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Report of the Group B "Content and uses" appended to the recommendation of 8 March 2002

8 March 2002

Group B 'Uses, Applications and Services' finished its overview of the various subjects that its members had proposed to study during the second semester in 2001 when the group held its first meetings.

Six draft recommendations likely to promote the development of uses have emerged from this overview, for submission to the CSTI. A seventh draft was also drawn up jointly with group C ('Needs for Experts'). The draft recommendations address the following issues:

In the area of content enhancement and the diversification
of on-line payments methods

  • The broadcast of audio-visual works on the Internet,
  • The digitisation of the French heritage of knowledge,
  • Online micro-payment.

In the area of appropriating the services and controlling the tools

  • SME and SMI using Information and Communication Technologies and appropriating services ,
  • E-administration adapting to users' daily life,
  • " The educational system appropriating the Internet (jointly with group C).

In the area of innovative drive and the observation of uses

  • The dynamics and economics of 'use' models

Content enhancement speeds up the growth of offers drawing on widespread broadband infrastructures (see the work by Group A).
'Local support systems' should be set up if the services are to appropriated and the tools controlled. The set-up or reinforcement of said 'local support systems' requires experts in information and communication technologies (see the work by Group C).

 

I. CONTENT ENHANCEMENT AND DIVERSIFICATION OF ONLINE PAYMENTS

I.1. The Broadcast of Audiovisual Works on the Internet

Putting films online so they can be downloaded on the Internet runs into several difficulties. However, the broadcast of recent films on the Internet would contribute to the growth of broadband in France. The CSTI focused on three legal impediments, i.e.,

I.1.1- Royalty entitlement

Internet royalties are not usually specified in the original release contracts for royalties. This is a major legal impediment.

However, there seems to be a consensus to consider that 'Internet royalties' are deemed ceded with the other royalties, even if there is no specific transfer clause. All films are then allowed to be shown on the Internet without having to spell out each royalty release in riders to the initial contract.

The consensus of the profession will be formalised in a contract between the performing rights associations and producer syndicates, as an extension to the pay-per-view agreement signed in 1999.

I.1.2- Media Scheduling

Currently, films are released (in Europe and in the United States) according to a specific broadcast schedule where time-slots for initial marketing must be complied with, i.e.:
- movie theatres
- + 6 months, video-DVD
- + 9 months, pay-per-view
- +12 months, scrambled subscriber channel
- + 24 months for co-productions otherwise + 36 months, network channels

The following features:
- film showing per consumer request
- permanent film availability
- same functions as a VCR (pause, fast forward, rewind, and so on)
- pay-per-view
argue for the inclusion of VOD (video on demand) within the 6 to 12-month time-slot, after the film has been released in theatres, hence positioning the Internet before TV networks.

The regulatory authority (decree by the Ministry for Culture) is in charge of deciding which time-slot should be granted to VOD in the media scheduling.

I.1.3- Third party access to film catalogues

As in the United States film catalogue ownership is very concentrated in France.
When the US majors created two film-broadcasting sites, the US Department of Justice ruled non-exclusivity, i.e., the films broadcast by a catalogue owner must be accessible to third party broadcasters, under the same terms and conditions. In France, the Conseil de la Concurrence (the council for fair competition) will probably make a like decision and monitor its enforcement.

The CSTI thinks that this position, which promotes the broadcast fluidity of editorial contents on the Internet, should be adopted in France. Internet operators should be eligible to benefit from the public aid mechanisms for promoting the release of editorial contents (films, music, books, and so on).

The CSTI recommends facilitating the broadcast of audiovisual works on the Internet, first and foremost cinematographic works, to enhance the broadband service offering. This should be deployed by:
  • Encouraging the prime movers to spell out the appropriate inter-professional agreements in contracts; this could lead to the acknowledgement that royalty release implicitly includes the right to broadcast on the Internet.

  • Adjusting the existing regulatory or even legislative framework to assimilate film viewing on the Internet with 'pay-per-view', hence
    complying with a special broadcasting schedule.

  • Extending the current aid mechanisms to include Internet broadcasting.

I.2. Digitisation of the French Heritage of Knowledge

Major libraries and information holdings in the big countries are not only digitised but also increasingly networked through high broadband links. Yet, very few libraries in France have connected to the RENATER network or adopted a short-term methodical plan to digitise their priceless wealth.

