Multiscreen & OTT. Few words about Vipnet. > Launch of commercial operations July 1999
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1 Multiscreen & OTT Few words about Vipnet Launch of commercial operations July 1999 The leading innovator on the Croatian telecommunications market Owner of B.net, the largest Croatian cable operator (from August, 2011) Part of Telekom Austria Group 2 1
2 Vision We are customer s first choice in communication! Mission We enrich peoples lives by delivering outstanding multiscreen customer experience and enabling them to communicate anywhere, anytime 3 Str Dodatni elementi i 5 Stages of Pay TV Analog TV Show and get paid Digital TV Channel differentiation - broad portfolio of 'special interest' content to serve different niches Visual resolution Rise of HD Dedicated HD channels especially on priority genres (sports, movies etc.) Interactivity VOD & time shift functionalities Changing customers habits TV meets BB Anytime, anywhere Content rights alignment, attempt to follow the customer across all devices 4 2
3 Most successful operators offer services on multiple access platforms DTH, cable/iptv and OTT. Each is one more way to reach subscribers CABLE TV IPTV SATELLITE TV OVER THE TOP Ultimate path - Developing 360-Degrees solutions with same UE 5 Bnet & Vipnet OTT service Bnet B.net OTT launched promo period commercial launch of OTT service for ios and Android Vipnet May commercial launch for Android 6 3
4 7 Changes in Customer Behavior 8 4
5 Mobility and Content Usage by hour across the day by device - for 28 July to 9 Aug 2012 During Olympic games PC usage maxes out during the week at lunchtime and during mid-afternoon peak Team GB moments Mobile takes over around 6pm as people leave the office but still want to keep up to date with the latest action Source: Tablet usage reaches a peak at around 9pm: people using them as a second screen experience as they watch the Games on their TVs, and also as they continue to watch in bed 9 Change of behavior while watching TV While watching TV, consumers now immediately express thougths online via social networks The opportunity for networks and advertisers is huge; they can not only provide relevant, interesting content that keeps viewers engaged, but also grow relationships that are driven by the consumers stated needs, wants, and interests 10 5
6 Customer Needs Multi-Screen - Tehnology is there, how to monetize is question Most of broadcasting is in living room' 20% of people with a mobile use it to watch tv content away from home whey we get to screens changes and with it consumption is different While sitting in front of TV, more than 60% of us have 2nd screen in our hands, whether a smartphone, tablet or PC/laptop Number of screens per person in years: 2000 = = = New threats - OTT Players vs. Cable / Telco Operators FACT Global and local OTT operators are here to stay and grow They came with latest technology and immediately on multiple screens/ devices QUESTION How to avoid becoming pipe provider? Is the same threat for incumbent pay TV providers (cable providers) and for new coming pay TV providers Telco's? What are telecoms advantages Vs. OTT players SOLUTION Is there one? Is multiscreen enough? What is the right path? 12 6
7 Multiscreen is mandatory offer for modern user OTT is seen as complementary service Multiscreen TV apps If you are a pay TV operator and not providing your service on tablets and phones, you will soon find yourself out of the game Tablets are becoming second TV screen Double use of OTT service on: - ios Android web available in Expand to multiscreen/ of existing users Pure OTT - could be used to non access line customers (mid term ability) Telecoms advantages Vs. OTT ( utilize customer relationship and protect customer base) Trusted relation 13 Customer service Connected home story Billing Ability to invest CPE at place Full commun. Offer (bundels) Issues to Face Usually small volumes are issue for business plans but in global OTT world this is opportunity duo to small local languages and importance local content Clearing content rights Generally size is a key factor in the any content game (including OTT), as only the biggest players on a local and/or global basis can maintain power in content negotiations over the long run right mixture of rights and partnership is right answer local is key for us! Mobile operators tariffs Solving good or flat tariffs with mobile operators (growing need for speeds, grow ARPU LTE options) WI-Fi strategy? Most of video is watched over WI-FI. Hot spots and offload strategy is needed Piracy/ legislation Free content is just one click away Legislation does not keep the pace with technical innovation OTT video services by unbundles provide pay TV a non-linear TV experience one of our strengths is exactly opposite - that bundle that gives everything to customer 14 7
8 Bring Commodity to your Customers ü ü ü It takes few things Develop own 360 solutions (cover all important platforms) Content is a king! How to fight big ones - local and localized content is important Partner with others (mainly local) and customize it to your platform to bring same look and field (HBO GO, OYO, ) Keep control over remote control! Bring it all to your customers and provide them same customer experience wherever they are and whichever device they want Remember -Today it is new sexy stuff but tomorrow is already here and this is standard commodity 15 Thank you 16 8
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