Challenges &                                                  Opportunities                                       A presen...
Opportunity Markets for Television         SIZE                              MOROCCO                                      ...
Challenges in the African Television    Market                  Significant rise in the cost of Premium contentAccess to   ...
Advances in the Africa Television    MarketEmerging          Growing market in local production                  Nollywood...
Sub-Saharan Pay TV Players                                                                                                ...
Subsidies into Africa            Government will need to formulate a           Strategy to make DTT STBs affordable       ...
Its not just the box pricing…TV Channels                  Pay TV Providers will position their                 entry point...
Lack of Audience Data = Lack of Ad Spend   Explosion of Free To    Air players over the                                  ...
Free-To-Air (FTA) vs. Free-To-View       (FTV)                  FTV                  FTA                                ...
Not only who is watching but what andwhen are they watching...                 10
EPG Advertising   Based on the EPG Framework infrastructure of EPG    Updates, the EPG enables operators to create new   ...
Sharing to Generate Economies ofScale   Platform               Platform                    Platform               Platform...
Sharing to Generate Economies of          Scale                 Platform            Platform                 Platform     ...
The Power of a brandPlatform Branding        EPG Branding                               Branded OTT ClientsDevice Branding...
In SummaryMarket has        New Players, New Standardsevolved           New PlatformsConsumer          Many players chasin...
Thank you… Zikomo… Tatenda ….Obrigado... Chichewa... Merci …Twalumba ...  Dankie        ... Gadda ge ...Meda wo ase ... Ma...
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Challenges & Opportunitities for Digital TV In Africa

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Challenges & Opportunitities for Digital TV In Africa

