Where Television Is Moving? The Italian Experience Extending the TV viewing experience with the DTT Platform Television as Business Conference Kyev, September 15th, 2011 1
AgendaWhere Television Is Moving? The Italian ExperienceExtending the TV viewing experience with the DTT Platform Italian Market Overview The connected device threat The making of the “Italian Digital Terrestrial Platform” The connected TV proposition at Mediaset 2
The Analogue Switch Off Government Calendar ItalianDTT Transition – Switchoff areas 2008-2012 DTT Only Areas 2010 2011 2012 2009 2008 16,4 M HH 66% of total HH 19,8 M HH 79% of total HH 25,0 M HH 100% HH 6,6 M HH 26% of total HH 0,66 M HH 3% of total HH Sardegna Valle d’Aosta Piemonte (west) Trentino Alto Adige Lazio Campania Piemonte (east) Lombardia Emilia Romagna Veneto Friuli Venezia Giulia Liguria Marche Toscana Umbria Abruzzo Molise Basilicata Puglia Calabria Sicilia Source: AgCom, Istat, internalelaboration 3
Italian Market Overview: Primary TV set HH by Platform End 2010 At the end of 2010 more than 80% of Italian HH are all digital Source: elaborationon ITMediaConsultingdata (25 M total HH) 4
Italian Market Overview: Players and ResourcesYear 2010 Italian Players Market Shares Total Market Resources: 8.6 billion euro Source: elaborationon ITMediaConsulting data 5
Italian Market Overview: DTTMUXsOverview 6 25 National MUXs plus various local MUXs according to the switch off area *6 internal digital dividend multiplexes assigned by Ministry through a “beauty contest”
Italian Market Overview: Channel Line Up Overview 7 All Digital Areas Channel Offer:
50+ free-to-air digital channels (included some HD and time shifted channels)
Hundreds of local channels depending on the Region
Interactive services to enhance viewing experience (available on lots of channels)
Pay TV services accessible through “off the shelves” set-top boxes or CAM for iDTVs
* The Logical Channel Numbering (LCN) functionality allows channels to be automatically ordered on a pre-defined order decided at national level by the Ministry.
Italian Market Overview: Access Devices – DTT Decoder Market End of May 2011 Total Decoder Market : 51.204.221 units (Feb ’04 – May ’11) Last Year Decoder Market : 18.165.306 units (May ’10 – May ’11) External Decoder Source: GfK Marketing Services Italia 8
Connected TVs are Penetrating Markets Strongly Over-theopTV: video and interactive services delivered on TVs through internet connectible devices iDTV Broadband STB /Media Center e.g. AppleTV Blu-ray /DVD Player Game Consoles Hybrid STB 9
Connected TVs are Penetrating Markets Strongly Highly Fragmented Market and Broadcaster Loss of Viewer Control TV set Manufacturers, each one with its own platform: Samsung LG Sony Philips Panasonic Vestel (Inno Hit, … ) … And also: Apple (AppleTV, …) Google (GoogleTV, …) Tens of other devices (Boxee, …) 10
Connected TVs are Penetrating Markets Strongly Connected TV WidgetPortal Widget TV Portal - How the Broadcaster brands can be diluted Simulation 11 The choice of being on Manufacturer portals is not a matter of technology; it is a mere choice of business models and business relation with Manufacturers.
12 To be or not to be on third parties platforms? Isn’t better to exploit our rights on a broadcasters’ owned digital platform? Isn’t better to maintain the viewer control over TV Manufacturers?
