2007 11 16 iptv europe and asia v1.3
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Overview of IPTV deployments and packages in Europe and AsiaTRANSCRIPT
IPTVReality Check Europe and Asia
The Americas Executive Institute 2007
Lars BodenheimerVP Technology & Network Engineering
Detecon, Inc.
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IPTV Evolution
“[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
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.]
IPTV will evolve from a pure IP based TV service to a multimedia, multiplatform
and multitask based “Next Generation TV”
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IPTV Platform
A carrier that provides 1G/2G IPTV services will implement, integrated, or
otherwise realize one or more of the building blocks below
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IPTV is seeing constant growth all over the world, but Europe is expected to keep
its leading position for the next few years
IPTV - who is leading, who is following?
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IPTV - deployments worldwide
A mix of incumbent and local players determine the current IPTV service
provider landscape
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IPTV – different regional drivers and inhibitors
16 Point-Text
Western Europe
� Free-TV
� High usage
� Early start
� Often weak cable operators
� Killer content Soccer
Asia
� Largest populations
� Islands of the highest broadband penetration levels
� Ocean of poor network infrastructure
Latin America
� IPTV barely laid out yet due to high regulatory hurdles
� Telcos have better land line coverage than cable providers
USA
� Pay TV
� High ARPU, high usage
� Cable operators’ 3Play
� “I love my TiVO!”
� TV is plural
The situation differs significantly from continent to continent as well as
sometimes country to country
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IPTV is facing strong competition especially by Terrestrial Television in Europe
but is gaining more momentum
IPTV in Western Europe
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2004 2005 2006 2007
Terrestrial Television Satellite Subscribers CATV Subscribers
IPTV Subscribers Total Broadband Subscribers
TV watchers and broadband subscribers in France, Germany, Italy and Spain (2004 – 2007, million households)Source: InfoCom 2007
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IPTV in Western Europe
Source: Detecon Research, Company Websites, Ovum 2007, Screen Digest 2007
While FastWeb and Orange.TV represent the biggest, earliest and most innovative
IPTV markets, DT faces a substantially more difficult task
Offer
Channels
Key Features
Technology
Price
Marketshare
FastWebTV + (1x, 2x, 4x)Triple-Play
All national channels, VoD, Soccer on PPV basis
Recommendation SystemInternet by TV HD, VoD, PVR
DSL, FTTH/FTTOIPTV Platform self developed
20 € (single)65 € (Triple-Play)
72.2%(1 million + BB subs)
FastWeb
Triple Play
All DTT Channels, Very good Pay-TV and VoD Offer
HDTV and VoD Content optimized for Cell and PC
ADSL 2+, FTTHPlatform mainly Thomson
29,95 € (8 MBit)Plenty of extra fees
~ 50 %
Orange.TV
Triple-Play
70 (100) TV Channels + VoD + Soccer Option
HD, Timeshifted TV, DVR, TV Archiv, Printed TV Guide
Microsoft TVVDSL2
59,95 € Basic74,95 € Plus
N/A
T-Home
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� IPTV Launch 2003 (1st)
� 230,000 IPTV subscribers (21% of its broadband customers, one of the highest rates worldwide)
� World leader in terms of IPTV ARPU contribution to broadband revenue (Residential ARPU is EUR 61)
� Strong innovator
� Worlds first Triple Play provider (2003)
� Simple pricing system
� FastWebTV (IPTV Only Service)
� Successful local and child-content
� 400.000 IPTV subscribers as of June 2007
� Household penetration: 5%(2010: 13%)
� Fairly limited terrestrial TV service (switch off in 2008)
� No cable operators
� Goverment subsidised set-top boxes for DTT
� Triple-Play popularity restricted
Italy
Italy / FastWeb
After its start FastWeb became the leading reference worldwide for how to create
and build IPTV services
FastWeb
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ContentWise represents the next step for IPTV. From building up and expanding
the IPTV portfolio, to leveraging and streamlining what there is
ContentWise Recommendation System (Italy)
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� 2.55 m IPTV subscribers as of June 2007 (2010: 3,4m)
� Household penetration: 13.7%
� Weak cable coverage of 30% and high willingness to pay for TV
� Two satellite players, open to IPTV as a delivery channel (now merged though)
� Strong emphasis on locally-produced content.