  1. 1. Challenges & Opportunities A presentation by Jason Lobel, Regional Director: Africa© NDS Ltd 2010. All rights reserved.
  2. 2. Opportunity Markets for Television SIZE MOROCCO TUNISIA POTENTIAL Over 100 Locally Produced 53 Countries ALGERIA LIBYA EGYPT Channels WESTERN 1 Billion People SAHARA MAURITANIA 100m TVs across 60m households CAPE VERDE MALI SENEGAL NIGER ERITREA CHAD SUDAN BURKINA DJIBOUTI FASO GUINEA GUINEA BENIN BISSAU GHANA NIGERIARegion 1a: South Africa SIERRA IVORY TOGO ETHIOPIA LEONE COAST CENTRAL AFRICAN REPUBLICRegion 1b: Southern Africa LIBERIA CAMEROON EVEN FTA IS LIMITED SOMALIA EQUATORIAL GUINEARegion 2: Portuguese Africa SÃO TOMÉ & PRÍNCIPE GABON Rep. of CONGO UGANDA KENYA Democratic RWANDA RepublicRegion 3: East Africa of CONGO BURUNDI TANZANIA Despite an explosion of FTA SEYCHELLESRegion 4: West AfricaRegion 5: French West Africa ANGOLA MALAWI players, majority of ad spend COMOROS BUT... LIMITED SUCCESS ZAMBIARegion 6: French Central Africa in South Africa. Only 1 player has syndicated across Africa MADAGASCAR ZIMBABWE MOZAMBIQUERegion 7: French North Africa NAMIBIA Only 1 Pay TV Platform has BOTSWANA MAURITIUSRegion 8: Arab North Africa managed to exceed 1m REUNION SWAZILANDRegion 9: Horn of Africa Subscribers and rest only LESOTHO SOUTH AFRICARegion have less than 400k each 10: Indian Ocean Islands
  3. 3. Challenges in the African Television Market Significant rise in the cost of Premium contentAccess to particularly sports and these content rightsContent controlled by established players Cost of production is high with TypicalCost of Local production costs ranging from $7,000-Production $15,000 per hourForeign Most market have restrictions on foreign ownershipOwnership Keep control strategic assetsLimited Limited FundingCapital High set-up costsFinancial Few consumer have bank accounts Availability of fundingSystem
  4. 4. Advances in the Africa Television MarketEmerging Growing market in local production Nollywood - world’s 2nd largest productionContent marketRegulatory New licenses for both private FTA and Pay-TV Regulation of content rightsFrameworkGrowth of Explosion licensed FTA broadcasters Growth spurred by liberalisation across theFree-To-Air regionMobile Concept of prepaid is African innovationMoney Africa is pioneering mobile money transferAffordable Growth low cost bouquets on incumbent platformsPricing New entrants in the Sub-$20 range
  5. 5. Sub-Saharan Pay TV Players Nigeria FTA Players Ghana FTA - State FTA: 124 Channels Players TUNISIA MOROCCO - Local Terrestrial : 8 Players - 6 FTA Players ALGERIA - Cable Operation: 4 Players LIBYA EGYPT WESTERN SAHARA East Africa FTACAPE VERDE MAURITANIA Players SENEGAL MALI NIGER CHAD ERITREA - Kenya: 7 Players SUDAN - Uganda: 24 Players - Tanzania: 5 Players BURKINA DJIBOUTI GUINEA FASO DJIBOUTI GUINEA GUINEA BENIN BISSAU BISSAU GHANA NIGERIA SenegalSIERRA FTA LEONE SIERRA LEONE IVORY COAST TOGO CENTRAL ETHIOPIA Players AFRICAN REPUBLIC CAMEROON LIBERIA LIBERIA SOMALIA SOMALIA - 5 FTA Players EQUATORIAL GUINEA Rep. of UGANDA SÃO TOMÉ & PRÍNCIPE CONGO KENYA GABON Democratic RWANDA Republic of CONGO BURUNDI TANZANIA SEYCHELLES COMOROS ANGOLA MALAWI ZAMBIA MADAGASCAR ZIMBABWE NAMIBIA MOZAMBIQUE BOTSWANA MAURITIUS REUNION SWAZILAND LESOTHO SOUTH AFRICA
  6. 6. Subsidies into Africa Government will need to formulate a Strategy to make DTT STBs affordable in comparison to DTH Pay-TV STBs Pre Top TV: 399 (box only) Launch in Nigeria: Nr9,000Launch: R499 Top TV 2010: R649Current: R299 Current South Africa: 599 Pre Star: Nr20,000 Current Nigeria: Nr10,000In 2009, the target price for DTT STB was around R700, what will the target price be for DVB-T2 box now?
  7. 7. Its not just the box pricing…TV Channels Pay TV Providers will position their entry point offerings to compete headRadio Channels to head with FTA DTT services with = aim of later up-selling “DTT” acquisitions onto higher packages
  8. 8. Lack of Audience Data = Lack of Ad Spend Explosion of Free To Air players over the Advertising Spend Excl South Africa (US$m) past 10 years in Africa 250 Outside of South Africa 200 there are few industry 150 wide Advertising 100 Measurement bodies 50 0 Most of the players are Kenya Zimbabwe Nigeria Cameroon Cote d’Ivoire Uganda Angola DRC Senegal Tanzania Ghana Botswana Namibia small terrestrial operations with limited Advertising Spend South Africa vs. Rest of sub-Sahara (US$m) coverage 3,424 BUT CA gives each STB an unique address User registers for the 968 service and married to STB address South Africa Rest of MUSA 8
  9. 9. Free-To-Air (FTA) vs. Free-To-View (FTV) FTV  FTA § @ @ * @ § * @ § * &* § & & & Encrypted @ @ * @ § * Open @ § * & § * & § & &  Signal distributed encrypted  Can only be accessed by a STB that Signal distributed completely open has been entitled to receive the signal Any compatible devise can receive the i.e. registered users only signal  Although there is CA, the service is BUT - no way to tell how many devices still provided free of charge/ are watching or even what they are subscription watching  Visibility on the exact number of households addressed and even what 9 they are watching
  10. 10. Not only who is watching but what andwhen are they watching... 10
  11. 11. EPG Advertising Based on the EPG Framework infrastructure of EPG Updates, the EPG enables operators to create new revenue streams for advertising using – EPG real estate – Program banner – As overlay on top of video Ads can be targeted to – Individuals or groups (based on card id, stb id) – Channels (services) or 11 Events
  12. 12. Sharing to Generate Economies ofScale Platform Platform Platform Platform A B C D Content Content Content Content Headcount Headcount Headcount HeadcountOps Team Call Centre Ops Team Call Centre Ops Team Call Centre Ops Team Call Centre Headend Headend Headend Headend MUX CAS SMS MUX CAS SMS MUX CAS SMS MUX CAS SMS Distribution Distribution Distribution Distribution CPE CPE CPE CPE STB EPG STB EPG STB EPG STB EPG 12
  13. 13. Sharing to Generate Economies of Scale Platform Platform Platform Platform A B C D Content Content Content Content + Each Platform compliments its own content with a bouquet of common content Headcount Headcount Headcount Headcount Ops Team Call Centre Ops Team Call Centre Single Operations Centre including full operations team Ops Team Call Centre Ops Team Call CentreMUX & Uplink/Teleport Common CAS and MUX Headend Headend Headend Headend Hosted Call Centre MUX CAS SMS Hosted SMSMUX CAS SMS MUX CAS SMS MUX CAS SMS Distribution Distribution Distribution Distribution Shared Shared Transmission Network DTTDistribution Common Space Segment on a shared transponder(s) CPE CPE Common STB Platform running CPE Multiple UIs/EPGsCPE Common Smart Card Platform but individually branded cards STB Each Platform still retains its own UI/EPG EPG STB EPG STB EPG STB EPG 13
  14. 14. The Power of a brandPlatform Branding EPG Branding Branded OTT ClientsDevice Branding 14
  15. 15. In SummaryMarket has New Players, New Standardsevolved New PlatformsConsumer Many players chasing the same consumersChoice Offering needs to be compellingMarket to be DTT cannot be based on a build it and they will come attitudedeveloped Content needs to be compellingEconomies of Shared Infrastructure, common STB and EPG toScale generate economies of scaleConformance & Ensure STB conform to common standardBrand Develop long roadmap to address entire base
  16. 16. Thank you… Zikomo… Tatenda ….Obrigado... Chichewa... Merci …Twalumba ... Dankie ... Gadda ge ...Meda wo ase ... Masuma ... Tsikomo...Asante... Emitekati ... Medagse ... Abora ...Ablo ... Jaaraama ... Imena ... Murakoze ...Kongoi ... Asanteni ... Tenkey...Matóndo ... Kusakililaku ... Webale ...Marahaba ... Baika ... Wenatase ... Aio ...Siyabonga ... Oshe ... Ukhani ...Enkosi ... Maharaba... I nkomu ...Ke a leboga ... Birepo ... Mèrèsi Confidential ©NDS Ltd 2009. All rights reserved. 16

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