4. 3
About Analysys Mason
Analysys Mason is a global specialist in
telecoms, technology and media
§ Analysys Mason is a global specialist
in telecoms, technology and media
(TMT), with offices on four continents
Analysys Masons’ s global presence and experience
§ We have had a major influence on
the industry for more
than 25 years:
- led the liberalisation of telecoms
across Europe and
Asia and mediated in policy issues
for operators and regulators
Assignments completed
Analysys Mason offices
- supported several hundred transactions and licence acquisition processes for
operators and financial institutions
- provided strategic and operational support to major operators in the roll-out
and expansion of businesses across the sector, enhancing enterprise value
§ With over 260 staff in 13 offices, we are respected worldwide for our
exceptional quality of work, independence and flexibility in responding to client
needs
5. 4
About Analysys Mason
We are uniquely positioned to provide
consulting and research to the TMT sectors
Consulting
§
§
Transaction
support
Our focus is exclusively on telecoms, media and
technology (TMT).
We support multi-billion dollar investments, advise
clients on regulatory matters, provide spectrum
valuation and auction support, and advise on
operational performance, business planning and
strategy.
§
We have developed rigorous methodologies that
deliver tangible results for clients around the world.
Strategy
and planning
Operational
consulting
Regulation
and policy
Procurement
Research
Consumer
services
Enterprise
services
Telecoms
software
Regional
markets
Network
technologies
§
We analyse, track and forecast the different
services accessed by consumers and enterprises,
as well as the software, infrastructure and
technology delivering those services.
§
Research clients benefit from regular and timely
intelligence in addition to direct access to our
team of expert analysts.
§
Our dedicated Custom Research team undertakes
specialised and bespoke projects for clients.
6. 5
About Analysys Mason
Our selected media project experience
Case study
Key capabilities
TV advertising in France
Understanding of the nature of the TV advertising ecosystem
European media group
growth plans
Competitive analysis, benchmarking and business planning for production,
channel aggregation and Internet expansion plans
Telecoms operator
football rights
Role of premium content, and ways of accessing this content for broadcast
Content rights business
and regulatory models
Evolution of media delivery technologies, for possible regulatory intervention
in the content market
South American
broadcaster DTT
strategy
Planning of genre and business model for a broadcaster moving to a digital
platform
Irish government DTT
planning
Leadership and planning of digital terrestrial television, involving all
stakeholders
Broadcaster online
content distribution
strategy
Costs and strategy for a broadcaster evaluating alternative platforms for
delivering content
Asian studio facilities
provider business plan
Comprehensive business planning (vision, services, clients, pricing,
marketing) for a state-of -the-art movie studio facility
9. 8
A framework for DSO
Stakeholder
Activities
Government
1.
2.
3.
4.
5.
Regulator
1. Decide on technology and standards
2. Implement licensing framework
3. Manage radio spectrum and coordination matters
Industry
1.
2.
3.
4.
5.
Develop DSO policy and legal framework
Establish and implement staged plan for ASO
Develop funding policy and establish fund
Establish principles for Help Scheme
Establish DSO/ASO Implementation Task Force
Develop consumer proposition
Establish DTT branding and conformance regime
Develop communications plan
Plan and deploy DTT network
Establish receiver specifications and costs
Source: Plum Consulting, Farnborough for GSMA
10. 9
Cost of DSO in other countries
Country
Purpose
Amount
Source
UK
Help scheme
€693m
BBC
Marketing activities
€230m
Digital UK
DSO total
€4.37b
Private + Public
Marketing activities
€255m
Government + PSBs
Help scheme
€142m
Government
Help scheme
€50 per qualifying HH
Government
ASO pilots
€55m
Government
DTT rollout
€33m
Government
DTT subsidy
€220m
Government
DSO projects
€75m
Government
DSO total
€12b
Public, private, viewers
Help scheme
No special budget
Government
Marketing activities
€5.5m
Government
France
Italy
Spain
Sweden
Source: Digitag
11. 10
Netherlands DSO
§ DTT platform launched in 2003 offering limited free‐to‐air
services from the PSB and extensive pay services from Digitenne
§ Focus on portable and mobile reception: DVB‐H services
launched in June 2008
§ ASO completed on a single day on 10 December 2006
§ Since then, DTT penetration has increased from 3‐5% to 12% of
the population – and strong growth continuing
Source: Digitag
12. 11
Sweden DSO
§ Launch of DTT services in 1999 offering a largely pay DTT
platform operated by Boxer
§ Attractive programme offer combined with competitive pricing has
allowed Boxer to effectively compete with other television
operators
§ Five phases to switch‐off starting in September 2005 and
completed in October 2007
§ 40% of viewers waiting until last month to purchase DTT
receivers
Source: Digitag
13. 12
France DSO
§ Launch of DTT services in March 2005 offering viewers 18 free‐
to-air and 9 pay‐DTT services
§ Combination of MPEG‐2 and MPEG‐4 AVC compression formats
§ Five HD/DTT services launched
§ France Télé Numérique set up to manage analogue switch‐off
§ Two DTT pilot projects completed in 2009
§ Analogue switch‐off began in February 2010 for completion by 30
November 2011
17. 16
What are the key risks for DSO, particularly
with a short ASO deadline?
