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Defining the IPTV service and content strategy

Defining the IPTV service and content strategy






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    Defining the IPTV service and content strategy Defining the IPTV service and content strategy Presentation Transcript

    • “DEFINING THE IPTV SERVICE AND CONTENT ROADMAP” IP&TV Forum Eastern Europe & Eurasia 12-13 October 2010, Mövenpick Hotel, Istanbul, Turkey RETHINKING│ COMMUNICATIONS
    • Introducing your Speaker Over 10 years experience in strategy advice and operations in the TMT sector. As Partner at SVP Advisors, I am now leading advisory projects for top-class telecom and media clients in several countries. Before this, as Head of the Residential unit at On Telecoms, I launched the first triple play offer in the Greek market with a package bundling unlimited free telephony with broadband Internet and IPTV. Dimitri Kallinis In particular, I defined and set-up the service and content offer of Partner “On TV”, the Company’s IPTV proposition, signed up by nearly SVP Advisors 100,000 households in less than 2 years from launch. Earlier on I worked for Analysys, an advisory firm specializing in telecoms and media, and I participated in 2 Internet start-ups. I graduated from the Luigi Bocconi University in Milan in Business Administration. I am fluent in Italian, Greek, English and Spanish. 2
    • 1. Content Production & Aggregation Packaging and Content acquisition Production Aggregation Football Leagues / UEFA & Sports TV channels (linear FIFA Competitions / non linear) Sport events Other Sports PC / mobile live streaming Music Live Concerts PPV TV Shows Formats TV Shows / Programs Thematic TV channels Movies / Series / VoD / SVoD Magazines EXAMPLE Tier1 or Tier2 football Set up production Launch new dedicated rights facilities TV channel(s) Which is the best way for IPTV Operators to enter this space? 4
    • Case Study: Orange Sport & Orange Cinéma Séries • 1st major European incumbent to embrace a pay-TV channel strategy, launched in 2007 • Pay-TV channels available on exclusive basis on Orange IPTV and Satellite platforms Launch: August 2008 Launch: November 2008 Subscribers (Jul10): c. 400k (15% penetration) Subscribers (Jul10): c. 350k (13% penetration) Rights: Ligue 1* (203€ mln/year until 2012); Content: movies and series from Hollywood Int’l football (Liga, PL, SerieA), other sports Studios, magazine shows (c. 65€ mln/year) Why Orange decided for a strategic turnaround on content in 2010? * Selection of live matches – all remaining matches on Canal+ (pay TV) 5
    • Case Study: LIGA total! • IPTV-exclusive national football TV service launched by Deutsche Telekom in Germany • Live matches available on IPTV (“T-Home Entertain” offer) and mobile Launch: August 2009 Subscribers (Jul10): N.A. Rights: All Bundesliga (612 live matches / year) • Services: Live streaming, standard and personalised conference compilation (interactive with image-in-image function), match statistics, match summaries (in TV archive) • All matches available in HD (for a premium and only for customers with VDSL) Which are the key strengths of DT’s football proposition? 6
    • 2. Distribution Platforms [1] Comparison of digital multi-channel TV platforms Platform Pros (+) Cons (-) • Virtually 100% HH coverage • Capacity constraints Satellite • Production & packaging expertise • Lack of interactive services (e.g. games) • Production & packaging expertise • Limited availability outside urban areas Cable • Image quality • Lack of interactive services (e.g. games) • Big number of free channels • Lack of extensive premium content DTT • Easy and cheap access/activation • Lack of interactive services (e.g. games) • High-degree interactivity services • Limited coverage (>5Mbps connection) IPTV • Breadth and size of content available • Interface/navigation/content search • Easy to find/access content • Not suitable to a lay-back experience Web TV • Specialized/user generated content • Premium content not widely available Is interactivity powerful enough to give IPTV an edge over rival platforms? 7
    • 2. Distribution Platforms [2] Map of leading digital multi-channel TV platforms in European Countries Satellite Cable DTT IPTV Source: SVP Advisors’ elaboration based on EC & company data 8
    • Case Study: Freeview Digital multi-channel TV platforms market share, UK (Q1 2010) • “Open” DTT platform in UK (free) • Launch: Q4 2002 • 5 equal shareholders (BBC, ITV, Channel 4, Sky and Arqiva) • Market leader (c. 10mm HH) • Coverage: 77% of population • 50 free-to-view TV channels (4 HD), DVR, No premium channels, VoD • Freeview box required (from £15) • Potential growth ahead thanks to digital switchover (end of 2012) Source: SVP Advisors’ elaboration based on Ofcom data Is DTT the most dangerous threat to IPTV’s growth? 9
    • 3. User Devices STBs, GAME INTERNET TVs PCs CONSOLES, DVD PLAYERS Video downloading & Online services through BB Full HD, 3D, Wi-Fi connectivity streaming. Long-form videos connection: TV, multi-player Internet: catch-up TV, SVoD, and live events (e.g. games) games, HD movies, sports, user-generated content, video user-generated short clips radio, applets & widgets library, applets & widgets How does the devices’ move into online video services affect IPTV? 10
    • Case Study: BBC iPlayer Launch: December 2007 Content: Last 7 days of BBC programs Users: c. 1.5 mln average unique users/day, >100 mln streams/mth • A very successful cross-platform catch-up Internet TV and Radio service in the UK • New 2010 release featuring enhanced personalization and social connectivity (e.g. facebook) • Available on: Web, CATV (Virgin Media), IPTV (BT Vision), DTH (Freesat), TV sets (Samsung), Game consoles (Wii), Blue-ray Disc Players & Smartphones (iPhone) . DTT in 2011 Will multi-device broadcasters-run services mark the future of catch-up TV? 11
    • Case Study: LOVEFiLM • A UK video-on-demand Internet service with >4,200 titles (inc. TV series) • Associated with a DVD rental service with >67,000 titles • All-you-can-eat subscription plan for 9.99£/mth • 11th most popular online retailer in the UK (May 2010) • Available on Blue-ray Disc Players and Ready TV sets (Sony & Samsung) • Requires BB connection of at least 1Mbps • Partnership with Amazon (Sep10) Yet another threat to one of IPTV’s pillars (i.e. VoD)? 12
