Managed Tv Vs Over The Top Video Nov 09 Idate

Managed TV Vs Over the top videoThe impact of connected TVs on the TV industryGilles Fontaine

IDATE

[email protected]

22

The background: the web migration

33

A third phase begins for the video industry

AccessTerminal = TV

Network as technical providerThe TV channel is the

gatekeeper

Digital managed networksMultichannels providers as

gatekeepers betweenTV channels and viewers

Network gatekeepers bypassed by Internet

services and challenged by device managers

UsageAll Live

CollectiveOn the TV set

Theme channels introduce educated viewers to off-live

On multiple TV sets

Any time & AnywherePersonal TV

Shared in my networkOn any terminal

Services Broadcast television Multichannel televisionCatch-up & VOD

Enriched TVVideo social networking

FundingTV channel subscriptionTV package subscription

TV Channels Public fundingTV channels advertising

Program advertisingProgram purchase

Key playersRightsholders

Broadcast TV channelsRightholders

Packagers/Network operators

RightholdersDevice manufacturers

Search engineSocial networks

Analog TV Digital TV Internet TV

44

4 key enablers for over the top video

Live TV channels- fixed networks Catch-up TV

Live TV channels - nomad & mobile On-demand Video - fixed networks

On-demand video - nomad & mobile

Breakdown of video related advertising in 2020Share of Internet only households

0

50

100

150

200

250

300

350

2008 2020

catch-up TV fixed live TV channels - fixed networks

live TV channels - nomad & mobile on-demand video - fixed networks

on-demand video - nomad & mobile

Time spent watching video in France 2008-2020 (mn/day)

Seamless solutions to access Web Video on any terminal

Premium content available on the Internet

Consumers increasingly familiar with Web video Key players supporting Internet migration

Consumer Electronics

OS

Search engine

Computers manufacturers

…

0%

3%

6%

9%

12%

15%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

US GB DE IT FR SP

55

The emergence of new TV platform services

Rightholders

TVchannel

EPG/OSContent

packagerNetwork Terminal Consumer

New services providersmanaging the content

66

Incumbent are challenged and reacting

Advanced STB to move into the

digital home

Securing exclusivecontent

Gaining space shelve on all

platforms

Controlling the eco-system

New competitors on the VOD marketTheme channels challenged by OTT servicesTriple-play value proposition threatenedDirect distribution of (non premium) programming by US majorsNetwork congestion

Rightholders

TVchannel

EPG/OSContent

packagerNetwork Terminal Consumer

77

The migration of content to the web mechanically destroys value

0

20

40

60

80

100

120

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Live TV Catch-up TV On demand

Profitability per hours of video selon le service (UK, 2008-2020)(base 100 = Live TV, 2008)

The Press caseRevenues per reader/month vs. revenues per UV/months (EUR)

19.57817.498

1.1312.150

20.70919.648

19.6

12

0.4

2.87

14.87

20

2004 2005 2006 2007

bil

lio

n U

SD

Physical Sales Digital Sales Total

The Music caseDigital and physical markets 2004-2007(trade basis)

Tarifs and volume effects

0.0

0.5

1.0

1.5

Free newspapers Online press site

88

Focus on connected TV & Devices

99

Broadcast+ Catch-up TV

Content portalOTT premium

Home serverPersonal content

Enriched TVBest of web

Connected TVs, DVD+

Terminal +

service

Home servers

Hybrid STBBroadcast+Broadband

Many solutions to connect the TV set

Internet Set-top-box

1010

The key components of the digital home

Just widgets or…

The future digital home solution: DVR Personal content management Remote access OTT content and services Broadcast video

Off-line or on line?Embedded on the TV set?

Embedded on the telco box?

1111

Pending questions on the user interface

Is the consumer ready to confront with technology embedded in its TV set?

Will the consumer accept pushed advertising

overlaying its TV programmes?

Is the remote user-friendly enough to interact with

the TV set?How to identify the viewer to let him connect to its

web services?

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TV display STB Consoles

Sizing the connected TV user base

Connectable devices installed base - Europe

Connected consoles lead the market

Stand alone devices benefit from full digital home capabilities

Connected TV sets develop on market renewal

40% households with a connectable device in 2012

1313

Content is the driver, not the business model

Digital home players leveraging content

Increase brand stickyness through interoperable devicesLeveraging content to increase market share and increase prices

Increase brand stickyness through interoperable devicesLeveraging content to increase market share and increase prices

Leveraging content to increase market share

Bundle content and devices for high-end customers

Spread Windows use across new devices

Develop home servers as a new high value product

Enter the residential market

Enter the TV set, media, advertising market

Extend the search business to video contentEnter the TV set, media, advertising market

1414

Some key questions

Are we going to see a true OS on TV; how far will the integration

(storage) go?