The Italian Digital Terrestrial Platform A DVB-GEM based platform to enable enhanced DTT business models Since 2003 Italian Broadcasters, joined in the DGTVi, an Association aimed at promoting Digital Terrestrial services interoperability, chose to specify and build a commonDigital Terrestrial Platform based on international open standards (i.e. DVB-T, DVB-GEM) The DGTVi Technical Group define and publish the D-Book, the baseline specifications for the platform receivers (end 2004). Together with the CE Industry, the Joint Technical Group of DGTVi and HD Forum Italia, released the HD-Book2.0 that specifies the baseline requirements for compatible HD receivers (Jan 2011). DGTVi/HD Forum baselinetechnicalspecificationsforcompatible HDTV receiversforItalian market (January 2011) DGTVibaselinetechnicalspecificationsforItalian market (September 2004) A stablebaselinespecificationisnecessaryto create trust for the Consumer, togiveoperationalcertaintyto the Operatorsto exploit new business model (e.g. PPV) and toprovide a referenceforManufacturers 13
The Italian Digital Terrestrial Platform A DVB-GEM based platform to enable enhanced DTT business models DGTViProgramme Label Alongside the work of technical specification, a DGTViprogramme label has been rolled out since the end of 2007; agreed with the CE Industry, it guarantees the consumer products technical features on the high street shelves. DGTVi Gold Label Main Technical features InteractiveHD receivers (set -top box or iDTV) ready for broadcast HDTV and supporting unprotected “over-the-top” services. Full compliance with HD-Book DTT 2.0, except DVB-T2 (waived until 2013):
European 7MHz VHF
Automatic LCN functionality (with cross-border conflicts resolution and HD simulcast)
Multi CAS/DRM capability either embedded or via CIplus CICAM
DGTVibluelabelforpay and interactive TV DGTVigoldlabelforpay, interactive, connected HDTV 14
The Italian Digital Terrestrial Platform A DVB-GEM based platform to enable enhanced DTT business models Horizontal, Interoperable, Interactive, Hybrid Broadcasting Broadcasting and interactive services Broadband Service Delivery Platform & Apps Store “Advanced” interactive and “on demand” unprotected services (via OTT) Broadband access device Internet Horizontal:every one interested in offering services can exploit the platform; it is based to DVB open and international standards. Interoperable: thatmeans with a unique device, directly from the high street shelves, the viewer has access to different services from different providers, free to air or pay TV services at the same time onto the same device, thanks to the embedded CAS into STBs and CAMs on iDTVs. Interactive:based on DVB-GEM. Since early days lots of interactive applications have been deployed from Italian Broadcasters; Mediaset, Telecom Italia Media and RAI, all of them are exploiting via broadcast interactive services. Hybrid:new opportunities and new potential for the Broadcasters thanks to hybrid devices that join together broadcast and broadband capabilities by the means of DVB-GEM. Advance interactive apps and “on demand” unprotected services are possible viaover-the-top. 15
16 But something is still missing! Protected over the top services, that means Digital Right Management (DRM)
Tivù, Association of Italian Broadcasters, as manager of Broadcaster platform to offer services to maintain viewer control over market fragmentation Tivù is offering the following services to participant Broadcasters:
Access to EPG, LCN and content indexing
Security services for content and applications, acting as “Certificate Authority”
Tivù defines the interoperable receiverrequirements for the Italian market leveraging existing platform assets and expertise (DGTVi and HD Forum Italia):
Open technology and standards:
DVB-GEM (GloballyExecutable MHP) to deliver interactive service;
Marlin DRM, a published standard, to offer Broadband delivered content and application security services
DGTViand HD Forum Italia specified the “DRM Addendum”, the special requirements for broadband protected media delivery on compatible HD receivers for the Italian market and “BAS Addendum” for Broadband Application Security.
Tivù is granting the Tivù On label to DGTVi gold label devices compliant with the DRM Addendum specifications. 17 The Italian Digital Terrestrial Platform A DVB-GEM based platform to enable enhanced DTT business models On March 2011, “Tivù” the Italian Television Service Provider founded by the three main national Broadcasters – RAI, Mediaset and Telecom Italia media – chose the platform DRM system, signing an agreement with Intertrust to exploit Marlin Digital Right Management in Italy: Italian TV service provider “Tivù” and “Intertrust Technologies Corporation” announced a partnership to create Marlin Digital Rights Management (DRM) based services for Italian broadcasters wishing to create “over the top” Internet TV channels.
18 The Italian Digital Terrestrial Platform A DVB-GEM based platform to enable enhanced DTT business models Tivù, Association of Italian Broadcasters, as manager of Broadcaster platform to offer services to maintain viewer control over market fragmentation Interactive HD receivers, set-top boxor iDTV, ready for broadcast HD premium andsupporting protected “over-the-top” services. A DGTVi Gold label receiver will be eligible also to TivùOn label by complying with the Tivù profile of the DGTVi/HD Forum Italia specification:
Marlin based “DRM Addendum”
“BAS ”Broadband Applications Security Addendum, a generic framework for securing over-the-topapplications.
