Pay TV Everywhere & OTT aggregation in the Americas

Transcription

1 Pay TV Everywhere & OTT aggregation in the Americas Juan Pablo Conti Business Development Manager Americas

2 About Dataxis Headquartered in Paris, France. Founded in Specialized in market intelligence on the TV, telecom and entertainment markets. Offices in Berlin, Buenos Aires and Mauritius Global leader in market intelligence in emerging regions: #3 in Europe #2 in North America #1 in Latin America #1 in Africa & Middle East #2 in Asia Some of our market intelligence clients: America Movil Group, Millicom Group, Liberty Global (UPC), Cablevision Argentina, Totalplay, ICE, Telecom Argentina, Multichoice, France Telecom, Turner Latin America, ESPN Latin America, HBO Latin America, Telesur, NHK, France 24, Viacom Latin America, Sony Electronics Latin America, BBC Latin America, Arris, Technicolor, Ericsson, Humax, Viaccess, Verimatrix, Irdeto, Nagra, Intelsat, SES, Hispasat & others Leading global series of conferences about the future of the TV industry: NexTV Series: Buenos Aires, Sao Paulo, Bogota, Mexico, Berlin NexTV CEO: Latin America (Miami), Africa (Mauritius) NexTV News portals: nextvlatam.com; nextvbrasil.com, nextvafrica.com 2

3 What is OTT and what is TV Everywhere? Online DVD rental firm Netflix launched its streaming service in 2007, inaugurating the OTT SVOD category As a reaction to the new business threat, Time Warner Cable launched the TV Everywhere initiative in Comcast, Turner & ESPN came onboard later that year. Over-the-top SVOD TV Everywhere Concept Bypasses legacy pay-tv network operators Service provider Third party independent from the legacy Legacy operator or third party in operator partnership with it Devices Available in multiple screens Available in multiple screens Billing and charging Direct to the client or through an independent aggregator, bypassing TV subscription fees Included in the regular pay-tv subscription fee (either as basic or premium service) Distribution Internet Internet It s part of a service offered by legacy pay-tv network operators 3

4 Pay-TV vs BB vs OTT in the United States Evolution of pay-tv, broadband and paid OTT SVOD accounts (in millions) % pay-tv penetration in Pay TV BB OTT Source: Dataxis 4

5 OTT SVOD HHs in the United States Evolution of pay-tv and OTT SVOD HHs (in millions) % SVOD OTT penetration in Pay TV OTT HH OTT HH shared Source: Dataxis 5

6 Pay-TV vs BB vs OTT SVOD in Latin America Evolution of pay-tv, broadband and paid OTT SVOD accounts (in millions) % pay-tv penetration in Pay TV 2009 BB OTT Source: Dataxis 6

7 Broadband speeds going up Average Internet connection speeds in Mbps Q Q USA France Australia Germany Uruguay Mexico Argentina Chile Brazil Colombia Ecuador Average broadband speed across Latin America keeps growing; already matches USA 2012 levels Still, the average broadband speed in the USA today more than doubles averages seen in the leading Latam markets, Chile & Uruguay Source: Akamai 7

8 TVE from TV network groups in Latin America TV network TV Everywhere TV network TV Everywhere TyC Sports TyC Sports Play Disney ESPN Play A&E A&E Play, History Play, Lifetime Play Turner Space Go, TNT Go, Cartoon Network Go Viacom MTV Play, Nickelodeon Play, Comedy Central Play NBC Universal E! Now Latino, SyFy Play, Universal Channel Play HBO HBO Go, Cinemax Go Sony Networks Sony Play, AXN Play Claxson HotGo Discovery Discovery Kids Play Fox Fox Play Globo Globosat Play Band Band Spots Online MediaPro F1 Latinoamérica TVE Golf Channel Golf Channel TV Online GolTV GolTV Play Taking into account the 9 main markets in Latin America, there were 3 TVE platforms in 2011, which doubled to 6 in During the following years, this number grew to 8 (2013), 14 (2014), 25 (2015) and 34 (2016), according to the Dataxis s TV Everywhere tracker. HBO recently announced that it is launching its HBO Go platform as a standalone service (OTT) across Latin America. Other TV network groups are preparing similar offers. Fox Play has launched its premium OTT service in Mexico and Brazil 8

9 Penetration of TVE from TV networks Number of potential TVE users/pay-tv universe (% as of Q2 2016, top-9 Latam markets) Fox Play ESPN Play TNT Go Space Go Universal Play Sony Play Cartoon Network Go Nickelodeon Play MTV Play Cinemax Go E! Now AXN Play Comedy Central Play SyFy Play Source: Dataxis 9