Services: Full web, premium, personal content, social networking on TV?

Who will manage the new platforms: Internet portals, pay-TV providers,

telcos, CE manufacturers, technical? What impact on the IPTV services?

Will OTT content and services by-pass the TV channels? Change the way

advertising is managed?

How big is the connected TV issue? How many connected households

within 5 years? What will be the share of direct TV connection, game

consoles, home servers, etc.?

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About us

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Who we are

We benefit from a 30-years reputation built on expertise and independence.

We have built a broad network of contacts with executives across Europe, the US, Asia and Africa (Telcos, Vendors, European Commission, NRAs, …)

Our team of 35 consultants combine a wide array of expertise (engineers, market analysts and economist) and a set of proven methodologies (regulation, benchmark, strategic analysis, forecasting…). We manage 10 dedicated practices for each main sub-field of the ICT domain.

Our consulting capabilities build on in-house research, with proprietary data bases.

We directly manage our international assignments, with periodic support from a global network of reputed partners covering all key markets.

1717

Our services

We provide market research and business intelligence consulting services. Our assignments include techno-economic assessment, market sizing & forecasts, benchmarks, evaluation, business modeling, roadmaps.

We also advise public bodies, and especially local authorities, to define their ICT strategy.

We specialize in ICT markets: Telecom, Internet, Media, with specific expertise on EMEA and Asian markets, with a comprehensive approach to innovation: technologies, products & services, markets & usage.

We also deliver our expertise in the form of market reports.

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Expertise in the content industry

We focus on the impact of convergence on the content industry: NextGen television services Online content Video games Digital Home Television networks

We provide our clients with: Data and forecasts Road map and assessment of disruptive technologies Benchmark of new services Market sizing and business planning Policy evaluation Training

1919

2009 selected references

Consulting

Growth potential of the French pay-TV market

Impact of the connected TV on a telco strategy

Cost effectiveness of satellite for distribution of TV channels

State of the art of epaper

Digital cinema business planning

Online advertising best practices

Impact of User-Created Content on the Information Society

Outsourcing opportunities in the video game industry

Business plan for a VOD service over DTT

10 years forecasts of the DTH world market

Best practices on the ebook industry

Market reports

Next Gen television services

TV 2020: the Web migration

The world television market

The world video game market

The Ingame advertising market

Which network to deliver HDTV in Europe?

The Pay-TV market in Europe, 2008-2013

The connected TV in the Digital Home

3D video

The serious gaming markets

Broadcast mobile television

Internet video

2020

Our network

A global network of strategic partners

A complementary network of key partners by country and by skills

HQ / subsidary & strategic partnersKey Partners

IDATE Europe IDATE HQ (France)

IDATE Americas CENTRIS (USA)

IDATE Asia GII (Japan)

2121

Our Clients

Equipment AnritsuAlcatel-Lucent*Alcatel SpaceAcomeAscomAtos Origin*Cap Gemini*Ciena*Cisco Systems*ComverseEricsson*DellFujitsuHewlett PackardHitachiIBM*LGMicrosoft*MitsubishiMotorola*NecNokiaNortelPanasonicSagem*SamsungSonySiemensSK TelecomThomson*ZTE…

TelcosAxioneAlgérie TélécomAT&TBelgacomBouygues Telecom*BT*Cable and WirelessDeutsche Telekom*DoCoMo*EasynetEutelsat*France Télécom*KTMauritelNTTMaroc Telecom*Orange*Portugal TelecomQualcomm*SES Astra*SFR*TDF*T-OnlineTelecom ItaliaTelefonica*TelespazioTeliaTiscaliTunisie TelecomVodafone…

Media GroupsArteBBCBskyBCanal+France TélévisionsGloboInfogramesLagardèreM6MediasetPatheRAIRTLTF1TV CaboUPCVivendi Universal…

Banking-FinanceABN AmroBEIBNP ParibasCDC*CCFGoldman SachsHSBCIris Capital*Morgan StanleySociété Générale*…

Regulators, GovernmentAFOMANIEANRTARCEPCIAJCNCCNESCSADanish IT & Telecom AgencyDIACTEBUEDFEITOESAETNOEuropean CommissionGSM AssociationLa PosteLocal AuthoritiesOfcomOseoSacem…

ConsultingAT KearneyAccentureBain & CompanyKPMGMcKinseyPricewaterhouse-Coopers*…