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Understanding TV sector in Turkey / Penetration and Distribution


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A brief document to understand the basics of TV sector in Turkey. This is the first part which is about TV penetration and distribution.
Please contact me for an extended version which comprises more subjective opinions and detailed information.

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Understanding TV sector in Turkey / Penetration and Distribution

  1. 1. Understanding Turkish TV Sector 2016 Part 1 Distribution
  2. 2. TV Distribution Content • Overview • TV Penetration Statistics • Turksat • Digiturk • D-Smart • Cable TV • IPTV • Terrestrial • RTÜK Part1
  3. 3. Overview • Turkey is a Free To Air market dominated by satellite • Technical penetration is easy (Having a feed on Turksat 42 quickly makes the channel available to >%75 of the market) • But gaining a meaningful reach is difficult due to crowded FTA offering • Turksat is asymmetrically dominant due to above facts • Securing a place in Digiturk is a must for channels to extend their reach especially towards operator’s high income subscribers • Carriage is not a revenue source for national TV channels, on the contrary it’s a cost • Only value added international content (sports, documentary, movie, adult, etc) has carriage revenue potential • (Analog) terrestrial has dropped to a “commercially negligible” level in recent years • Contrary to many neighboring markets, Cable TV is very weak in Turkey • IPTV and OTT is not growing up very quickly due to lack of sufficient fiber infrastructure and expensive broadband fees • Thanks to the eye popping penetration rate of smart phones in Turkey, TV on mobile has potential
  4. 4. 71% 18% 9% 2% FTA Satellite DTH Cable + IPTV Analog Terrestrial TV Penetration by Number of Households (2016 Q2) Total TV Households ~ 21.000.000 Free To Air (via Satellite) ~ 15.000.000 DTH (Satellite PayTV) 3.850.000 Cable + IPTV 1.850.000 Analog Terrestrial (as primary TV in HH) ~ 450.000 Source: BTK Report 2016 Paid
  5. 5. Cable and IPTV • Cable Total: 1.150.000 (Turksat A.Ş.) • Digital Cable: 850.000 • Analog Cable: 300.000 • IPTV Total: 700.000 • Tivibu: 400.000 • Turkcell TV+: 300.000 DTH – Paid • DTH Total: 4.300.000 • Digiturk: 2.700.000 • D-Smart: 1.000.000 • Tivibu DTH: 150.000 Distribution Platforms by Number of Households (2016 Q2) Free To Air via Turksat • FTA Total: ~15.000.000 By Satellite Turksat 42°E: ~16.500.000 Eutelsat 7°E: 2.400.000 Source: BTK Report 2016 Satellite
  6. 6. Türksat A.Ş. Facts • Virtually covers all of the households in Turkey; and >75% of which are already active watcher • Fully owned by Turkish Treasury • Hot point (42°East) for Turkey • Carries more than 600 TV channels • Largest teleport operator – Uplinks many local and thematic channels • Covers Europe, Near East, and some part of Africa with different beams • Sole (operational) cable tv operator in Turkey – Digital cable under KabloTV brand • Last frequency reallocation was made on September 2014 • Current financial status: Virtually immortal (public money)
  7. 7. Digiturk Facts • Largest pay TV (DTH) platform • Around 3 million subscribers • Holds TV rights of Turkish Super League until 2022 season • Pays around 500 mio $ per year for football rights • Acquired by Bein Media Group from Qatar recently • Basic package price (2016Q1): 22 TL/month
  8. 8. D-Smart Facts • Secondary TV (DTH) platform • Around 1 mio subscribers • Mainly a packager of Turksat FTA feeds – lower operating costs • Recently lost rights for European football (CL & Europa league) • No solid distinguishing content • Owned by Dogan Media • Basic package price (2016Q1): 27 TL/month
  9. 9. Cable TV Facts • Only Turksat runs a network (10 other licencees available but none operational) • Less than 5% penetration • Analog is being gradually replaced by digital network • Teledunya (digital cable) has been rebranded as KabloTV in 2016 • Basic package price – analog (2016Q1): 13 TL/month • Basic package price – digital (2016Q1): 15 TL/month
  10. 10. IP TV Facts • Very small user base but growing • Mainly driven by tri-play campaigns of telcos • Tivibu: Turk Telekom’s (Leading telco) IPTV Platform • Recently acquired European Football rights • Recently launched DTH option • Has a mobile version on GSM (after Avea – TT merger) • Turkcell TV+: Turkcell’s (Leading GSM Operator) IPTV Platform • Has a mobile version on GSM • Vodafone: Might have intention to launch an IPTV platform in close future • Has a premature mobile version on GSM • Basic package price – Tivibu (2016Q1): 29 TL/month • Basic package price – Turkcell TV (2016Q1): 15 TL/month
  11. 11. Terrestrial Facts • Percentage of “solely Analog Terrestrial watchers” is below 2% according to last establishment survey (around 10% of households have AT as secondary source) • Major TV channels still keep their AT networks up and running in spite of high OpEx. • Digital terrestrial regulation is still kept on hold by the authority Digital Terrestrial • The “digital terrestrial license tender” which is a prerequisite for digital switchover was made in 2013 but failed • Meanwhile due to decreasing penetration of terrestrial, TVs have gradually lost their appetite for a new tender and started to lobby for assigning of licenses without a tender • Anten A.Ş., a consortium company set by major TV stations, has been still waiting for the new tender in order to take action for the foundation of consolidated digital terrestrial infrastructure • Nevertheless Radio and TV regulator (RTUK) still seems to be persistent about the license tender • Telecommunication regulator (BTK) has recently allocated upper fq band to 4G
  12. 12. RTUK on distribution • Radyo Televizyon Üst Kurulu is the main regulatory authority for broadcasting • The supreme commission has 9 nine members each of which are assigned by political parties based on the percentages of their seats in the parliament on Distribution • Apart from its duties regarding regulation of content and advertisement, it also has power on Turksat by law • RTUK enforces TV channels which are “targeting Turkish citizens in Turkey via Turksat” (law statement), to hold a license from RTUK • Consequently RTUK keeps pressure on Turksat to prevent non RTUK licensed Turkish (targeting Turkey) channels • The main two reasons of prevention is political orientation and improper advertisement schemes of the channels • Recently (2016 Q1) Turksat has blocked around 90 non-licensed or foreign license holder TV channels (generally local or small broadcasters)
  13. 13. Thank you! by pleasecontactmefortheexecutiveedition whichcontainsmoreinfoandsubjectiveopinions (itsfree!)