Pay-TV providers in Europe face challenges from new competitors and changing consumer behaviors. As a result, innovation has become a top strategic priority for most European pay-TV operators. Operators are investing in their product and service portfolios to drive growth, focusing on improving the consumer experience through offerings like 4K video, third-party apps, and standalone OTT services. European pay-TV providers are well-advanced in deploying new set-top boxes compared to global peers, and almost all offer TV Everywhere services, though other newer categories are less widespread. Adjacencies remain a focus for only a limited number of European operators at this time.

1. Client
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May 2017│ Contact: jon.watts@mtmlondon.com │ Tel: +44 (0) 20 7395 7510
Pay TV Innovation Forum 2017
Exploring the next generation of growth
opportunities for pay-TV operators in EMEA

2. 1
Across Europe, pay-TV service providers face a more
challenging market environment
Key trends and developments
Pay-TV service providersNew OTT
entrants
Telco entrants
Free content Direct to
consumer
Growth of broadband penetration and
speed
Advances in delivery technology (e.g. cloud, virtualisation)
Free-to-air TV
Challenging macroeconomic
conditions

3. 2
As a result, innovation is becoming more important for Europe’s
pay-TV industry as a whole
Key trends and developments
Where does innovation rank among the pay-TV industry’s top strategic priorities?
12%
70%
16%
2%
The number one priority
A top three priority
Important, but not a top priority
Not important
82% see innovation
as one of the top
priorities for the
industry
Source: Pay-TV Innovation Forum survey: Where does innovation rank among the pay-TV industry’s top strategic priorities? (n = 92)
• Pay-TV operators need new and
improved offerings to remain
competitive and drive growth
• Efficiency is no longer enough – pay-TV
providers need organic growth to
deliver breakthrough results
• The accelerated pace of change
requires greater flexibility and more
effective innovation
• Innovation successes are increasingly
expected (and demanded) by
customers and investors

4. 3
Around the world, pay-TV providers are investing to develop
and extend their product and service portfolios
Key trends and developments
Portfolio scores by region (2016/2017, weighted average)
Source: MTM analysis of pay-TV service provider portfolios in Asia Pacific (n = 64), EMEA (n = 100), Latin America (n = 40), and North America (n = 16), covering 42 countries, like-for-like
No. of major
operators
16 100 64 40
North America EMEA Asia Pacific Latin America
2016
Change in 2017
Each pay-TV provider is scored in three product areas (i.e. TV platform,
online services and adjacencies) based on how advanced their portfolio
of products is: higher scores = more advanced features available

5. 4
EMEA providers continue to invest in consumer experience, by
introducing 4K, third-party apps, and standalone OTT services
Key trends and developments
Source: MTM analysis of pay-TV service provider portfolios in Asia Pacific, EMEA, Latin America, and North America (n = 233, 42 countries)
% of pay-TV operators in EMEA offering (change YoY, on a like-for-like basis)
46%
31%
8%
53%
36%
25%
Third-party apps Standalone OTT 4K video
2016
2017

6. 5
Pay-TV providers in EMEA are well advanced in rolling out
advanced set-top boxes, ahead of the global average
Key trends and developments
% of pay-TV operators offering (March 2017):
Source: MTM analysis of pay-TV service provider portfolios in Asia Pacific, EMEA, Latin America, and North America (n = 233, 42 countries)
84%
82%
44%
19%
21%
7%
3%
92%
93%
52%
25%
24%
5%
3%
100%
100%
80%
55%
30%
15%
0%
Global EMEA North America

7. 6
Almost all European pay-TV providers offer TV Everywhere
services – but other categories are less well developed
Key trends and developments
% of pay-TV operators offering (March 2017):
Source: MTM analysis of pay-TV service provider portfolios in Asia Pacific, EMEA, Latin America, and North America (n = 233, 42 countries)
83%
30%
3%
92%
35%
5%
100%
30%
5%
TV Everywhere Standalone OTT App-based pay-TV
Global EMEA North America

8. 7
Adjacencies continue to be addressed by a limited number
of European pay-TV providers
Key trends and developments
% of pay-TV operators offering (March 2017):
Source: MTM analysis of pay-TV service provider portfolios in Asia Pacific, EMEA, Latin America, and North America (n = 233, 42 countries)
22%
16%
11%
8%
4%
16%
12%
9%
5%
1%
65%
45%
45%
45%
25%
Adjacent
services
Home
security
Home
automation
Advertising
and data
services
Content
and
technology
services
Global EMEA North America
Internet of Things / Smart Home Business-to-business