The CSTI believes the cultural exception too often addresses just cinematographic works. Considering this, it would be expedient not to fall behind for written works, drawings, or photographs that the libraries or museums contain.

The CSTI recommends the adoption of incentive measures for the holders of this heritage to promote digitisation, online circulation, and broadband interconnection. The purpose would be to speed up the widespread digitisation of information holdings (publishers, universities, libraries, archives, and museums).
The CSTI would like to see these incentive measures attached to conditions guaranteeing that:

- Digitisation is based on open document and description formats

- Maximum enhancement of the digitised funds is ensured. This supposes a policy of indexing and pooling on the one hand, and a policy of making the funds available non-exclusively, under reasonable conditions, to publishers or suppliers of trading or non-trading private services.

I.3. Online Micro-payments

In many fields, the model of a 'free' Internet is now outdated. This is specifically the case for the commercial content broadcasters. Until now, they have adapted their economic models to the indirect funding of their offering, through advertising and derived services. They are now looking for additional financial sources.

Besides the standard online card payments, which will require Group B to address the issue of the confidentiality of these tools in 2002, the group first addressed the matter of micro-payments.

In France, the success of the kiosk mechanisms on the Minitel has prompted suppliers to look at this kind of solution. The context having changed with deregulation and the globalisation of offerings, yet in our country there is still no commonly recognised platform to date.
Stopgap measures (some of which can be short term) are being set-up. They focus on audiotel or the use of a mobile phone. Users are obliged to spend time getting information on a media (audiotel or cell phone) or downloading (on the Internet).

The situation in most countries is not much better. Deffered e-mail payments such as Paypal are practical for big purchases but tend to deter spur-of-the moment purchases while browsing.

Without waiting for the emergence of a widespread transboundary solution, the members of the CSTI believe it requisite to design a platform to promote the spread of anonymous, immediate, and easy shopping for information and for instantaneous downloads, in France.
A special working group with the French prime movers would make it possible to expedite the validation of a system that would be recognised by most of them.

The diversification of payments on the Internet is likely to buttress the content industry, spurring greater creativity, and risk-taking in the new service offer. The CSTI recommends the goal of setting up a shared micro-payment system (in addition to the existing payment options) that would be recognised and promoted by the prime movers of the digital economy.
It advocates the creation of a working group on this issue and its set-up during the first semester in 2002.

 

II. APPROPRIATING SERVICES AND CONTROLLING THE TOOLS

II.1. The SME and SMI Using ICT and Appropriating Services

The SME and SMI can hone their competitive edge by using New Technologies. After the first awareness campaigns, SME and SMI heads have become convinced of this. However, they have not yet decided to roll out the generic examples they were shown in their company or to make the required investment to do so.

Accordingly, the CSTI thinks that the earlier collective approach of the different sectors of the economy should be completed over a two-year period (2002-2003). This can be done through a targeted awareness campaign and customised 'pre-diagnoses', to provide those company heads who so desire with a more accurate view of the impact of their decision in terms of return on investment once the migration is done, but also in terms of the duration of said migration and of the repercussions on their business during the transition phase. Company heads would only have to pay a minimum fee for this study.

This approach should:
- Work closely with the local prime movers and deliberately seek out the active participation of the best relays for reaching the SME, i.e., associations, management centres, certified accountants, and so on.
- Grant seals of approvals to the service providers, upon proposal by the prime movers.
- Unite the operations nation-wide under the aegis of the MINEFI (French Ministry of Economy, Finance and Industry) and AFCCI to ensure the promotion, overall monitoring, experience pooling, and consistency of the evaluations.

However, the spread of current approaches is checked by limitations stemming from the lack of sufficient motivation of the unconnected SME.
An action concerning offerings and service providers for the SME would be likely to trigger renewed interest, and to spark a new demand. This action could include:
- On the one hand, the communication and internet 'support service' offer and the offer from SME advisory companies on matters of computing and the new economy: the main actions are the responsibility of the local prime mover. The first of these actions is addressed by the 'Infrastructures' group.
- On the other, the service offering from State administrations, the local authorities, and the set-up of e-exchange between the companies and public authorities: information, public teleservices, government procurement contracts, and so on.

If the ICT are to stimulate all of French economic life properly, the CSTI recommends:

- The implementation in 2002 of a national awareness and pre-diagnosis campaign for the SME and SMI, extending earlier operations. Campaign deployment would mainly rely on the active participation of local professional relays.