10 TVE as an OTT bundle First-wave defense strategy: TVE bundle Free bundle of TVE platforms developed by the TV networks Strategy for cord cutters: skinny bundles Internet access bundle, offering selected TVE platforms: HBO Now Second-wave defense strategy: OTT add-on OTTs aggregation to Play services or STB (with or without billing and charging) Full-on strategy: linear pay-tv service via OTT Pay-TV service becomes an app in a connected device 10

11 Competition in OTT aggregation First-wave defense strategy: TVE bundle Free bundle of TVE platforms developed by the TV networks Streaming devices Roku, Chromecast, Sling TV, Amazon Fire, Apple TV Smart TVs Samsung, LG, Sony, Panasonic, etc Strategy for cord cutters: skinny bundles Internet access bundle, offering selected TVE platforms: HBO Now Second-wave defense strategy: OTT add-on OTTs aggregation to Play services or STB (with or without billing and charging) Operators Full-on strategy: linear pay-tv service via OTT Pay-TV service becomes an app in a connected device Gaming consoles Pay-TV networks, wireless carriers, ISPs PlayStation VUE, Xbox 11

12 Competition in OTT aggregation 12

13 Netflix via Comcast Netflix app as featured in the X1 STB, with billing through Comcast 13

14 Blim & Crackle via Grupo TV Cable Crackle is integrated by: Totalplay, Axtel (Mexico), Tigo (Costa Rica, Guatemala), TV Cable (Ecuador), TCC (Uruguay) Gigared (Argentina), Oi, TVN, Cabo Telecom, EnterPlay, Brisanet, TV Alphaville, BVCi, Sumicity, Conecta, Compuservice, Life (Brazil) Blim is integrated by Izzi, Movistar (Mexico), Grupo TV Cable (Ecuador) 14

15 Niches & verticalization of the OTT offer OTT SVOD market share in Argentina, Q % of total paid accounts Source: Dataxis 15

16 Niches & verticalization of the OTT offer OTT SVOD market share in Brazil, Q % of total paid accounts Source: Dataxis 16

17 Niches & verticalization of the OTT offer OTT SVOD market share in Mexico, Q % of total paid accounts Source: Dataxis 17

18 First-generation TV Everywhere New-generation pay-tv Everywhere Access authentication to TVE platforms created by TV networks Internet VOD + content aggregation NSNow, Vivo Play, Movistar Play, Sky Online, Megacable Play, CNT Play, Dish Movil, Izzi Go, Claro Colombia, DirecTV Play of TVE platforms created by TV networks Hybrid STB for TV set access Second-generation TV Everywhere ESPN Play, Fox Play, HBO Go, TNT Go, Space Go, Sony Play, History Play, E! Now, Hot Go, Cartoon Network Go, etc. OTT aggregation Linear OTT service with catch-up and retro EPG functionality Cablevision Flow, TCC Vivo, Izzi.tv, Megacable XView Skinny bundles via ISPs: AT&T, Telmex Bundle with pay-tv TVE: Tigo, Altice, TV Cable Ecuador Middleware add-on: Totalplay, Xfinity, TCC, Ziggo (with or without billing and charging) As TVE: Cablevision Flow, Net Now, Megacable Xview, Ziggo (with or without inside/outside home rule) As OTT pay-tv: DirecTV Now, XFINITY Stream TV, Sling TV 18

19 OTT pay TV in the United States OTT pay-tv market share in the USA, Q Total: 2.4 M subs DirecTV Now (AT&T) Evolution of pay-tv & OTT pay-tv subscribers (in millions) 110 XFINITY Stream TV PlayStation Layer3 TV (Comcast) Vue (Sony) 5.5% 13.5% % Rabbit TV Plus 2.3% 13.7% Others<1% 90 Sling TV (Dish) % Others: FilmOn TV: 0.30% i-on TV: 0.20% YipTV: 0.10% Pay TV OTT Pay TV Source: Dataxis 19

20 A new pay-tv era: challenges Growth in broadband penetration levels and average connection speeds has brought about a secondgeneration of TV Everywhere services. They feature the integration of TVE platforms developed by the TV networks, Internet-delivered VOD service, the commercial aggregation of OTT SVOD platforms and the addition of linear TV channels with catch-up & retro EPG functionality Even though Latin America lags far behind the United States in terms of broadband infrastructure deployment, it faces the same competitive pressure from OTTs and the same changes in pay-tv consumption patterns The biggest limitation for the development of this new pay-tv model is not technological. It is the lack of rights that TV networks have over their products when it comes to granting TV rights to the operators Second-generation TV Everywhere services herald the start of a profound transformation of the pay-tv business, which could pave the way for new network-less entrants under the OTT pay-tv model that is gaining traction worldwide 20

21 Questions? Juan Pablo Conti Business Development Manager Americas