HDTV via Satellite


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HDTV via Satellite

  1. 1. HDTV via Satellite The Prime Infrastructure for the New Television 2nd IPTV Conference, Alexander Oudendijk London, 27th March 2006 Chief Commercial Officer, SES ASTRA
  2. 2. ASTRA EMEA Facts and Figures Satellite Fleet 12 ASTRA and 2 SIRIUS satellites for Europe, plus 1 specific for Africa and Intercontinental traffic 4 new satellites under procurement Key Features 19.2° and 28.2° East are Europe’s prime orbital positions for Direct-to-Home (DTH) 23.5° East Direct-to-Cable slot – with development into DTH position complemented by 5°East - with strong coverage of Nordic & CEE countries Customers Over 330 customers and more than 1600 channels & services Technical Reach ASTRA: 107 million households (45 million DTH/SMATV) Financials (EMEA, 2005) Revenues: 765 MEUR EBITDA: 604 MEUR Backlog: 4,045 MEUR 2
  3. 3. ASTRA’s Prime Channel Line-up Europe’s leading private and public television channels: Europe’s leading resellers are partners of ASTRA: 3
  4. 4. Agenda HDTV the real context of the upcoming battle: The HDTV attributes The eco-system behind its development The satellite advantages The role played by ASTRA The expected development The telco ‘IPTV play’ Their real motivation to get into TV distribution Their development plans & the associated limitation The potential of Hybrid Satellite-DSL solutions Cable players lack market power in Europe Conclusion 4
  5. 5. HDTV attributes 4-5 times the pixel resolution of standard definition brings brilliant picture quality, particularly noticeable on displays of 42”and above Consumers need new HD-compatible set top boxes and HD-ready displays or projectors Even with state-of-the-art compression technology, HDTV requires about 3 times the bandwidth of conventional digital transmissions HDTV fuels the demand for satellite transponders: 2-3 channels per transponder today vs. 8-12 for standard definition. Mid-term about 5 HD channels per transponder will be possible 5
  6. 6. HDTV in Europe – Driven by market forces The development of HDTV in Europe is driven by market forces and not by the regulator Enthusiastic and competent organizations are driving the introduction of HDTV on a national and European level Standardization Marketing Dealer & installer education 6
  7. 7. The ASTRA role in promoting HDTV ASTRA is one of the main drivers of the European HDTV introduction Initiated the European HDTV Forum in June 2004 Created one of the first HDTV web sites: www.hdtvforum.org Convinced manufacturer organisation EICTA to agree on HD logo’s Issued satellite HDTV receiver guidelines to manufacturers ASTRA Germany signed co-marketing agreement with Numerous HDTV related speeches to industry and journalists 7
  8. 8. Infrastructure – Why is Satellite ideal for HDTV? Compared to other broadcast infrastructures, satellite is ready today for HDTV: No bandwidth restrictions No network upgrades No change to satellites Only satellite is capable now to deliver a plethora of attractive HDTV channels Many cable networks need substantial infrastructure upgrades to deliver HDTV DTT has big spectrum constraints which severely limit HDTV ADSL networks need substantial upgrades to VDSL to carry IPTV signals in HD format Satellite is the driving force for the HDTV roll-out in Europe! 8
  9. 9. Content – HDTV via the ASTRA Satellite System Europe’s first HDTV channel HD1 (previously Euro1080) launched on ASTRA in January 2004 Pro7 and Sat1 launched their free-to-air HDTV channels in October 2005 Premiere launched 3 HDTV channels on December 3rd, 2005 (e.g. all 64 soccer worldcup matches in HD on ASTRA) BBC announced to start HDTV broadcasts in 2006 Canal+ announced launch for April 2006 BSkyB will launch an HDTV bouquet in 2006 By YE 2006, ASTRA will already carry approx. 20 HD channels on three orbital positions 9
  10. 10. Consumer Equipment – Sales of HD Ready screens in Europe Feb. - Dec. 2005 cumulated 2.0 mill. HD Ready TV sets sold in Europe in less than 1 year ! HD Ready TV sets sold in units (cum.) 2,500,000 2,000,000 in Europe 1,500,000 1,000,000 500,000 - Feb05- Apr05- Jun05-Jul05 Aug05- Oct05-Nov05 Dec05 Mar05 May05 Sep05 Source: GfK Retail and Technology Jan. 2006 (excl. 4th quarter sales for Belgium, Czech R., Denmark, Finland, Greece, Hungary, Netherlands, Poland, Portugal, Slovakia, Sweden, Switzerland) Europe: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Netherlands, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, UK Type of Screens: LCD, Plasma, Rear projection 10
