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Feasibility Study of a Digital Platform for the delivery of UK ... - BFI

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<strong>UK</strong> FILM COUNCIL<br />

There is <strong>the</strong> potential to consider integration <strong>of</strong> <strong>the</strong> requirement <strong>for</strong> a digital master with <strong>the</strong> mastering element <strong>of</strong> <strong>UK</strong>FC’s digital cinema<br />

<strong>Digital</strong> Screen Network (DSN) programme in some cases. A central repository could serve both projects. Indeed, even at a less<br />

integrated level, shared technical standards <strong>for</strong> compression and metadata would be very beneficial.<br />

It is unlikely to prove cost-effective <strong>for</strong> <strong>the</strong> <strong>UK</strong>FC to consider <strong>the</strong> establishment and ongoing management <strong>of</strong> a repository <strong>for</strong> digital<br />

masters as an in-house project. The capital costs <strong>of</strong> such a project would not be insignificant. Assuming a target <strong>of</strong> 500 films, <strong>the</strong> capital<br />

costs <strong>of</strong> an uncompressed repository would likely be between £750k and £1 million. The capital costs <strong>of</strong> an MPEG set up would most<br />

likely be measured in <strong>the</strong> low hundreds <strong>of</strong> thousands. However, added to this, <strong>the</strong> operational requirements <strong>of</strong> <strong>the</strong> business stand well<br />

outside <strong>the</strong> core competencies <strong>of</strong> <strong>UK</strong>FC. Thus, such a venture would likely be best handled by a franchised third-party in a similar manner<br />

to <strong>the</strong> DSN.<br />

There are a number <strong>of</strong> organisations in <strong>the</strong> market – highlighted elsewhere in <strong>the</strong> report but including BT, Entriq, Narrowstep, Ioko and<br />

o<strong>the</strong>rs as well as content <strong>delivery</strong> companies - who lease and rent <strong>the</strong> equipment and skills required to maintain a central repository.<br />

Regardless <strong>of</strong> <strong>the</strong> chosen <strong>delivery</strong> partners <strong>for</strong> any consumer service, it is likely that such a contract would need to be established.<br />

It is difficult to be precise on costs as a number <strong>of</strong> different business models exist depending on whe<strong>the</strong>r <strong>the</strong> provider is involved in <strong>the</strong><br />

end <strong>delivery</strong> <strong>of</strong> films to <strong>the</strong> consumer. In general, however, <strong>the</strong> following aspects <strong>of</strong> <strong>the</strong> service are chargeable:-<br />

• Initial encoding (if <strong>the</strong> master is not digital) – charged per minute. This is <strong>of</strong>ten known as ingest.<br />

• Storage <strong>of</strong> data – charged per GByte on a monthly or annual basis<br />

• Tagging and metadata – charged on a time basis<br />

O<strong>the</strong>r services (such as transcoding, media <strong>delivery</strong>, DRM licence serving, etc) are <strong>of</strong>ten provided as part <strong>of</strong> <strong>the</strong> same contract. These<br />

are discussed in more detail below in <strong>the</strong> appropriate section.<br />

Transcoding<br />

Transcoding is <strong>the</strong> direct digital-to-digital conversion from one encoding scheme, such as Apple Quicktime, to a different encoding<br />

scheme, such as MPEG-4, without returning <strong>the</strong> signals to analogue <strong>for</strong>m. In o<strong>the</strong>r words, it is <strong>the</strong> process <strong>of</strong> turning a film <strong>for</strong>matted to<br />

be delivered on, <strong>for</strong> instance, a walled garden TV-based Video-on-Demand service, into an appropriate <strong>for</strong>mat <strong>for</strong> use on <strong>the</strong> open<br />

Internet, or on a particular mobile phone.<br />

<strong>Feasibility</strong> <strong>Study</strong> <strong>for</strong> a <strong>Digital</strong> <strong>Plat<strong>for</strong>m</strong> <strong>for</strong> <strong>the</strong> <strong>delivery</strong> <strong>of</strong> Independent <strong>UK</strong> films and Specialised films to <strong>the</strong> Home<br />

<strong>UK</strong> Film Council © 2006<br />

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