§ Expensive receivers and low engagement from retailers to make
receivers widely available in the market
§ Cost of meeting roll-out and coverage obligations (e.g. when
country/broadcast specific features are required)
§ Poor communications campaigns, leading to confusion about
DTT benefits and how to obtain them – this can be particularly
damaging in remote communities with poor literacy skills
§ Insufficient co-ordination with adjacent countries increasing the
risk of cross border interference (shorter transition periods may
make this more complex)
§ Inadequate DTT network planning, which may cause delays to
network roll-out and switch-on schedules.
19. 18
Summary of relative impact and degree of complementarity of
linear and non-linear TV … at least so far
Element
Key trends over last 10 years
Scheduling / type
of service
▪ Complementarity of non-linear and linear TV for popular TV series and
Device / service
Transmission
programmes – potentially having a significant impact
▪ Importance of new players offering Internet-based non-linear TV
▪ Simultaneous growth of HDTV and non-linear TV
▪ Simultaneous growth of traditional and non-traditional non-linear TV
▪ Simultaneous growth of traditional transmission TV services (DTT, cable,
satellite, IPTV) and broadband/Internet-based networks
Consumption
▪ High growth in non-linear TV viewership needs to be put in line with the
current evolution of the overall TV market
Business model
▪ Although growing fast, non-linear TV revenues still make up a very small
part of the whole TV market
▪ We expect non-linear TV to continue to grow – but it could grow:
– along with linear TV, i.e. as a complement
– at the expense of linear TV, i.e. as a substitute
20. 19
Although revenue from online TV is increasing exponentially,
it still represents less than 2% of total TV revenues
Non-linear revenues as % of total TV revenues
in larger EU countries, 2008–11
Total non-linear revenues by source in larger
EU countries, 2008–11 (EUR million)
200
1.6%
180
1.4%
160
1.2%
140
1.0%
120
100
0.8%
80
0.6%
60
0.4%
40
0.2%
20
0.0%
0
Germany
Spain
2007
Pay-TV
France
2008
2009
UK
2010
FTA
Free models seems to be gaining momentum in most countries, but pay-TV
models are also growing in relative terms in Germany
Source: EAO, Analysys Mason
Italy
21. 20
Future TV consumption – will connected TV be a complement
for linear TV, or a substitute? Figures illustrative – for discussion only
250
Connected TV as a substitute – erosion
or decline in traditional TV
Consumption of online video vs TV (min)
Consumption of online video vs TV (min)
Connected TV as a complement –
traditional TV follows historical trend
200
150
100
50
0
TV
Online Video
250
200
150
100
50
0
TV
Online Video
22. 21
Concluding remarks
§ Complexity and uncertainty in short, medium and long term
- tactical approach for short term
- strategic planning for medium to long term
§ Established and new players have different perspectives
- a land of opportunity for new players
- limited ‘losses’ for established players, but a threat in medium
and long term – prepare tactically!
§ You are not observer but KEY PLAYERs
§ Your actions can change current forecasts!
23. Africa Cast 2013
Evolving iROKOtv in a multi-platform ecosystem
Jason Njoku CEO iROKOtv
Africa Cast 2013 / Evolving iROKOtv
24. NOLLYWOOD IS THE WORLD’S SECOND LARGEST
MOVIE INDUSTRY IN TERMS OF OUTPUT
2
25. INTRODUCTION TO NOLLYWOOD
WORLD’S SECOND LARGEST MOVIE INDUSTRY
BOLLYWOOD
3,000 MOVIES/YEAR
NOLLYWOOD REVENUE (EXCLUDING PIRACY)
INCREASED FROM $50 MILLION IN 2002 TO ALMOST
$300 MILLION IN 2010 (+18% P.A.).
By comparison Hollywood revenues equaled $50bn and
Bollywood revenues equaled $2.5bn in 2010.
