IPTV:
                European Market Overview

                 Dan Cryan – Research Analyst



                       19...
Screen Digest

 Market research firm covering the global entertainment sector

 • The research journal
     – Research, in...
The market today

 38.7m broadband subscribers in Western Europe

 Over 85.6m pay TV households

 657,000 IPTV subscribers...
IPTV service launches per year
    9
    8
    7
    6
    5
    4
    3
    2
    1
    0
          1999     2000   2001 ...
Live IPTV services

    France         France Telecom Maligne TV, Free Telecom, Neuf Telecom , Canal
                   Pl...
As broadband market grows, so will
 annual broadband access revenues
                 5
                4.5
              ...
Connection Speeds vs Subscription Cost
                                     1.4
    Average downstream connection    1.2
 ...
Annual broadband access ARPU on the decline –
 service providers need value-added services to
 make up shortfall
         ...
Broadband penetration vs Pay TV penetration 2004
                            120
                                         ...
Broadband penetration vs Pay TV penetration 2009
                            120
                                         ...
IPTV: the space for growth

 Cable TV services offer the closest product to IPTV

 Countries with low cable TV penetration...
Access technology market share 1H 2005
                            40
                                                    ...
Access Technology

 DSL dominates the market - Europe-wide over 90% of ‘homes passed’

 Good quality, (i.e. reliably great...
The European IPTV market 1H 2005
                          300


                          250
IPTV subscribers (000s)



...
The European IPTV market 1H 2005 and 2009
                          2500
IPTV subscribers (000s)




                     ...
global media intelligence




                                                                                        nd
 ...
global media intelligence




                                                                                          y
...
France
 •   The largest IPTV market in Europe                                         Pay TV market share
     (281,000 su...
The European IPTV market 1H 2005
                     200

                     180

                     160

           ...
Germany

 •   Consumers traditionally unwilling to pay much for TV
      – High free satellite penetration (37% of TV HH)
...
European IPTV services by service offering



                            3




                                          ...
Netherlands

 • High cable penetration (94.3% of TV HH)

 • Digital cable and DTH satellite take up slow due to the high q...
Content options

 • Team up with established pay TV operators
     – French model: France Telecom, Free Telecom and Neuf T...
Thank You

                 dan.cryan@screendigest.com




www.screendigest.com                    global media intelligen...
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IPTV: IPTV:

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IPTV: IPTV:

