice

)

MOST POPULAR DIGITAL PLATFORMS FOR SELL/RENTAL

2,5% (2012:2,7%) 1,9% (2012:1,5%) 0,9% (2012:0,7%) 0,7% (2012:0,9%) 0,7% (2012:0,6%) 0,7% (2012:0,6%) 0,6% 1.300.131 965.014 451.880 369.043 352.783 385.477 Sky Primafila Amazon Mediaset Premium Net Tv I tunes Cubovision Dvd.it 0,6% (2012:0,8%) 0,6% (2012:0,5%) 0,5% (2012:0,8%) 0,4% (2012: 0,4%) 0,4% (2012:0,5%) 0,2% (2012:0,2%) 92,2% (2012:92,2%) 288.826 308.580 261.608 201.655 203.876 128.863 47.650.614 Ibs.it

Other online dvd and blu ray sellers Other online platforms Chili Sony devices Zune Microsoft, with X-Box No rental/purchase through these

(7)

How do you access the digital platforms to rent /buy movies?

Base. Individuals > 13 years = 51.666.421

(

multiple choice

)

ACCESS TO NEW DIGITAL PLATFORMS

5,5% (2012:7,6%) 1,7% (2012:1,3%) 1,2% (2012:0,8%) 1,2% (2012:1,2%) 1,0% (2012:1,1%) 2.838.240 901.207 598.211 595.969 498.935 pc connected tv tablet smartphone iphone 0,8% (2012:0,6%) 0,8% (2012:0,7%) 0,7% (2012:0,6%) 0,6% (2012:0,4%) 0,5% (2012:0,5%) 89,3% (2012:88%) 406.153 415.417 352.900 309.630 235.099 46.161.123 mac ipad video console Apple tv blu ray

(8)

How do you think the service provided by the new platforms to buy /rent movies could be improved ?

Base: new platforms user> 13 anni = 609.613

(

multiple choice)

PAY PER VIEW MOVIES ON NEW PLATFORMS:

WAYS OF IMPROVEMENT

55,5% 39,8% 31,9% 338.219 242.749 194.747 by lowering prices

by expanding the offer

by more convenient subscritions

31,6% 25,3% 12,1% 5,9% 192.615 154.030 73.711 35.718 by improving speed/quality of internet

connection

making everything more immediate and simple

making purchasing activity more intuitive and simpler

(9)

What are the reasons why you do not purchase movies on new platforms ?

Base: Not new platforms users> 13 anni = 51.056.808

(

multiple choice

)

PAY PER VIEW MOVIES ON NEW PLATFORMS :

CAUSES FOR LACK OF FRUITION

40,0% 16,8% 16,6% 10,0% 20.411.085 8.587.758 8.467.815 5.128.369 too expensive prices

lack of these new sistems no possession of tools necessary to

purchase films on new platforms

lack of trust on online transactions

8,4% 7,1% 6,6% 6,0% 3,6% 4.306.758 3.616.584 3.352.565 3.083.832 1.820.671 preference of viewing Dvds/Blu rays

too complex linking of the different appliances

hardship in renting and buying

no sufficient offered quality

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REVENUES FROM VOD AND EST - TREND

R E V E N U E S

gen 12

42 titles

feb-12 mar-12 apr-12 mag 12

91 titles

giu-12 lug-12 ago-12 set 12

186 titles

ott-12 nov-12 dic-12 gen 13

284 titles

feb-13 mar-13 apr-13 mag 13

360 titles

giu-13 lug-13 ago-13 set-13 oct 13

535 titles

R E V E N U E S

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REVENUES VARIATION (VOD AND EST) – 2013vs2012

+17%

-42%

R E V E N U E S

-42%

2012 2013 R E V E N U E S Ricavi noleggio +17% Ricavi vendita -42%

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REVENUES ALLOCATION BETWEEN EST AND VOD – 2013vs2012

60% 80% 100% 39% _44% 56% EST 0% 20% 40% from 01/01/2012 to 30/9/2012 from 01/01/2012 to 31/12/2012 from 01/01/2013 to 30/9/2013 61% _56% 44% VOD

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REVENUES ALLOCATION FOR “AGE” OF TITLES – YEAR 2013

60% 70% 80% 90% 100% 76% 57% 15% 2% current 45 titoli recent 386 titoli

• Current: titles released on the platform in 2013.

• Recent: titles with first theatrical release between 2000 and 2012.

• Library: titles with the first theatrical release before 2000.

0% 10% 20% 30% 40% 50%

Number of titles on the platform Revenues 9%

41%

386 titoli

library 79 titoli

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COMPARISON TOP 15 PERFORMERS 2012vs2013

TITLES RELEASED IN THE PLATFORM DURING 2012 TITLES RELEASED IN THE PLATFORM DURING 2013

TITLES TH DISTRIBUTOR TH RELEASE VOD/TOT TITLES TH DISTRIBUTOR TH RELEASE VOD/TOT

1 I Tre Moschettieri 01 Distribution 14/10/2011 _19% _{1 Educazione Siberiana} _{01 Distribution} 28/02/2013 _72% 2 Professione Assassino 01 Distribution 24/08/2011 48% 2 Benvenuto Presidente! 01 Distribution 21/03/2013 _73% 3 Hugo Cabret 01 Distribution 03/02/2012 38% 3 Il Cammino per Santiago 01 Distribution 06/07/2013 _58% 4 ACAB 01 Distribution 27/01/2012 29% 4 Il principe abusivo 01 Distribution 14/02/2013 _64% 5 The Iron Lady BIM 07/10/2011 27% 5 Tutto Tutto Niente Niente 01 Distribution 13/12/2012 _35% 6 Il giorno in più 01 Distribution 02/12/2011 47% 6 Viva L' Italia 01 Distribution 25/10/2012 _55% 7 Le Idi di Marzo 01 Distribution 16/12/2011 _41% _{7 La Regola Del Silenzio} _{01 Distribution} 28/09/2012 _59% 8 Bar Sport 01 Distribution 21/10/2011 32% 8 Viva la libertà 01 Distribution 14/02/2013 _38% 9 Scialla! 01 Distribution 18/11/2011 48% 9 Mai Stati Uniti 01 Distribution 03/01/2013 _40% 10 London Boulevard 01 Distribution 10/06/2011 60% 10 Red Lights 01 Distribution 08/11/2012 _60% 10 London Boulevard 01 Distribution 10/06/2011 60% 10 Red Lights 01 Distribution 08/11/2012 _60% 11 Shame BIM 30/03/2012 16% 11 Amiche da morire 01 Distribution 07/03/2013 _82% 12 The Artist BIM 13/01/2012 26% 12 Pazze di me 01 Distribution 24/01/2013 _39% 13 Biancaneve 01 Distribution 04/04/2012 _29% _{13 Promised Land} BIM 29/11/2012 _83% 14 Immortals 01 Distribution 11/11/2011 _23% _{14 Transsiberian} One Movie DTV _78% 15 The Conspirator 01 Distribution 22/06/2011 59% 15 Il matrimonio che vorrei BIM 18/10/2012 29%