    • Case Study: Google TV • Google’s foray into the “living room” • Launch: Q4 2010 (US), 2011 (Int’l) • Google TV provides direct and full access to the Internet via a browser- based interface through Internet TVs • The browser sits “on top” of the existing TV system - navigation is done via a dedicated remote control and keyboard • Allows users to search, find and watch programs and other content from broadcast TV and the Web Will IPTV content discovery solutions outperform Google TV? 13
    • 4. Consumer Behaviour Willingness of viewers to watch TV via PC • Consumer needs and viewing behaviour and mobile handsets (% of total, 2009) are rapidly changing 70% 66% • Consumers want personalised, instantly 61% 60% 57% available “fresh” content, through 55% multiple devices and in HD/3D 50% 44% • They increasingly turn online to meet 40% 31% their needs (but are unwilling to pay) 30% 25% 26% • As happened with music in the past, 20% the illegal TV market is flourishing 10% • This is especially the case for people in 0% the 15-45 age groups, a big chunk of France Germany Italy UK PC Mobile the “active” population and the main target of advertising companies Source: Jupiter Research, Arthur D. Little Is it still worthy to focus (and invest) on traditional linear TV? 14
    • Case Study: Pirate Bay • A Swedish website that indexes BitTorrent files, containing metadata necessary to download files from other users • Includes music, movies (also HD), games and applications • Primarily funded through advertising • 4mln registered users as of Dec09 (registration not required, free) • 25mln unique users/day (top) • Several lawsuits against it, but still up and running Is there a way to attract “BitTorrent” users to IPTV? 15
    • Case Study: 3D TV TV Channels Platforms Devices + + Apr10 Canal+ announces plans to launch a 3D TV channel by Christmas 2010 NEWS Jun10 Etisalat and du (UAE) launch 3D TV services Oct10 SKY UK launches Europe’s 1st 3D channel with movies, sports and shows After HD, is 3D the new frontier for TV? 16
    • Takeaways • The TV Eco-System is rapidly changing – borders between content production, aggregation, platforms, Internet and user devices are blurring • IPTV needs to adapt and find its own place – focussing on its own strengths (e.g. interactivity) and service differentiation • There is no “perfect recipe” to look for – each market’s characteristics will determine the right service and content strategy to follow • Understanding what consumers want and what are their available options in the marketplace should ultimately drive the IPTV service and content roadmap • A multi-device approach may turn to be a powerful solution to address the consumers’ increasing shift to non-linear, interactive and personalised content 17
    • Company Profile SVP Advisors is an international management consulting firm for the communications industries specializing in business strategy and regulation Established by seasoned professionals in 2006, we have earned over time a solid reputation within thanks to our quantitative and practical approach in consulting assignments Our work combines various disciplines such as economics, econometrics, finance, accounting, marketing, engineering, and computer science 19
    • International Experience SVP Advisors assignments (13 Countries) Previous Team experience (24 Countries) 20
    • Areas of Expertise •Regulatory •Commercial strategy strategy •Market & •Pricing and tariffs competition design analysis •Transaction •Policy setting support Business Regulation strategy New ventures Modelling and Products •Costing systems •Product definition •Pricing models •Business planning •Margin squeeze •Business test Development 21
    • Case Study: Business Plan for an Interactive Content Provider Content Provider (Western Europe), 2009 We assisted an international betting company developing the Business Plan for a “real” live football betting Overview of the key economics of the application Business Plan – Base Scenario We first assessed and provided inputs on the business model including: – service provision and access means – potential clients/partners – price and revenue sharing models We then analysed the markets showing the greater potential for the application based on broadband penetration, the average spend in sports betting and the features of multiservice platforms Finally, we developed a Business Plan which produced a full range of economics Note: figures have been altered for confidentiality reasons based on different scenarios of addressable market, service penetration, events covered, average usage and spent, as well as net revenue (fees) for the betting company 22
    • Our IPTV proposition We are ideally placed … … to add value to IPTV Our Consultants have developed a We can leverage our outstanding track- unique set of skills and gained record to help Operators make their unrivalled international experience IPTV service successful. on IPTV thanks to work carried out in: We are equip to undertake an • Technical and commercial IPTV assortment of assignments during the operations in 5 large European various phases of the IPTV service Countries lifecycle - indicatively: • Advisory projects for Operators and projects on behalf of financial • End-to-end project support institutions • Business planning • Int’l benchmarking Furthermore, our Consultants form part • Content acquisition & aggregation of an extensive business network of: • Commercial offer definition & review • Service bundle maximization • Content providers and aggregators • Profit analysis • Vendors and IPTV solution providers • Revenue stimulation • System integrators • Regulatory support (for incumbents) 23
    • Any questions? Please contact: Dimitri Kallinis Partner dimitri.kallinis@svpadvisors.com Company Address (main offices): THANK YOU C/ Almagro 15, 5th floor 28010, Madrid Spain Telephone number: +34 91 310 2895 Fax number: +34 91 141 28 11