Yvo Volman

European Content for the Global networks

INFO 2000 and beyond

Milano, 10-4-2000

European Content for the Global NetworksEuropean Content for the Global NetworksEuropean Content for the Global NetworksEuropean Content for the Global Networks

Content in the EU: economic and Content in the EU: economic and social implicationssocial implications

INFO2000 what impact ?INFO2000 what impact ?

The year 2000 and beyondThe year 2000 and beyond

AgendaAgenda

The EU view on the Information SocietyThe EU view on the Information SocietyThe EU view on the Information SocietyThe EU view on the Information Society

“The key to the future of our Continent is in the hands of hi-tech, knowledge-based industries, at the cutting edge of research.”

“Just think of the Internet. It can change the whole organisation of production, reducing stocks and creating virtual products.”

“Modern economies are increasingly knowledge-based, and this is an area where we have a competitive advantage at world level”

The Prodi Commission

Romano Prodi, European Parliament, 1999Romano Prodi, European Parliament, 1999

The emerging Information SocietyThe emerging Information SocietyThe emerging Information SocietyThe emerging Information Society

Which would you Which would you choose?choose?

Cost (US$) Time

Air mail 7.40 5 days

Courier 26.25 24 hours

Fax 28.83 31 minutes

E-mail 0.095 2 minutes

Source: Northern River Ventures, quoted in ITU “Challenges to the Network: Telecoms and the Internet”, 1997

From “either”… “or” to “and”… “and”

Bertelsmann Multimedia

Bertelsmann Multimedia

Technical infrastructureTechnical infrastructure

Content creationContent creationand ownershipand ownership

Marketing and service capabilitiesMarketing and service capabilities

Advantages forAdvantages fortechnology-driven companiestechnology-driven companies

Advantages forAdvantages forcontent-driven companiescontent-driven companies

1995 2005

Shift in Importance of Success Factors in the Multimedia MarketShift in Importance of Success Factors in the Multimedia MarketShift in Importance of Success Factors in the Multimedia MarketShift in Importance of Success Factors in the Multimedia Market

The Economic ChallengeThe Economic ChallengeThe Economic ChallengeThe Economic Challenge

Sheer size €376 billion - or 5% of the EU GDP 4 million employees

Growth rate Can be up to 20% per year Job creation engine: up to 1 million new jobs by

2005

Indirect effects driver and tradable good in e-commerce pushes ICT goods and services demand

What is the economic weight of content ?

The Social ImplicationsThe Social ImplicationsThe Social ImplicationsThe Social Implications

Skills New needs for content creation Improving workers employability

Culture An underexploited asset

Language diversity Equal access to the Information Society Export opportunities

Wider implications Healthcare, elderly, environment Enlargement

Content fulfils important social functions

The marketplaceThe marketplaceThe marketplaceThe marketplace

Demand side: Internet users

275 million (February 2000, NUA, IE) Mobile Telephony

120 million mobile subscribers in the EU

Supply side, changing structures: Convergence Mergers and take-overs

A turbulent marketplace

Europe versus USEurope versus USEurope versus USEurope versus US

Infrastructure: Europe’s multimedia structure lags behind, but Europe leads in mobile communicationTelecommunication costs: 5 times higher in EU than in US (source: Forrester

Research, quoted by NUA internet services) Content:Europe leads in professional information, but lags in entertainment

Users:Europe as a whole lags, but some European countries do very well

Europe versus USEurope versus USEurope versus USEurope versus US

Rich content baseRich content basepublic sector informationpublic sector information

World ranking playersWorld ranking playersLong publishing traditionLong publishing traditionChances in linguistic and cultural Chances in linguistic and cultural customisationcustomisation

but:but:Lagging in electronic publishingLagging in electronic publishing

Opportunities in Content

The Content IndustriesThe Content IndustriesThe Content IndustriesThe Content Industries

15%

52%

33%

Europe

Japan

USA

Are we losing this battle ?Are we losing this battle ?

Global market share : Electronic publishing

Global market share: print publishing

Catalysing the transformationCatalysing the transformationCatalysing the transformationCatalysing the transformation

Encouraging Encouraging ExperimentationExperimentation

Technology

Content

Research

TelematicsApplications

Development Validation Implementation

TENTelecom

INFO2000Scribe toScreen

Media IIaudiovisual

InformationTechnology

MLIS

AdvancedCommunication

Services

F P 51998-2002

Growing emphasis on content

Research networkingResearch networking

Future & emerging technologies

Essential technologies& infrastructure

Multimediacontent & tools

New methods of working & Electronic Commerce

Essential technologies& infrastructure

Systems & Services for the citizen

Independent and interdependent

The IST ProgrammeThe IST ProgrammeThe IST ProgrammeThe IST Programme

INFO2000: Operational ImpactINFO2000: Operational ImpactINFO2000: Operational ImpactINFO2000: Operational Impact

Multimedia Projects: More than 50% have indicated that they have

created jobs as a direct or indirect result of their respective projects

Job creation ranges from 0.5 to 15 persons per project, and up to 45 person years

Public Sector Information projects Projects under way: 50% of the projects claim they

will generate jobs

Job creation

How is INFO2000 perceived ?How is INFO2000 perceived ?How is INFO2000 perceived ?How is INFO2000 perceived ?

