Experience from creating successful Pay TV platforms Michael Werner CEO DigitalTVpartner.

Experience from creating successful Pay TV platforms

Michael Werner CEO DigitalTVpartner

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My Background

■ Founder of several DVB-T pay tv operations within the European market and have contributed to a successful transition from analogue to digital TV in many countries during the last ten years.

99 05 06 07 08 09

Sweden

DTP Founders Exit 2004

Finland

DTP FoundersStill shareholders

Italy PortugalSpain DTP Founders still shareholders

Pioneers of European DVB-T pay services

Germany (in process)UK and other EU countries (to be developed)

10 11

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1928 – the first TV clip – a lot has happened in 79 years..

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Niche channels

MTV, TV8, Discovery

Broad band operators

Big 5

Search engines

Google, Yahoo

VOD

Web TV portals

Youtube, FejmTV

News sites

Newspapers

New consumer device

DVD, PVR, Xbox, MobileTV

More screen services than ever before and more to come….

Källa: Mediavision

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1992

22 channels

Kanal 1TV2 TV3TV 4TV 5 NordicBBC TV-Europe Childrens Channel CNN InternationalDR1dansk TV 2 DiscoveryEurosport FilmnetTV Finland Lifestyle MTV Europe NRKRTL Plus ScreensportSky NewsSuper ChannelTV 1000 Succé

2007

420 channels

SVT 1SVT 2 TV 3TV 4Kanal 5Adult ChannelAdventure OneAl-jazeeraAnimal PlanetAzadiBBC FoodBBC PrimeBBC WorldBloombergCanal+Canal+ blå Canal+ gulCanal+ zapCartoon networkCNBC, CNNDiscoveryDiscovery CivilisationDiscovery ScienceDiscovery Travel & Adventure Disney Channel

1980

2 channels

Kanal 1TV2

DR1 DR2E!E! Style, Euronews Extreme Fox Kids Fox NewsGod ChannelHallmarkHRT1Jaam-e-jaamMan U TVMBCMezzoMTV EuropéMTV2Music ChoiceNational GeoNickelodeonNRKORT1PinkPlayboy TVPrime TVPrivate Gold

Rai UnoSky NewsSVT BarnkanalenSVT24TCMThe History ChTravel channel TV ChileTV FinlandTV PoloniaTV1000TV1000 CinemaTV3+TV400TV4 PlusTV4 GuldTV4 KomediTV4 FaktaTV4

Sportexpressen

TV4 FilmTV5TV8TVEVH1VH1 Classic………………….

Number of TV channels on the Swedish market

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A Pay TV offer in Sweden 2007

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WCCO (CBS), KSTP (ABC), KTCA (PBS), KARE (NBC), Fox, KEYC (CBS)A&E, E!, Entertainment Television, Sci-Fi Channel, Telefutura, Este, BBC America, Encore, WAM / America's Kidz, SiTV, Telefutura Oeste, BET, FX, Soapnet, USA Network, Biography, Galavisión, Spike, TV Univisión, Este, Bravo, Game Show Network, Style, Univisión Oeste, CCTV-9, Lifetime, TBS, WGN Superstation, Comedy Central, Mun2, TNT, We: Women's Entertainment, Court TV, Reality TV, TV Guide Channel, Bloomberg Television, CNBC, Fox News Channel, MSNBC, C-Span, CNBC, World, G4techTV, NASA, C-Span2, CNN, Headline News, The Weather Channel, ABC Family, Disney Channel (West), Nickelodeon / Nick at Nite (West), TV Land, Boomerang, Hallmark Channel, Nickelodeon, Games & Sports, Toon, Disney, Cartoon Network, Nick Toons, Noggin, The N, Disney Channel (East), Nickelodeon / Nick at Night (East), PAX TV, American Movie Classics, Encore Mysteries, Independent Film Channel, Turner Classic Movies, Encore (West), Encore, True Stories, Lifetime, Movie Network, Encore, Action / Adventure, Encore Westerns, TMC, Xtra West, Encore Love Stories, Fox Movie Channel, The Movie Channel (West), Altitude, Sports & Entertainment, Fox Sports Net, Cincinnati Fox Sports Net, South Sports Alternate 2, Comcast Sports, Net Mid-Atlantic, Fox Sports Net Detroit, Fox Sports Net Southwest, Sports Alternate 3, ESPN, Fox Sports Net Florida, Fox Sports Net West, Sports Alternate 4, ESPN, Alternate Fox Sports Net Midwest, Fox Sports Net West 2, Sunshine Network, ESPN, Classic Fox Sports Net, New England Fox Sports Net, World TV, Games Network, ESPN2, Fox Sports Net New York, Gol TV, The Golf Channel, ESPN2 Alternate Fox Sports Net, North Horse Racing TV, The Outdoor Channel, ESPNews, Fox Sports Net Northwest, Madison Square Garden, The Speed Channel, Empire, Sports Fox Sports Net Ohio, NESN, Turner, South Fox Sports Net, Arizona Fox Sports Net, Pittsburgh Outdoor Life Network, Fox Sports Net Bay Area, Fox Sports Net Rocky Mtn, Sports Alternate 1, Animal Planet, Discovery, Times Channel, History Channel International, The Travel Channel, Discovery Channel, Discovery Wings, Home & Garden Television, Wisdom Television, Discovery Health, Do It Yourself Network, National Geographic Channel, Discovery Home & Leisure, Food Network, The Learning Channel, Discovery Kids, History Channel, The Science Channel, 7890 - 4 Decades of Music, Fuse, MTV2, Country Music Television, Great American Country, VH1, Dish Music - Classic Soul, MTV, VH1, Classic BYUTV, Good Samaritan Network, Panhandle Area Edu., University of Washington, Classic Arts, Showcase, HITN, RFDTV, Worldlink TV, Colours, TV Northern Arizona Univ, Research Channel, Free Speech TV, PBS, You, University of California, Angel One, Daystar, Eternal Word Television Network, Trinity Broadcasting Network, Auction TV, Home Shopping, Network, Shop NBC, Beauty & Fashion Channel, ISHOP, Shop at Home, Catalog TV, Men's Channel, Stuff TV, Healthy Living Channel, QVC TV, Outlet Mall

