Rapid Changes in the Broadcasting Landscape – What Are the Opportunities?

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RAPID CHANGES IN THE BROADCASTING LANDSCAPE

– WHAT ARE THE OPPORTUNITIES?

DUMISA NGWENYA FOR THE INTERNATIONAL SUMMIT ON OTT & VOD 8 February 2017

Scree saver wording About SENTECH

• SENTECH, a South African State Owned Company (SOC) is a premier provider of electronic communications network services to the country’s broadcasting and communications industry.

• Our infrastructure and data communications platforms also provide services to SA’s telecoms and mobile providers.

• SENTECH’s product offering is clustered into three main portfolios consisting of : Content and Multimedia Services, Infrastructure Management Services and Connectivity Services.

SUBTITLE OF PRESENTATION

The connected World - exciting and disruptive changes are coming via OTT and VOD services

It’s no longer a question of ‘if’ digital transformation will happen;

the question is how companies will respond. Leveraging the opportunities presented by digital video, new players are entering

the market, capturing consumers’ imaginations… Across the content value chain, aggressive

commercial bets are being placed on new business models, acquisitions, partnerships and services.

The window of opportunity for the leading players to secure their position is narrowing and decisions need to be made rapidly. To

compete in this new ecosystem, new digital-based business strategies and associated capabilities are essential. Broadcasters, telcos and cable

companies that hesitate now may spend years trying to catch up.

Source: Accenture Digital

Scree saver wording

Picture source: http://www.medicaldaily.com/spoon-fed-babies-high-risk-childhood-obesity-fussy-eating-what-infant-feeding-style-should-parents

Traditional Broadcasting

‘Consume what you are “fed”’

TV broadcasting platforms as we know

Satellite

Terrestrial

Broadband

Non-connected TV

Content Owners

Broadcasters and other

Intermediaries

Non-connected TV

Head-End

Encoding, transcoding, Multiplexing, modulation, distribution, etc

Outdated value chain

SENTECH

Connected TV – everywhere, anytime and anyhow

Image Source: http://www.popsci.com/how-to-use-new-siri-and-apple-maps-in-ios-10

User Experience Continuity

Content Owners

Broadcasters and other

Intermediaries Non-connected TV

Over-the-top (OTT) Internet Television Service Provders

Connected TV, Computers, Mobile

Devices, etc

Head-End

Encoding, transcoding, Multiplexing, modulation, distribution, etc

SENTECH

Emerging value chain

Broadband

Cloud Software Defined

Social and Portability

Future of broadcasting …

“Consume what you want, when you want, wherever

you want”

Fusion of TV Platforms

Satellite Terrestrial

OTT Connected TV

Broadband

The exciting and disruptive changes are coming via OTT and VOD services

The new way of doing things

Content Owners

Broadcasters and other

Intermediaries

Over-the-top (OTT) Internet Television Service Providers

Home Gateway SENTECH in the Cloud offering BaaS and OTT

Connected TV, Computers,

Mobile Devices, etc

Broadband

Evolution of broadcasting

Across screens

TV streaming

TV distribution and cloud

Measurement

Programmatic, Addressable, Viewer engagement

Benefits of migrating to cloud

Migrating TV to the cloud – Why?

• Cost saving

• Efficiency

• Innovation

Resulting into a more dynamic, personalized, and addressable medium.

MARKET READINESS

Market Outlook - Sub Sahara Africa

Netflix, 3372, 17%

ShowMax, 992, 5%

iRoko, 1551, 8%

StarzPlay, 1393, 7%

Icflix, 1853, 10%

Other, 10424, 53%

SUB-SAHARAN AFRICA SVOD SUBSCRIBERS BY OPERATOR IN 2021 (000’S) (DIGITAL TV REPORT: 2016)

The region will have nearly 20 million paying SVOD subscribers by 2021, up from 3.7 million expected by end-2016. 53% “other” shows a

room for new entrants.

Subscription video-on-demand revenue saw year-on-year growth of 106.3% to R46 million in 2015. Further growth of 53.7% CAGR is

predicated for 20202

Market Outlook - Sub Sahara Africa

RESPONDING TO THE EVOLUTION OF THE BROADCAST LANDSCAPE

What does it mean for AFRICA …

Shared platforms

across countries

Economic stimulation

Acquiring and

developing new skills

220 Learnerships in the past 10 years

Currently sponsoring 14 students in 3 universities

Research grant of over R3 million per year

Research, innovation and Development to stimulate export industry as part of the NDP

Hybrid DTT, DTH and OTT SADC bouquet Broadband infrastructure

development

Conclusion

Satellite Terrestrial

OTT

Broadband

Questions ?

THANK YOU.