Usefulness of the project support from the INFO2000 programme

7

4

4

8

1

5

14

5

3

0

0

0

0 5 10 15 20 25

Extremely useful

Very useful

Useful

Somewhat useful

Not at all useful

Do not know

#projects

Definition Implementation

Multimedia Projects Survey

INFO2000: from scribe to screenINFO2000: from scribe to screenINFO2000: from scribe to screenINFO2000: from scribe to screen

Strategic Studies: Strategic Developments for the European Publishing

Industry towards the Year 2000 (1996) Content and Commerce Driven Strategies in Global

Networks (1998)

Green Paper on Public Sector Information: Improving access to information throughout Europe Facilitating exploitation of public sector content

resources

Strategic Impact:

Green Paper published Green Paper published 20 January 199920 January 1999

Events throughout EuropeEvents throughout Europe

Discussions with various institutionsDiscussions with various institutions

Numerous repliesNumerous replies

European Content for the Global NetworksEuropean Content for the Global NetworksEuropean Content for the Global NetworksEuropean Content for the Global Networks

CONDRINET Study

INFO2000 Mid-term evaluation “It is essential to instill a great sense of urgency and to

give priority to initiatives that increase the pace of market development and penetration”

Informal consultation round with industry “Having the content is a huge comparative advantage”

“Who will be able to capture the value of the customer relationships?”

“The window of opportunity is still open for new entrants”

A continued dialogue with the real world

Proposal follow-on INFO2000/MLISProposal follow-on INFO2000/MLISProposal follow-on INFO2000/MLISProposal follow-on INFO2000/MLIS

Supporting Europe wide investments: Access to capital for Internet start-ups

Expanding the information supply: Exploitation of Public Sector Information

Tailoring Information Content: Linguistic and Cultural customisation

Support Measures

Three Action lines

Applying / Tailoring available technology

Access to CapitalAccess to CapitalAccess to CapitalAccess to Capital

“Europe’s great weakness in the communications revolution has been a lack

of bright young entrepreneurs and of venture capitalists to back them. The best

way for Europe to exploit its lead is to start thinking of schools and universities as breeding-grounds not of more jobless youths but of new business start-ups”

The Economist, October 23, 1999The Economist, October 23, 1999

Access to capitalAccess to capitalAccess to capitalAccess to capital

Non-mature risk culture in Europe Assets based Severed links between industry and university Problems for start-ups

Great regional differences in the EU No cross-border fertilisation For each 1€ of high-tech investment in the EU

14€ are invested in the US

The problem

Digital content is central to the Information

Society development

Public sector information is a prime

content resource: huge opportunities

Barriers at European level prevent improved access and better exploitation

Exploitation of public sector informationExploitation of public sector informationExploitation of public sector informationExploitation of public sector information

Government online: a real challenge for Europe

What’s at stake

Public Sector Information: extensive potential for Public Sector Information: extensive potential for exploitationexploitation

Public Sector Information: extensive potential for Public Sector Information: extensive potential for exploitationexploitation

Revenue electronic information EEA5 517 MECU

Company profiles24 %

Finance34 %

Other7 %

Further business

8 %Gvt/political information

15 %

STM6 %

Legal information

4 %

Travel, tourism

1 %

Patent information

1 %

Linguistic and cultural customisationLinguistic and cultural customisationLinguistic and cultural customisationLinguistic and cultural customisation

Towards a Barrier-free Information Society overcome exclusion factors

Internet is increasingly Multilingual 50% of online content in languages other than

English bi- and multi-lingual web sites becoming the

norm

E-commmerce provides instant access toGlobal Markets

business must speak the language of the customer

BackgroundBackground

Barriers and LossesBarriers and LossesBarriers and LossesBarriers and Losses

Findings of the European Study "ELUCIDATE" (Leonardo programme)

Perception of the business community

Preparatory actions for the year 2000Preparatory actions for the year 2000Preparatory actions for the year 2000Preparatory actions for the year 2000

Ensure political continuity

Enable focus on actual problems

Prepare ground for mainstream programme

Keep interest alive in the community

Rationale

• 10 MEUR in 2000

• call for proposals April 2000