  1. 1. IPTV: European Market Overview Dan Cryan – Research Analyst 19th October 2005 www.screendigest.com global media intelligence
  2. 2. Screen Digest Market research firm covering the global entertainment sector • The research journal – Research, intelligence, analysis – Since 1971 – The international media business’s leading news and market research journal covering: • Free & Pay TV Broadband • Video and DVD Film production & distribution • Cinema & D-cinema Video-on-demand • Video games Wireless (mobile) content • Digital media Technology & Content deals • Market reports • Consultancy • Online Intelligence services www.screendigest.com global media intelligence
  3. 3. The market today 38.7m broadband subscribers in Western Europe Over 85.6m pay TV households 657,000 IPTV subscribers 0.42% of European TV households have IPTV 8.8m IPTV subscribers at the end of 2009 www.screendigest.com global media intelligence
  4. 4. IPTV service launches per year 9 8 7 6 5 4 3 2 1 0 1999 2000 2001 2002 2003 2004 1H2005 www.screendigest.com global media intelligence
  5. 5. Live IPTV services France France Telecom Maligne TV, Free Telecom, Neuf Telecom , Canal Plus, TPS Germany T-Online Vision, Alice Movie Italy Fastweb Netherlands Versatel Spain Telefonica Imagenio Sweden Canal Digital, Telia Digital TV, Viasat UK Kingston Interactive TV, Homechoice www.screendigest.com global media intelligence
  6. 6. As broadband market grows, so will annual broadband access revenues 5 4.5 4 3.5 Belgium € Billions France 3 Germany 2.5 Italy Netherlands 2 Spain 1.5 UK 1 0.5 0 2002 2003 2004 2005 2006 2007 2008 2009 www.screendigest.com global media intelligence
  7. 7. Connection Speeds vs Subscription Cost 1.4 Average downstream connection 1.2 speed (Mb/s) 1 0.8 0.6 0.4 0.2 0 2000 2001 2002 2003 2004 Average subscription cost (€ / 50 month) 45 40 35 30 25 2000 2001 2002 2003 2004 www.screendigest.com global media intelligence
  8. 8. Annual broadband access ARPU on the decline – service providers need value-added services to make up shortfall 600 Annual ARPU € 500 Belgium 400 France Germany 300 Italy Netherlands Spain 200 UK 100 0 2003 2004 2005 2006 2007 2008 2009 www.screendigest.com global media intelligence
  9. 9. Broadband penetration vs Pay TV penetration 2004 120 Broadband 100 Pay TV Household penetration (%) 80 60 40 20 0 Ge It a Ne No Sp UK Fr Sw an ly th ai r rw ed m n er ce ay an en la y nd s www.screendigest.com global media intelligence
  10. 10. Broadband penetration vs Pay TV penetration 2009 120 Broadband 100 Pay TV Household penetration (%) 80 60 40 20 0 Ge It a Ne No Sp UK Fr Sw an ly th ai r rw ed m n er ce ay an en la y nd s www.screendigest.com global media intelligence
  11. 11. IPTV: the space for growth Cable TV services offer the closest product to IPTV Countries with low cable TV penetration (Italy, France, Spain and UK) Low digital cable penetration (Belgium, Germany) www.screendigest.com global media intelligence
  12. 12. Access technology market share 1H 2005 40 DSL 35 Cable Household penetration (%) Other 30 25 20 15 10 5 0 Ge It a Ne No Sp UK Fr Sw an ly th ai r rw ed m n er ce ay an e la n y nd s www.screendigest.com global media intelligence
  13. 13. Access Technology DSL dominates the market - Europe-wide over 90% of ‘homes passed’ Good quality, (i.e. reliably greater than 4Mb/s), connection is required Standard ADSL not enough for HDTV which requires FTTH or 2nd generation xDSL (ADSL 2+, VDSL, VDSL 2) www.screendigest.com global media intelligence
  14. 14. The European IPTV market 1H 2005 300 250 IPTV subscribers (000s) 200 150 100 50 0 G Ita Ne UK Fr No Sp Sw er an ly th ai rw ed m n er ce ay an en la y n ds www.screendigest.com global media intelligence
  15. 15. The European IPTV market 1H 2005 and 2009 2500 IPTV subscribers (000s) 2000 1500 1000 500 0 G Ita Ne UK Fr No Sp Sw er an ly th ai rw ed m n er ce ay an en la y n ds www.screendigest.com global media intelligence
  16. 16. global media intelligence nd la er itz s Sw nd la er th Ne um gi el B r ia st Au d an nl IPTV share of pay TV market (2004) Fi y an m er G k ar nm De UK n ai Sp nd la Ire ay rw No ia en ov Sl www.screendigest.com ce an Fr ly I ta 6 5 4 3 2 1 0 % of pay TV homes using IPTV
  17. 17. global media intelligence y an m er G nd e rla itz Sw d an nl Fi um gi el B K IPTV share of pay TV market (2009) U nd la Ire nd s la er th Ne ria st Au ay rw No k ar nm De ia en ov Sl n ai Sp www.screendigest.com ce an Fr ly I ta 25 20 15 10 5 0 % of pay TV homes using IPTV
  18. 18. France • The largest IPTV market in Europe Pay TV market share (281,000 subscribers) • Very competitive telecoms market Analogue Pay DTT, 0.2 – Roughly 2.3m unbundled lines at the end of terrestrial, 1H 2005 21.0 – 3 telcos have launched IPTV Satellite, • Competitive DTH Market 40.2 – 16.8% of TV HH IPTV, 4.5 – Canal Satellite and TPS have both launched IPTV services • Small but dynamic cable market – 14.6% of TV HH Cable, • Low pay TV penetration should give space 34.2 for growth www.screendigest.com global media intelligence
  19. 19. The European IPTV market 1H 2005 200 180 160 140 subscribers (000s) 120 100 80 60 40 20 0 Fr Ne T- Ly Fa M Ca TP Te Ho O al ee se uf st le na S m nl ig fo w ec Te Te lP in ne eb ni ho le e le lu ca TV co co s ic e m m www.screendigest.com global media intelligence
  20. 20. Germany • Consumers traditionally unwilling to pay much for TV – High free satellite penetration (37% of TV HH) – High analogue cable penetration (58% of TV HH), available for a small monthly fee • IPTV services from T-Online and Hansenet offer VoD only • T-Online – Service available to both the TV and PC – Sold 36,000 titles in Febuary 2005 rising to 72,000 in June – Running trials for HDTV to the PC over ADSL 2+ and VDSL in Hamburg and Stuttgart • Hansenet – Hansenet only offer Alice Movie in Hamburg – Encoded at 1.5Mb/s in MPEG 1 – Signed up 1,100 subscribers since launch in mid-2003 – Buy rate of 0.45 www.screendigest.com global media intelligence
  21. 21. European IPTV services by service offering 3 15 10 Pay TV + VoD Pay TV only VoD only www.screendigest.com global media intelligence
  22. 22. Netherlands • High cable penetration (94.3% of TV HH) • Digital cable and DTH satellite take up slow due to the high quality of the analogue cable offer • Versatel entered the IPTV market in January 2005 – Bought the rights to Dutch football until 2008 for €30.5m per year – At the end of July 20,000 had signed up – The service launched in at the start of the football season in August www.screendigest.com global media intelligence
  23. 23. Content options • Team up with established pay TV operators – French model: France Telecom, Free Telecom and Neuf Telecom IPTV subscribers can access Canal Plus/CanalSat and TPS packages – Sweden: Canal Digital and Viasat partner various network operators to offer their packages over IP • Aggregate the content yourself – Versatel (NL) and Belgacom (BE) have bought exclusive football rights – T-Online signed its own deal with the film studios • Hybrid solution – Neuf Telecom (F) uses the national digital terrestrial television network for delivering content not available over IP www.screendigest.com global media intelligence
  24. 24. Thank You dan.cryan@screendigest.com www.screendigest.com global media intelligence

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