  11. 11. Euroconsult Forecast on Households with HDTV-Sets Forecasts of Households equipped with HD-enabled TV sets in Europe (2003-2015) Households in million 100 90 Rest of Western Europe* 80 Nordic countries 70 Spain 60 Italy 50 France 40 30 UK & Ireland 20 10 Germany 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 * Includes Austria, Belgium, Greece, Luxemburg, Netherlands, Portugal and Switzerland http://www.euroconsult-ec.com Reproduction prohibited, © 2005 Euroconsult Germany, UK and France to be the largest HDTV markets 11
  12. 12. Euroconsult Forecast on HDTV Delivery Networks Forecasts of Households equiped with HD Receivers in Europe Breakdown by Delivery Network (2005-2015) Households in million 70 60 DTT 50 DSL 40 Cable 30 20 10 Satellite 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 http://www.euroconsult-ec.com Reproduction prohibited, © 2005 Euroconsult Satellite to be the leading mode of HDTV reception: approx. 40% of European households in 2015! 12
  13. 13. Telecom operators are proposing triple-play-based TV as a way to minimize revenue risk against cable or competitive DSL triple-play The risk of not going IPTV for the PTO is To lose 100% of some customer’s ARPU to cable … or to retain only 20% of the ARPU for those customers who are buying their broadband access from competitive DSL providers Benefit of doing IPTV for the PTO is less to capture an additional ARPU of 20-25 EUR/month from video services than to keep the subscription to their broadband access For the telcos, IPTV is a subset of the broadband access market 13
  14. 14. Telco Strategy Creates Market for Hybrid TV Solutions Assuming that by 2015, all Western European households will be connected via broadband, the fragmented broadband market structure will provide HD capable access (2HDTV+ 20 mbps downstream) to only approx. 50 million households. The IPTV market addressability is limited by multiple technical and commercial factors TOTAL Western European (*) TV HH : 160 M PC HH : 160 M BROADBAND HH : 160 M DSL HH : Others’ BB Cable 105.5 M HH: 9M HH : 45.5 M PTO retail DSL : Competitive Retail 52.5 M DSL : 52.5 M HD READY: HD READY: HYBRID HYBRID 26 M 26 M Addressable Retail TV Market For Telco SD & HD Market Market potential for Retail TV (via cable) potential for Hybrid DSLor Hybrid DSLor other with other with DTH DTH solutions solutions The technological choice of the telco’s & the fragmented broadband access market will create a market potential of about 60 million TV households for satellite based hybrid platforms such as BWA/DTH or DTH/DSL. 14 (*) Austria, Belgium, Denmark,France,Germany,Greece,Norway,Netherlands, Italy, Portugal,Spain Sweden,Switzerland,UK
  15. 15. Shares of Infrastructures in Europe Source : Strategy Analytics , 2005 The European cable industry is too patchy to be leader in HDTV development or even in IPTV roll-out. Cable will further consolidate and be, at best a fast follower of satellite on the HDTV in markets where it matters. 15
  16. 16. Cable Lacks Market Power in Europe With the exception of Benelux and Switzerland, cable coverage is patchy. Hence the cable sector is limited in its ability to compete for top content deals. In countries where cable has substantial coverage and/or market presence (Benelux, Switzerland, Germany) it has not been an innovation leader. A significant number of cable companies are now in the hands of private equity groups that are unlikely to support the investments required to transition customer bases from SD or even Analogue to HDTV Current focus of most cable company shareholders is on triple play and RGU (revenue generating unit) development with telco-based services (VoIP and high-speed data connection) 16
  17. 17. Conclusion HDTV is the ‘name of the game’ for the foreseeable future, and will be carried already in 2006 in multi-channel line-ups over satellite The IPTV market development for the foreseeable future will be limited due to the inability of the infrastructures to cope simultaneously with multiple HDTV channels and broadband internet access provision Meanwhile, the broadband market will grow in Europe and will offer multiple opportunities for satellite to combine its strengths with broadband access providers through the provision of hybrid triple play solutions Cable will continue to consolidate in order to stay relevant as secondary terrestrial infrastructure. However, cable is not expected to be an innovation leader in HDTV. 17
  18. 18. Thank you for your attention! alexander.oudendijk@ses-astra.com 18