MTN’s View of the OTT Landscape and the Likely Impact on Pay Tv Market

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Pay TV 2.0: The evolution of choice

TV has moved from

this…

3

…To this

The choice of what I w

ant to watch

The choice of I when I w

ant to watch it

The choice of I how and w

here I want to w

atch it

3

…To this

The choice of what I w

ant to watch

The choice of I when I w

ant to watch it

The choice of I how and w

here I want to w

atch it

The CHO

ICE of what I w

ant to watch

The CHO

ICE of I when I w

ant to watch it

The CHO

ICE of I how and w

here I want to w

atch it

TVs Evolution

On Dem

and

Broadcast

Free

Pay

TV is fundamentally

a social activity

But despite the choices of devices

Consumer will default to the

biggest available screen

TV is fundamentally

a social activity

But despite the choices of devices

Consumer will default to the

biggest available screen

…and in the home the biggest screen is the

television…

STB/TVM

obileCom

puter

Strong TV Household growth is forecast in Sub Saharan

South Africa

USD

USD

6,160 GD

P per capita

2019

2014

2020

2014

67 million

61 million

15 million

12.5 million

East Africa

USD

USD

763 GD

P per capita

2019

2014

2020

2014360 m

illion

25.8 million

17 million

419 million

Anglophone West Africa

USD

USD

3,203 GD

P per capita

2019

2014

2020

2014

249 million

212 million

27 million

20 million

Francophone West and Central Africa

USD

2019

2014

2020

2014

297 million

252 million

25.9 million

15.6 million

USD

2,846 GD

P per capita

66%

17.8%

9.3%

39%

32%

8.6%

9.8%

21%

1.0%

16.4%

50%

9.4%

Sources: Digital TV (2014) and SES estim

ates

As consumption shifts from

linear to on demand, these TV hom

es will

require an internet connection in order to consume O

TT video

The Netflix Story

The Netflix Story

The Netflix Story

The Netflix Story

Subscribers 2014: 57m2016: 94m

Streaming H

ours 2014: 29m2015: 42.5m

Originals H

ours 2014: 1302016: 600

Net C

ash Flow

2014: 16.5m2016: -1.5bn

Netflix & Amazon: Shifting from

aggregation to Production2013

2016$23.3bn

$29.1bn

Netflix & Amazon: Shifting from

aggregation to Production2013

2016$23.3bn

$29.1bn

In their latest results announcem

ent Netflix announced that they

plan on producing 1,000 hours of original content & has budgeted $8bn on content spending during

2017

Direct To Consumer

Binge watching: New Drug of choice

Binge watching: New Drug of choice

2015: I’m not a fan of

some experim

ents by stream

ing competitors

to release at once all of a television show’s episodes for a season.

Now rumoured to be

looking at a binge m

odel for new releases

Disney Movies Anywhere

Disney Movies Anywhere

Disney Movies Anywhere

Mubi

Niche VOD & Direct To Consum

er

IROKO

PRODUCES

AND DISTRIBUTES AFRICAN CO

NTENT

AFRICANS LOVE

AFRICAN CO

NTENT.

NOLLYW

OO

D OVER

HOLLYW

OO

D

The growth in OTT long form

video will drive more TVs to

become connected

15

Long form video (N

etflix/Amazon) w

ill soon account m

ore video hours than short form

(YouTube)

Connected TVs remains the screen

of choice for long form video

TV/STB still dom

inates viewing tim

e

So does that mean TV is dead?

17

Broadcast TV will have the biggest share of viewing but OTT is where

the growth is

Global Video Consum

ption is higher than ever fuelled by O

TT video

Non-Linear view

ing is expected to exceed linear video w

ithin the next 2 years

18

Success in pay tv….

Being successful in video is about securing the best

content rights and delivering it over platform

s with the m

ost scale

Mike Darcey

Former CO

O B-Sky-B

Premium

Sports continues to drive Linear Pay TV

19

Pay TV still wants to controls the Livingroom

Pay TV still wants to controls the Livingroom

Pay TV still wants to controls the Livingroom

Pay TV still wants to controls the Livingroom

21

NOW

tv – The empire strikes back!

Google, Am

azon & Apple also want to be the gatekeeper of what you watch

What will the landscape look like tom

orrow

OTT w

ill be the mainstream

and not the niche

Content Landscape with continue to go

through major changes

Sports will continue to drive Pay TV in

conjunction with exclusive VO

D

Making big bets to successful

The 1st G

old rush millionaire was not a

prospector!!

SamBrannan

OTT Video is addictive & that’s good for Telcos

Partner rather than compete