TV strategy for cable operators
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1 TV strategy for cable operators TV retakes center stage Henning Röper Budapest, 23 September 2010
2 Lots of TV product innovation is happening outside cable Telco IPTV Really integrated two way TV products Linear TV, VoD and PVR with one content search and discovery system Innovative applications Integration of Web TV Access TV Set manufacturers Net 36% of TV sets sold in Germany in 1HY 10 were connected TV TV CE peripherals Bluray Players Registered accounts as of July 10: XBOX live: >25m Playstation network: >50m IT Gorillas Apple : Combining Hardware and itunes library Google TV: Better content search and discovery for linear TV and VoD agnostic towards signal source, Sony Intel Logitech cooperation Content packagers Netflix : Migrating DVD per mail subscriptions to VoD Hulu : Offering TV series on demand aggregating across broadcasters Sky play : Integrating VoD into DTH platform and expanding to out of home, Xbox cooperation Hybrid TV consortiums HbbTV: Pushed by Astra, CE manufacturers and broadcasters in Germany and France : (Canvas) Pushed by BBC, ITV, C4, BT and TT in UK Combining linear free TV from DTT and FreeSat offers with VoD and interactive applications Page 2
3 Example Germany: Telco incumbent offers best TV product and is determined to take lead in pay TV, cable not superior to DTH Deutsche Telekom IPTV Cable DTH HD (3D planned) Largest VoD movie library (> 7000 titles) Most innovative soccer product (e.g. select favourite games for conference show) Fully integrated PVR and managed EPG Integration of Applications Only Sky channels missing DTAG target: Become strongest Pay TV platform in German market with 2.5-3m subs by end of 2012 Vodafone will launch competing product based on hybrid approach During last years strong focus on broadband roll-out >80% of homes passed on upgraded networks Broadband penetration increased from 3% in 2006 to 13% today TV product fell behind IPTV No focus on Pay TV (Sky as independent offer on cable infrastructure) Slow HD offering No substantial VoD offering No integration of broadband and TV product Largest available free TV offer Astra pushes broadcasters and STB manufacturers to go hybrid with HbbTV Astra offers low threshold DTH pay TV platform to allow HD subscription (and other pay offers) Sky with limited success to penetrate market (10% of digital DTH homes as subscribers) Page 3
4 Do the virtual litmus test for your TV offering: Is your product competitive? Your cable TV offering The best available integration of linear free TV (DTT, DTH, basic cable) with OTT VoD offers by broadcasters and VoD movie libraries in your market Your broadband access product used for OTT Video (at the speed you offer) The best IPTV product in your market (delivered OTT over your network to your customers) Is your offer the best TV experience available in your market? Or would other combinations be more attractive and you just benefit from bundling your offer? Then aggressive OTT offers from competitors could change the game Page 4
5 What cable should do Refocus on TV product Try to offer the best TV product in your market: Content offer, content accessibility, intuitive navigation, technical quality Do not allow Telcos to eat your lunch by pushing superior IPTV products Integrate TV and online access Migrate from a product bundle into a combined TV product Linear TV, your VoD offer, third party VoD offers (all through your billing and under your brand umbrella) User interface to navigate through the wealth of content Do not allow TV set and other hardware manufacturers to eat your lunch by integrating your broadband and TV offering into networked TV and establishing competing subscriber relationships Offer your own product OTT Expand the user experience to mobile and out of home usage (Fancast by Comcast) Evaluate if you could also expand the footprint of your offering beyond your own network (perhaps only for VoD as a first step) Page 5
6 Solon Management Consulting GmbH & Co. KG Munich Kardinal-Faulhaber-Straße Budapest Andrássy út London 12a Savile Row Page 6
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