2007 11 16 Iptv Europe And Asia V1.3


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Overview of IPTV deployments and packages in Europe and Asia

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2007 11 16 Iptv Europe And Asia V1.3

  1. 1. IPTV This picture Reality Check Europe and Asia is a wildcard. You will find photos and pictures which are graphically produced – simply use the following navigation in the think-cell chart toolbar: The Americas Executive Institute 2007 “More” >> “Image Library” Lars Bodenheimer VP Technology & Network Engineering Detecon, Inc.
  2. 2. IPTV Evolution IPTV will evolve from a pure IP based TV service to a multimedia, multiplatform and multitask based “Next Generation TV” “[IPTV] is a process where our distributors [franchised operators] take our linear networks and chop up the signals into little packets and send them out over a secure network and put it back together for their customers.” [Sean Riley, Senior Vice President of Sales for Fox] “[NGTV] is a TV offering that goes beyond what MSOs, satellite providers and Telcos are currently offering. Its contours are being defined everyday by, among others, network operators, content 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT owners, internet brands, consumer electronic manufacturers and viewers. NGTV will definitely expand to encompass a form of WebTV and it will also be mobile. [Detecon, Inc.] Page 1
  3. 3. IPTV Platform A carrier that provides 1G/2G IPTV services will implement, integrated, or otherwise realize one or more of the building blocks below 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT Page 2
  4. 4. IPTV - who is leading, who is following? IPTV is seeing constant growth all over the world, but Europe is expected to keep its leading position for the next few years 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT Page 3
  5. 5. IPTV - deployments worldwide A mix of incumbent and local players determine the current IPTV service provider landscape 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT Page 4
  6. 6. IPTV – different regional drivers and inhibitors The situation differs significantly from continent to continent as well as sometimes country to country USA Western Europe Pay TV Free-TV High ARPU, high usage High usage Cable operators’ 3Play Early start “I love my TiVO!” Often weak cable operators TV is plural Killer content Soccer 16 Point-Text IPTV barely laid out yet due Largest populations to high regulatory hurdles Islands of the highest Telcos have better land line broadband penetration 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT coverage than cable levels providers Ocean of poor network infrastructure Latin America Asia Page 5
  7. 7. IPTV in Western Europe IPTV is facing strong competition especially by Terrestrial Television in Europe but is gaining more momentum Terrestrial Television Satellite Subscribers CATV Subscribers IPTV Subscribers Total Broadband Subscribers 50 47.2 45 44.1 42.5 44.6 43.5 40 42.7 35 32.9 30 29.5 22.5 30 29.5 29.3 25 23.9 24.6 24.5 20 22.5 15 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT 10 5 3.25 0.8 1.65 0.13 0 2004 2005 2006 2007 TV watchers and broadband subscribers in France, Germany, Italy and Spain (2004 – 2007, million households) Source: InfoCom 2007 Page 6
  8. 8. IPTV in Western Europe While FastWeb and Orange.TV represent the biggest, earliest and most innovative IPTV markets, DT faces a substantially more difficult task FastWeb Orange.TV T-Home FastWebTV + (1x, 2x, 4x) Offer Triple Play Triple-Play Triple-Play All national channels, VoD, All DTT Channels, Very good 70 (100) TV Channels + Channels Soccer on PPV basis Pay-TV and VoD Offer VoD + Soccer Option Recommendation System HDTV and VoD Content HD, Timeshifted TV, DVR, Key Features Internet by TV HD, VoD, PVR optimized for Cell and PC TV Archiv, Printed TV Guide DSL, FTTH/FTTO ADSL 2+, FTTH Microsoft TV Technology IPTV Platform self developed Platform mainly Thomson VDSL2 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT 20 € (single) 29,95 € (8 MBit) 59,95 € Basic Price 65 € (Triple-Play) Plenty of extra fees 74,95 € Plus 72.2% Marketshare ~ 50 % N/A (1 million + BB subs) Source: Detecon Research, Company Websites, Ovum 2007, Screen Digest 2007 Page 7
  9. 9. Italy / FastWeb After its start FastWeb became the leading reference worldwide for how to create and build IPTV services Italy FastWeb 400.000 IPTV subscribers as of IPTV Launch 2003 (1st) June 2007 230,000 IPTV subscribers (21% Household penetration: 5% of its broadband customers, one (2010: 13%) of the highest rates worldwide) Fairly limited terrestrial TV service World leader in terms of IPTV (switch off in 2008) ARPU contribution to broadband revenue (Residential ARPU is EUR No cable operators 61) Goverment subsidised set-top Strong innovator boxes for DTT 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT Worlds first Triple Play provider Triple-Play popularity restricted (2003) Simple pricing system FastWebTV (IPTV Only Service) Successful local and child-content Page 8
  10. 10. ContentWise Recommendation System (Italy) ContentWise represents the next step for IPTV. From building up and expanding the IPTV portfolio, to leveraging and streamlining what there is 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT Page 9
  11. 11. France / Orange (France Telecom) France is the biggest and one of the most competitive IPTV markets worldwide France Orange.TV 2.55 m IPTV subscribers as of Launched in 2004 (1st) June 2007 (2010: 3,4m) 0.975 m subscribers (Q3 2007) Household penetration: 13.7% Adopted Price, content and Weak cable coverage of 30% and features due to strong competition high willingness to pay for TV Premium content packages Two satellite players, open to IPTV incorporating TPS and Canal+ as a delivery channel (now merged Pay-TV programs though) Flexible service options Strong emphasis on locally- Technique support better than 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT produced content. competitors Analog TT to be switched off in Agreements to offer an exclusive 2012 variety of channels Page 10