WCCO (CBS)KSTP (ABC)KTCA (PBS)KARE (NBC)KEYC (CBS)

…..and in USA 2007

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TV channelsTV channels TV platformTV platform

Broadcast NetworkBroadcast Network

Content Operator

RetailerRetailerDevicesDevices

Sales of devices/ CA-Cards

Steakholders in a Pay TV platform

MNO’sMNO’s

MNO’sMNO’s

CustomerCustomer

Broadcasting

MarketingSubscriber mgmtCustomer supportInvoicing

WholesaleAgreement

Content agreement

Networkagreemen

t

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It is no doubt, the most critical successful factor is to have the leading National Broadcasters support!

They usually share up to 80% all viewing time in any market!

Without their support will we not enter any market!

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TV4 28,2

SVT1 26,5

TV4 22,2

Sh

are

of

view

ing

%

SVT2Satellite and others

But all national broadcasters are losing marketshares during the digitalization!

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TV4 developed a very successful strategy!

TV4 Sverige tv4.se

TV4 text-tv

Allt omStockholm

2002

Licensingand

publishing

”Med i tv”

TV400

Tv4 Guld

TV4 Sverige tv4.se

Tv4 Film TV4 text-tv

TV4 Komedi

Tv4 Sport

2008

TV4 mobile

TV4 Fakta

TV4 Plus

More ”planets”1990

The 4 S • Samarbete/Cooperation• Samordning/Coordination• Solsystemet/ the Solar system• Samarbetspartners/Joint partners

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TV4 Group

TV4:s new channels

TV4 National

Share of Viewing of the TV4 Group (all 12-59 years), Estimates from April 2007

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Broadcasters position

■ New channels as complement– Using synergies in cross-promotion,

content rights and brand use■ New distribution as complement

– mobile phone – Internet

■ Pay TV revenue model as complement– in digital TV (incl. DTT, satellite and cable)– In new distribution

The new digital market demands new broadcaster strategies

■ To keep market share in the new fragmentizised market

■ To find alternative revenue streams when advertising revenues fall, due to recession and fragmentization of media consumption

As the major national broadcasters have had a dominant position in the analogue TV world, the new digital market has meant new strategies to keep market position. New insight is that existing position can be moved forward by taking the right steps.

TV1

Digital

Analogue

Time

Sh

are

of

vie

we

rs

From a single channel strategy in the analogue world to a multi channel strategy in a digital world.

Experience from Swedish TV4 and other media groups show that revenue will grow and market position will strengthen when introducing new pay Channels in addition to existing Free-to-Air channel, using all possible synergies.

TV+

TVX TV

Y

TVZ

TV#

TVS

TV1

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Conclusions and recommendations to Mobil TV operators

Focus on existing TV channels and wait with the special programming for mobility !

• Take the advantage of existing viewer behavior

• Avoid create new needs and teach consumers a new viewing concept

• TV viewing is something very much mature and changes requires time and lots of money

• TV mobile doesn’t mean people watching TV while “moving” but in a mobile environment

Simplicity for the consumer is key: New formats, interactivity, VOD can come at a further stage

Key success factors

Groups of interest can be of any kind in a wide are of range: Youth/Kids, Entertainment, News and women/man oriented channels can be of interest for a mass market audience.

• “good quality-low cost” Pay TV Basic package is key in order to have a wide acceptance from the market. Premium content will also be relevant in the area of sports and adults.

•FTA broadcasters key for driving the audience and “moving goods”.

•FTA broadcasters see TV mobile environment as a new revenue stream driven by access fee revenues-

• FTA channels are for free in DVB-T mobile. DVB-H mobile is a further step on the DVB-T experience considering FTA & Pay but also better technology and user experience (i.e. indoor , battery, encryption-pay)

Packaging content FTA broadcasters

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