An Horizontal Interoperable Device – based on Open Standards Technologies: Multiple CAS, GEM, Hybrid and Marlin DRM – ready for broadcast HD premium and supporting protected OTT services 19 The Italian Digital Terrestrial Platform A DVB-GEM based platform to enable enhanced DTT business models Horizontal, Interoperable, Interactive, Hybrid and “Secure” Broadcasting Broadcasting and interactive services Broadband Service Delivery Platform & Apps Store “Advanced” interactive and “on demand” protected services (via OTT) Broadband access device Internet
“Gold Label” Devices Market Penetration Forecast Interactive BB Services Target Devices – Italian Market Forecast Householdswith at leastone internet enableddevice (~ 16 M HH) Householdswith at leastone internet enableddeviceand a Broadband connection (~ 12 M HH) Thousands HH Householdswith at leastone internet enableddeviceconnectedtoBroadband (~ 6 M HH) Householdswithat leastonebroadband connectedDGTViGOLD labeldevice (~ 3.6 M HH) Source: DGTVi, E-mediainstitute, ScreenDigest, E-Res, GFK and internalelaborations - Jan 2011 20
The Connected TV Proposition at Mediaset The best of breed technology to enable the best of breed business models Exploiting technology evolution to maintain control and turn it into sustainable business models. Focus on: Contextual extension of a TV program experience; means to interact with TV programs in real time (e.g. social TV, enhanced TV, second/third screen experience, …) Access to content “on demand”; means to unpack “channel bouquet” into “content pills a la carte” (e.g. catch up TV or advance DVD windowing for premium content) Main projects:
Interactive applications to enrich TV programs
Social TV application (share and checking-in of TV programs)
“Premium Net TV”, i.e. premium content “a la carte” through a DVB-GEM application over-the-top delivered.
The Connected TV Proposition at Mediaset Extension of a TV program experience Extension of a TV program experience with interactive applications, seamlessly delivered via BC & BB, to enrich and interact with TV programs 22
The Connected TV Proposition at Mediaset Extension of a TV program experience Extension of a TV program experience with interactive applications, seamlessly delivered via BC & BB, to enrich and interact with TV programs 23 Weather Report iApp News iApp Sport iApp
The Connected TV Proposition at Mediaset Extension of a TV program experience Extension of a TV program experience with interactive applications, seamlessly delivered via BC & BB, to enrich and interact with TV programs 24 “Who Wants To Be A Millionaire?” interactive Application
The Connected TV Proposition at Mediaset Extension of a TV program experience Extension of a TV program experience with interactive applications, seamlessly delivered via BC & BB, to enrich and interact with TV programs Share/Check In 25
Mediaset Premium NetTV Access to content “On Demand” A content “on demand” service, via broadband DVB-GEM application Main Features Available on PCs and TVs “for free” to all Mediaset Premium subscribers (to a monthly threshold of 60 hours); 1500 + hours of content on demand: cinema, TV series, documentary, cartoons, fiction, free-to-air catch up TV, news, soccer, sports …; Premiere: selection of “Home Video” window blockbusters at 2,99€ (a catalogue of around 50 titles); Most of the content available in HD format (depending of the BB connection bandwidth); Easy access to the offer through a “graphic carousel” organized in understandable categories managed by a recommendation engine with relation to viewing experience and to editorial and business rules (last arrived, most viewed, preferred); Virtual thematic channels (Cinema Italia, Cinema Hit, Series, Kids, Soccer, Shows, Fiction, Lifestyle, …) ; thematic content aggregation as a catalogue playlist. DRM for content protection; adaptive streaming technology; different encoding profiles (900 Kbit/s to 4,5 Mbit/s for HD); automatic bandwidth recognition; trick modes (play/pause, seek FFW, seek RWD); Access devices: Telesystem TS7900HD, ADB, Samsung and Humax “gold label” set-top boxes and on the Mediaset Premium branded “Premium on Demand” set-top box. 26
The Connected TV Proposition at Mediaset Access to content “On Demand” Multiple access points to “Mediaset Premium NetTV”, content “on demand” via broadband DVB-GEM application 27 From Free-to-Air Portals From Electronic Program Guide From Premium NetTVchannel
In Summary Italian Broadcasters have built a consumer device operating environment to maintain viewer control and exploit owned rights by themselves Do not surrender to approach market in fragmenting rights to myriad of devices controlled by third parties Continue to offer a secure, trusted environment for entertainment establishing solid position in non linear video market where new – even external – players are coming Experiment new way to interact with programs and brands to learn how to build new sustainable business models for pay TV and new advertising markets for ad investors 28
Thank you for your attention firstname.lastname@example.org 29