- Incentive measures for the SME to buy ICT and Internet-related advisory and engineering services, and to purchase or renew their equipment.

- That the State administrations prioritise the development of public teleservices for companies and the online availability of government procurement contracts. The State administrations might want to look at financial incentives to prompt the use of said services.


II.2. E-administration Adjusting to User's Daily Life

Spurred by the government, the French administrations and local authorities have started to set up websites. Apart from a few common 'portals' such as service-public.fr, this approach is still limited to creating 'islands' within the various entities. Most of the websites are exclusively dedicated to the applications of the ministerial department or public service that launched the website.

The 'second stage' of e-administration announced by the Minister for the Civil Service is the enhancement and diversification of teleservices for the public as well as partnerships and pooling.

The CSTI considers that :

- For improving the efficiency of rendered services at the lowest cost, the public services should be strongly urged to pool the contents they produce and circulate, especially between States departments, and to territorial authorities. Citizens should be able to choose the relevant local or national entry point of their choice to initiate or complete a procedure. This approach can be started on a small scale by setting up links, 'syndication' actions, or portals. However, the approach will eventually have an impact on the structure of the data per se. As of now, this eventuality should be prepared.

- With the growth of teleservices, the administrations should focus their efforts on services to the public (for instance, access to personal files or procedure follow-up) and not only on forms, which are merely a facility for the administration (which no longer has to fill them out).

- The material rollout of an electronic signature system, preferably an inter-administrative system, is a priority, if full teleservices are to be provided and if they are to have a growth-generating effect on this market.

- The time-saver for citizens through not having to repeat the same procedures endlessly and to supply the same information over and over again could be one of the major contributions of the ICT. In this respect, the CSTI will closely monitor the work of the 'Personal Data and Electronic Administration' mission chaired by Mr. Pierre Truche. The CSTI hopes that its findings will reconcile the need for the protection of user's personal data with the quality requisites of an administration whose starting point should be the simplification of user's daily life.

- The local scope of public services should be taken fully into account because it often reflects the reality of the administrative offices in the field. Accordingly, the CSTI suggests that, by the end of 2002, all the ministries put a description of the territorial organisation of their action on their websites where at least a minimum of informative facts would be available - who does what, where, and so on (addresses, useful information).

For the priority development of user and SME oriented teleservices and for the second phase of e-administration, the CSTI recommends that :

- Pooling and local entry point should be underscored, by setting objectives for this purpose and by identifying the events of daily life that now generate a series of separate transactions that it would be easier to regroup within the same chain and carry out as a single process

- Rules should be defined and a calendar set to ensure the short-term rollout of simple, and reasonably secure provisions for the electronic signature

 

III. INNOVATIVE DRIVE AND THE OBSERVATION OF USES

The rationale of supply has clearly dominated the market of the products and services exploiting the opportunities offered by the technological advances of these past years. Even when marketing studies were serious, the definition of an offer with a high-tech content usually pre-existed the study itself. This approach has proved its limits, WAP being the most striking example. However, the problem goes much deeper: regarding new services, an analysis of current needs or behaviours is not necessarily a very good projection of future demand.

The interaction between the rationale of supply and the rationale of demand has become more complex than the prime movers expected. Predictably, the complexity will become greater as the technologies start circulating throughout increasingly personal, social, and professional areas of our daily life.

According to the CSTI members,

- The knowledge and understanding of uses, behaviours, criteria, and the dynamics driving potential users to appropriate new services are still deficient. Similarly, the innovation source (through the creation, deviation, and adoption of technologies, uses or new services), i.e., the community of 'active' users (free, 'hackers', young people, and so on) is not well known. Yet this innovative source is the wellspring of major phenomena, such as (today's) peer-to-peer file exchanges, SMS, or even the Web.

- A multidisciplinary approach, bringing together various fields such as sociology, behavioural psychology, ergonomics, and so on, should be given priority to underscore how functions considered as 'useless' or 'unknown' until now can rapidly become key functions or diverted functions for unanticipated or solvable applications (like SMS).

For increasing the likelihood of success of the French prime movers in applications and services, the CSTI recommends the creation, approval, and networking of laboratories of uses, appropriate for:

- Building and circulating a corpus of knowledge on the uses of the ICT and the dynamics driving the appropriation of innovations in this field

- Enhancing the knowledge of the community dynamics generating new uses

- Helping companies, with a focus on the SME, to evaluate the use value and appropriation modes of the technologies and projected services

 
 
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