� Analog TT to be switched off in 2012
France
� Launched in 2004 (1st)
� 0.975 m subscribers (Q3 2007)
� Adopted Price, content and features due to strong competition
� Premium content packages incorporating TPS and Canal+ Pay-TV programs
� Flexible service options
� Technique support better than competitors
� Agreements to offer an exclusive variety of channels
Orange.TV
France / Orange (France Telecom)
France is the biggest and one of the most competitive IPTV markets worldwide
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� 218,000 IPTV subscribers as of June 2007 (2010: 3,195M)
� Household penetration: 1%(2010: 8%)
� Highest avaiability of FreeTV in EU and low priced, widely available CATV (->regulation)
� Price is key Factor
� Little interest in features
� Unawareness of VoD and personalized programming guide
� Analog TT to be switched off in 2011
Germany
� Launched Q4 2006 (2nd)
� Number of subscribers: N/A believed to be less than 100,000
� IPTV coverage: 15M HH
� Goal of 1M Triple-Play customers end 2007 had to be reduced to 100k–200k (2010: 1.5M)
� Weak performance addressed with
� 25% price cut
� New features
� Bundesliga special
� Technical and regulatory Problems
T-Home
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
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IPTV in Asia
Source: Detecon Research, Company Websites, Ovum 2007
The situation for IPTV differs greatly among Asian countries. Where the worlds
highest broadband penetrations border regions of poor network infrastructure
Offer
Channels
Key Features
Technology
Price
Marketshare
Triple Play (Qadruple)Now TV (independent)
131 channels (50 exlusive)
Program „a la carte“TV + VAS
ADSL+, FTTHSelf developed
Free+ price by extra channel
70 %(49 % among all TV offers)
PCCW
Triple Play
SMG Channels5600h VoD
PVR, 48h Timeshift TV
ADSL, FTTNUTStarcom, ZTE
60yuan ($7.42)(Shanghai)
~ 55% (Estimate)
China Telecom
Triple-Pay(Quadruple future)
36+ Channels, or 1000 VoD titles
Video GamingTV-Base Service
ADSL, (FTTH)UTStarcom
33 $ Basic+ Extra Services
N/A
Yahoo!BB
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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
World biggest Provider
� 878,000 IPTV subscribers (End 2006)
� IPTV Household penetration 39.3% at the end of 2006
� Over 1.74 M broadband households (78% penetration rate)
� Broadcasting Bill in 2000
� Only few Free-TV channels
� Intense broadband competition
� High population density
� Hong Kong is the only market with IPTV ARPUs above those of cable and satellite Pay-TV market leader
Hong Kong
� Launched 09/2003
� 758,000 subscribers (End 2006)
� ARPU: $21
� Initial setbacks
� Free IPTV channels included in every broadband subscription
� World leading InnovatorSplit-screen: Soccer + VAS
� “a la carte” subscription model
� IPTV drives PCCWs wirelinebusiness
� Offers IPTV consulting now
PCCW - Now TV
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� ~ 500,000 IPTV subscribers (estimated)
� Broadband penetration: 13%
� Beijing Olympic Games 2008
� Content is heavily regulated
� Hughe market, little infrastructure and buying power
� Cable TV ARPU is low at Rmb15-20 (US$1.8-2.4) for access to over 50 channels
� Regulatory obstacles for IPTV
� Roughly 2200 cable TV operators
China
� Launched 05/2005
� 221,000 IPTV subscribers by the end of 2006, predominantly in Shanghai
� Initial start with a 5000 user IPTV network, which had a capacity of 100,000 concurrent media streams
� Shanghai followed supporting 100,000 customers (today 7 deployments)
� Emphasis on basic features like Live TV, VoD and timeshift PVR
� Partnered with Shanghai Media Group for content
China Telecom
China / China Telecom
Different go-to-market approach necessary, unique market, regulatory poorness
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� 1M estimated IPTV subscribers
� Broadband penetration: 52%
� One of the worlds best developed broadband infrastructure
� Low broadband prices
� End 2006 Japan had 26.7 M broadband customers (30% FTTH)
� High interest in new techniques
� Despite this overall Pay-TV channels are underperforming (Sattelite, Cable)
Japan
� Launched Q2 2003 (2nd)
� Number of subscribers: N/A
� Most innovative Player on the japanes market
� Flexible pricing, 36 TV Channels or 1000 VoD titles per month to choose from + „a la carte“
� G-Cluster (Gaming)
� TV-Base Service
� Quardrupel-Play (all these services shall come to handsets)
BB.TV
Japan / Yahoo!BB
Although great technological potential and innovation affine people, Japanese
show surprisingly little interest in IPTV so far
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Offices in Germany:Bonn (HQ), Dresden, Eschborn, Munich
International locations:
Abu Dhabi, Bangkok, Johannesburg, Mexico City, Beijing, Reston, Riyadh, San Mateo, Singapore, Zurich
Foundation:
1954 Diebold
1977 DETECON
Turnover 2006:
EUR 148 million
650 consultants
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.
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Research Methodology
Secondary Research
� Technology reports
� Market, industry and competition analyses
� Company and country specific information
� Analysts‘ reports
Primary Research
� 650 consultants
� >3200 projects
� 120 countries
� Strategic workshops
� Users Clinic
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.
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.
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Think forward
Your contact:
Lars Bodenheimer
Vice PresidentTechnology & Network Engineering
Detecon, Inc.12007 Sunrise Valley Drive, Suite 105
Reston, VA 20191 USA(703) 480-0812 Phone