Structural changes in video entertainment are coinciding with the worst economic conditions for a generation.  In turbulent times, how will money be earned and which part of the value chain will grab the biggest share?

From rights owners and production companies to distributors and broadcasters, participants in video's value chain face tough times as corporates and consumers tighten their belts.  Barclays Capital expects an 8% decline in the advertising spend on US network TV in 2009.

In response, STAR TV's Jack Gao detects advertisers focusing on media that have high measurability: "They are emphasising much more the cost-effectiveness of the means to achieve coverage per thousand people, and seeking packaged deal 'solutions' that include not only conventional media platforms but also new media ones."

The possibilities offered by new platforms go well beyond the familiar advertising and subscription models, with many forecasters expecting significant growth in product placement, lead generation and other innovative tools.

Whatever the changes in overall revenues, the way value is split between the players varies widely from country to country.  In the UK, for example, the Communications Act 2003 gave producers valuable rights to the content they create.  In contrast, India's 'cost plus' approach has seen production companies likened to plumbers.

Broadcasters have traditionally been at the pinnacle of the value chain.  Many believe they will now have to fight the hardest to retain their share of the cake, dragged down by high fixed costs and steadily declining audiences.  However, for each weakness identified by the broadcasters' critics, others can identify a strength: their proven abilities in promotion and marketing, and the ability of their powerful brands to offer consumers a 'signpost to quality'.

As Chairman of Chorion, Lord Alli leads a company whose raison d'être is the accumulation of valuable content.  Although he clearly believes in the ascendancy of content and rights ownership, he also recognises that ultimately all players in the value chain need to work harmoniously together: "You need content, you need access to the platforms, all platforms, and you need that creative genius to make the content work across each of those platforms."