Sky goes OTT: Best of both worlds. veed snapshot
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1 Sky goes OTT: Best of both worlds veed snapshot October 2014
2 Sky combines the linear and on demand world in one OTT service to prevent cannibalization from pure OTT players. Strategic Rationale Netflix just entered the German market and positions itself as a potential alternative to traditional pay TV services; in the face of this challenge you better cannibalize yourself than being cannibalized The Sky Online offering is priced in the overall midfield of the broader pay TV market, with a higher price than SVoD services such as Netflix and Maxdome, but a lower price point than the traditional linear Sky offering Sky Deutschland already gained lots of experience and insights with Sky Go and snap by Sky Sky Online already hints at potential synergies within Sky Europe: With NowTV, BSkyB already launched a comparable service more than a year ago, and Sky Italia launched Sky Online some months ago source: veed analytics Offering Details Proposition: Get the best of both worlds: Current high quality content as a linear stream and on demand, wherever you are Packaging: Sky Online offers two packages that can be booked independently on a monthly basis (Sky Serien/ 9,99 and Sky Film/ 19,99 ), and a sports day pass that can be booked as an add on (Sky Supersport Tagesticket/ 19,99 ) Content: Sky Serien covers 9 linear SD channels, offers many of these contents on demand and also includes snap; Sky Film covers 3 linear SD channels and offers many of these contents on demand; and the Sky Supersport Tagesticket covers the channels Sky Sport, Sky Bundesliga and Sky Austria Devices: Currently limited to browser based access and ios apps, further devices and a branded Roku streaming client are announced snapshot Sky Online 1
3 Sky portfolio: With Sky Online, Sky adds a further component to its already complex product portfolio. Sky traditional bundle Sky Online bundle Independent from bundles Sky Sky Anytime Sky Select Sky Go snap Sky Online snap snap Product Positioning Sky s foundation: Access to high-end pay TV content for DTH, cable and IPTV customers The on box on demand platform for access to current content Near on demand contents via linear channels and full on demand content via Sky Anytime OTT platform for live streaming for very few selected channels (sports!) and on demand shows OTT platform offering high-end library on demand content such as classic HBO shows OTT live streaming of movies, show and sports channels, as well as current on demand content OTT platform offering high-end library on demand content such as classic HBO shows OTT platform offering high-end library on demand content such as classic HBO shows Content Type Availability Linear On Demand On Box OTT snap is the only product that is available in both bundles and independently source: veed analytics snapshot Sky Online 2
4 Best of both worlds: Sky Online offers current on demand content as well as high-end pay TV channels. On Demand World! Sky leverages its vast rights portfolio of current assets and has a particularly strong offering in the current movies category! 54% of the 2013 top 100 box office hits are available at Sky Online, a content category usually not available at SVoD services and no other SVoD service offers more than 10%! Focusing on TV shows, Sky Online offers current seasons of hit shows such as Game of Thrones, Boardwalk Empire or The Walking Dead! Only limited binge viewing is possible. Often customers only get the current seasons; e.g., for Game of Thrones only season 4 is available, for Boardwalk Empire only the seasons 3, 4 and 5 and for The Walking Dead only the seasons 3, 4 and 5! snap is not seamlessly integrated in the Sky Online offering; e.g., snap offers the first season of Game of Thrones, but from the Sky Online GoT landing page no link to the snap GoT landing page exists Linear World! Sky offers 12 selected pay TV channels (not including the sports channels) available for live streaming! The 9 channels offered in the starter package cover some high-end channels such as Fox, TNT Serie and TNT Glitz! In the Sky Film package, Sky offers only three channels; these are the two top Sky channels Sky Cinema and Sky Atlantic, as well as Disney Cinemagic! Therefore, the label Sky Film is potentially confusing for the customer as Sky Atlantic covers mainly current HBO shows available on Sky! Compared to the leading OTT linear TV services Zattoo and Magine Sky Online is a complementary offering, with Zattoo and Magine mainly addressing the need for flexible access to FTA channels source: veed analytics snapshot Sky Online 3