VALUE
$2.5B / YEAR
NOLLYWOOD
2,000 MOVIES/YEAR
VALUE
$0.3B / YEAR
Africa Cast 2013 / Evolving iROKOtv
Nollywood films released per year rose from 500 to 2,000
between 2002 and 2010.
Remarkably Nollywood exists as a film industry without any
government support.
NOLLYWOOD HAS A MASSIVE OPPORTUNITY AHEAD
26. IN 2009, THIS WAS HOW YOU WOULD CHOOSE A NEW
NOLLYWOOD FILM TO WATCH. CONFUSING OR WHAT?
5
30. INTRODUCTION TO NOLLYWOOD
NOLLYWOOD AND THE DIASPORA
We heard that Nollywood was popular in the Diaspora. When we
launched NollywoodLove, this transitioned from anecdote to fact!
Africa Cast 2013 / Evolving iROKOtv
31. INTRODUCTION TO NOLLYWOOD
NOLLYWOOD AND THE DIASPORA
iROKOtv set the content free and made it available in the US, UK and
around the world, allowing the Diaspora to access home produced
content that resonated with them.
Africa Cast 2013 / Evolving iROKOtv
32.
33. THE SUCCESS OF iROKOtv
THE BUSINESS MODEL EVOLVES
WE HAVE SUCCESSFULLY REORGANISED AND STRUCTURED THE
NOLLYWOOD MOVIE DISTRIBUTION PROCESS.
We buy online movie licences
from movie producers.
Africa Cast 2013 / Evolving iROKOtv
We stream the movies on irokotv.com
and make money from ad sales and our
subscription service iROKOtv PLUS
Additionally we sell licences to
airlines, tv channels and partners.
35. CONSIDERING THE AFRICA ‘CHALLENGE’ AND DEVELOPING THE RIGHT
PLATFORMS
m.irokotv.com - 47% of traffic
comes from Nigeria
www.irokotv.com 5.89% of
traffic comes from Nigeria
5.89% of users in Nigeria
Africa Cast 2013 / Evolving iROKOtv
Africa Cast 2013 / Evolving iROKOtv
12
36. MOBILE IN AFRICA
THE CONVENIENCE OF MOBILE CONNECTIVITY...
...HAS REVOLUTIONIZED HOW PEOPLE ARE ENGAGING WITH
DIGITAL CONTENT
MOBILE DATA USERS IN NIGERIA
% of population
50.8%
With the growth of smartphones, mobile video consumption is on the rise for
38.3%
entertainment content.
32.8%
27.7%
According to Nielsen’s global report of multi-screen media usage, mobile
24.1%
14.7%
video is particularly prominent in SSA, where many consumers leapfrog
home Internet altogether in favour of the all-in-one smartphone.
72% of SSA online consumers report
watching video on mobile devices at
least once a month, and almost 40%
say they do so at least once a day.
Africa Cast 2013 / Evolving iROKOtv
2007
2008
2009
2010
2011
2015e
43% of SSA’s mobile internet users
are aged between 16-24 and spend
more time consuming mobile video
than any other age group.
37. THE CHALLENGES
WE ARE WAITING FOR AFRICA TO COME ONLINE
SSA IS THE WORLD’S FASTEST
GROWING INTERNET POPULATION
181.0M
169.7M
155.5M
With a growth from 16 million to 118.8
million Internet user between 2005 and 2011
(+40% p.a.).
137.9M
64.0M
118.8M
TOTAL SSA
Africa Cast 2013 / Evolving iROKOtv
56.6M
49.3M
97.9M
42.1M
By 2015, there will be more than 180 million
internet users in SSA (+13% p.a.). Nigerian
internet users have increased from 4.8
million to 76.7 million between 2005 and
2011 (+59% p.a.).
By 2015, there will be an estimated 110
million Nigerian internet users. Overall,
internet penetration in urban Africa
compares favourably with that in other
emerging markets.
71.3M
OTHER SSA
NIGERIA
36.1M
61.8M
76.7M
88.6M
98.9M
105.7M
109.7M
% OF TOTAL POPULATION
2010
2011
2012
2013e
2014e
2015e
TOTAL SSA
15.6%
18.5%
21.0%
23.3%
24.7%
25.7%
TOTAL NIGERIA
39.0%
47.2%
53.2%
58.0%
60.5%
61.4%
38. SSA IS COMING ONLINE. WE HAVE THE PLATFORM AND
THE CONTENT LIBRARY TO MEET THEIR NEEDS