  12. 12. Germany / Deutsche Telekom Germany is so far a very difficult market for IPTV, but despite initial problems, strong growth is expected for the next years Germany T-Home 218,000 IPTV subscribers as of Launched Q4 2006 (2nd) June 2007 (2010: 3,195M) Number of subscribers: N/A Household penetration: 1% believed to be less than 100,000 (2010: 8%) IPTV coverage: 15M HH Highest avaiability of FreeTV in EU Goal of 1M Triple-Play customers and low priced, widely available end 2007 had to be reduced to CATV (->regulation) 100k–200k (2010: 1.5M) Price is key Factor Weak performance addressed with Little interest in features 25% price cut 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT Unawareness of VoD and New features personalized programming guide Bundesliga special Analog TT to be switched off in Technical and regulatory Problems 2011 Page 11
  13. 13. IPTV in Asia The situation for IPTV differs greatly among Asian countries. Where the worlds highest broadband penetrations border regions of poor network infrastructure PCCW China Telecom Yahoo!BB Triple Play (Qadruple) Triple-Pay Offer Triple Play Now TV (independent) (Quadruple future) SMG Channels 36+ Channels, Channels 131 channels (50 exlusive) 5600h VoD or 1000 VoD titles Program „a la carte“ Video Gaming Key Features PVR, 48h Timeshift TV TV + VAS TV-Base Service ADSL+, FTTH ADSL, FTTN ADSL, (FTTH) Technology Self developed UTStarcom, ZTE UTStarcom 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT Free 60yuan ($7.42) 33 $ Basic Price + price by extra channel (Shanghai) + Extra Services 70 % Marketshare ~ 55% (Estimate) N/A (49 % among all TV offers) Source: Detecon Research, Company Websites, Ovum 2007 Page 12
  14. 14. Hong Kong PCCW PCCW has written a success story with an early launch of IPTV, maintaining a fairly high ARPU compared to other providers in Asia Hong Kong PCCW - Now TV 878,000 IPTV subscribers (End Launched 09/2003 2006) 758,000 subscribers (End 2006) IPTV Household penetration ARPU: $21 39.3% at the end of 2006 Over 1.74 M broadband households (78% penetration rate) Initial setbacks Free IPTV channels included in Broadcasting Bill in 2000 every broadband subscription Only few Free-TV channels World leading Innovator Split-screen: Soccer + VAS 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT Intense broadband competition “a la carte” subscription model High population density IPTV drives PCCWs wireline Hong Kong is the only market with business IPTV ARPUs above those of cable and satellite Pay-TV market leader Offers IPTV consulting now World biggest Provider Page 13
  15. 15. China / China Telecom Different go-to-market approach necessary, unique market, regulatory poorness China China Telecom ~ 500,000 IPTV subscribers Launched 05/2005 (estimated) 221,000 IPTV subscribers by the Broadband penetration: 13% end of 2006, predominantly in Shanghai Beijing Olympic Games 2008 Initial start with a 5000 user IPTV network, which had a capacity of Content is heavily regulated 100,000 concurrent media streams Hughe market, little infrastructure Shanghai followed supporting and buying power 100,000 customers (today 7 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT Cable TV ARPU is low at Rmb15- deployments) 20 (US$1.8-2.4) for access to over Emphasis on basic features like 50 channels Live TV, VoD and timeshift PVR Regulatory obstacles for IPTV Partnered with Shanghai Media Roughly 2200 cable TV operators Group for content Page 14
  16. 16. Japan / Yahoo!BB Although great technological potential and innovation affine people, Japanese show surprisingly little interest in IPTV so far Japan BB.TV 1M estimated IPTV subscribers Launched Q2 2003 (2nd) Broadband penetration: 52% Number of subscribers: N/A One of the worlds best developed Most innovative Player on the broadband infrastructure japanes market Low broadband prices Flexible pricing, 36 TV Channels or End 2006 Japan had 26.7 M 1000 VoD titles per month to broadband customers (30% FTTH) choose from + „a la carte“ 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT High interest in new techniques G-Cluster (Gaming) Despite this overall Pay-TV TV-Base Service channels are underperforming Quardrupel-Play (all these services (Sattelite, Cable) shall come to handsets) Page 15
  17. 17. Detecon at a Glance Our international presence ensures your international success. Our regional offices support you throughout the world and are suiting the dynamic growth in ICT markets. Foundation: 1954 Diebold 1977 DETECON Turnover 2006: EUR 148 million 650 consultants 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT Offices in Germany: Bonn (HQ), Dresden, Eschborn, Munich International locations: Abu Dhabi, Bangkok, Johannesburg, Mexico City, Beijing, Reston, Riyadh, San Mateo, Singapore, Zurich Page 16
  18. 18. Research Methodology We have been involved in Telco TV projects since the 214 Waiver of the FCC in 1992 and in Germany with the videotext and T-Vision. Primary Research 650 consultants >3200 projects 120 countries Strategic workshops Users Clinic Secondary Research Technology reports Market, industry and competition analyses Company and country 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT specific information Analysts‘ reports No formal Delphi forecasting, no Oxford style debate, some wisdom of crowd. The opinion in this presentation is those of the authors and do not necessarily reflect the official position of any other entity affiliated with Detecon, Inc. Page 17
  19. 19. Your contact: Lars Bodenheimer 2007-11-16 IPTV EUROPE AND ASIA V1.3.PPT Vice President Think forward Technology & Network Engineering Detecon, Inc. 12007 Sunrise Valley Drive, Suite 105 Reston, VA 20191 USA (703) 480-0812 Phone lars.bodenheimer@detecon.com www.deteconusa.com Page 18