5 SVoD competition: Sky Online leverages its rights portfolio and outperforms its competitors in current movies. Movies Catalogues Highlight: Of the Top 100 movies from 2013, 54% are available at Sky Online Attractiveness Share of veed Current 400 movies available 15% 13% 9% 10% 16% Quality Share of IMdB top 100 movies available 25% 39% 12% 13% 0% TV Shows Catalogue Attractiveness Share of veed Current 100 shows available 42% 25% 25% 30% 7% Quality Share of IMdB top 100 shows available 8% 16% 7% 15% 10% veed Current lists: top movies/ TV shows by sales (box office 10-13/ DVD Aug 14) IMdB all-time lists: top movies/ TV shows by IMdB rating source: veed analytics/ content catalogues as of September (Sky Online October) snapshot Sky Online 4
6 Linear OTT competition: linear channels offered by Sky Online are complementary to Magine and Zattoo. Package Price per Month Channels (HD+SD) Channels (HD) Selected Highlights Sky Starter 9,99 EUR 9 channels - TNT Serie, TNT Glitz, Fox, Nat Geo Sky Film 19,99 EUR 3 channels - Sky Cinema, Sky Atlantic Sky Supersport Tagesticket (Sky Starter or Film required) 19,99 EUR (per 24h) 5 channels (+ optional channels such as Sky Sport 3) Free 0,00 EUR 29 channels 2 channels - Sky Bundesliga channels Full coverage of public broadcasters and selected smaller private channels Master (without Free) 6,99 EUR 28 channels 8 channels Coverage of P7S1 and RTL group Magic (without Free, incl. Master) 16,99 EUR 43 channels 8 channels TNT Film, Universal Channel, Sony Television Max (without Free, incl. Master, Magic) 23,99 EUR 55 channels 12 channels Duck TV, yfe, DocuBox Free 0,00 EUR 57 channels - Full coverage of public broadcasters and selected smaller private channels Zattoo HiQ (without Free) Zattoo Plus (without Free, HiQ) 9,99 EUR 34 channels 22 channels Coverage of P7S1 and RTL group 9,90 EUR 12 channels - Planet, yfe, Fuel TV Zattoo International 2,90-12,90 EUR per package 20 channels - Various international channels source: veed analytics snapshot Sky Online 5
7 Bottom line: What Sky Online means for the other market participants. SVoD Services Traditional television strikes back and it will be a challenge for you to match their portfolio of current movies and shows anytime soon. TVoD Services Be careful: Sky Online is a way more powerful competitor regarding current movies and shows than the SVoDs. Pay TV Services Observe closely, and start to prepare your next step - otherwise you will be left behind. TV Operators Sky Online complements the offering Zattoo and Magine introduced and enriches it with on demand content, so prepare yourself! Broadcasters Watch from the sideline what happens to the market here and make your conclusions for your distribution strategy. Content Owners With Sky Online, a strong PayTV player further enlarges its reach cooperate closely and learn with them about changing consumption patterns and business rules source: veed analytics snapshot Sky Online 6
8 Outlook: Sky just opened up a plethora of possibilities with Sky Online now the customer acceptance is the challenge! Opportunities of Sky Online + Sky is opening up for a new customer group that is not willing to lock-in for a long-term membership, but has a high willingness to pay + Sky Online outperforms SVoD competitors in the category of current movies; for this content the Sky Online subscription even competes with TVoD services + Sky is reducing their dependency from classic distribution channels enlarging the flexibility to evolve their portfolio + Sky Online enables Sky to learn more about the changing consumer behavior (in GER, UK and I) and be at least one step ahead of the competition Challenges for Sky Online - The cannibalization challenge is to hit the fine line of minimizing churn from existing product to Sky Online while still attracting enough prospects - Sky Film and the day sports pass are priced rather high, and are likely not to gain huge attraction; these prices might be subject to change in the coming months - Sky just added a further brand to its already crowded portfolio, potentially leading to a further brand confusion among prospects and customers Keep updated for our VoD market model and forecast for Germany published later this year! If you would like to discuss the impact of the Sky Online launch on your business or the different market scenarios, please get in touch with: Bernd Riefler Chief Marketing Officer veed analytics bri@veed-analytics.com source: veed analytics snapshot Sky Online 7
9 The Sky Online Launch Walkthrough Product Overview 8
10 Sky Online Walkthrough (1/4) Product Overview 9
11 Sky Online Walkthrough (2/4) Product Overview 10
12 Sky Online Walkthrough (3/4) Product Overview 11
13 Sky Online Walkthrough (4/4) Product Overview 12
14 Bernd Riefler Chief Marketing Officer veed analytics veed offers unique international video service analytics. As a customer you receive thorough reports, insights and analyst sessions in our experience center enabling you to maximize your business and to design outstanding video products. veed is a service by Mücke, Sturm & Company, one of the leading management consultancy firms in the German-speaking area for the digital transformation.
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