Scott Lorson - Fetch TV - Fetch TV - Telco Broadband Wars - The role of the Entertainment Bundle in a pre / post NBN world

1!Friday,  October  31,  2014  

Fetch TV Overview!

Ovum 2020!

October ‘14!

A Dual Charter!

Usaha Tegas Group!

BGSM! Astro International!

Aircel!Maxis! Media Innovations!SUN Direct!

MEASAT! Johnston Press! Pexco!Bumi Armada!

Hotel des Bergues!Overseas Union Enterprise!Kuala Lumpur City Centre! Menara Maxis & Perak!

Satellite Owner & Operator! Print & Digital Media! Oil & Gas Support Services! Oil & Gas – Exploration & Production!

Properties! Properties! Properties!Properties!

NTS!

Sri Lanka Telecom! Astro Malaysia!

Integral!Four Cross Media!

About Fetch TV!

•   Founded  2008          •   Strategic  shareholder  in  Usaha  Tegas  /  Astro  •   70  Staff  /  Offices  in  Sydney  /  Kuala  Lumpur  •   End  to  End  IPTV  PlaKorm/Content  Aggregator  

A Dual Charter!

•  Product  House  servicing  Australia  /  NZ  (Fetch  TV)  and  Asia  (Astro)  

•  Common  development  plaKorms,  code  base  and  product  roadmap  

•  Able  to  amorRse  R&D  investment  based  on  regional  scale  

Pay TV Platform Product House

Code  Base   In-­‐house  Development   Core  Product  Architecture  

Owned  Architecture   Low  Cost  OperaRons   Deep  STB  Experience  

Content  AggregaRon  

Linux  OS  (Busybox)  

Device  Drivers  

Daemon  Services  

Manufacturer  Independent  SDK  

Webkit  Web  browser  

HTML5  &  Javascript  User  Interface  

Broadcom  Nexus  

SoC  Libraries  

CFE  (Common  Firmware  Environment)    

Australians rank near top of ladder on Entertainment Services Australia – Top 5 on Entertainment Consumption !

and are amongst earliest adopters of new technology Australia – Top 5 on Technology Adoption!

CAGR of ~ 0%!

-%

10%

20%

30%

40%

50%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Pen

etra

tion

Years Since Launch

UK AU NZ

95%  

55%   52%   48%  40%  

27%  19%  

0%  

20%  

40%  

60%  

80%  

100%  

North  America  

Western  Europe  

New  Zealand   Asia   South  America  

Australia   Africa  

0.00  

0.50  

1.00  

1.50  

2.00  

2.50  

3.00  

Dec  '08   Dec  '09   Dec  '10   Dec  '11   Dec  '12   Dec  '13(f)  

Austar   Foxtel  

Australia – A low marker on Pay TV penetration!

8.8m  Households  

4.5m!

1.6m

!

Premium    Pay  TV  (Foxtel)  

  $110 pm (avg.)!  Sports Led proposition !  Not Contestable!  Not Growing!

FTA  /    Pay  Lite    

  Primary FTA Households!  Time shifting via PVR / Catch Up!  Rent / Buy Movies (physical)!  Latent demand for “Pay Lite” !

Foreign  Language  

  Greek, Italian, Arabic, Hindi / Punjabi, Korean, Mandarin Cantonese, Filipino, Vietnamese !

  Growing quickly!  Latent demand for content in FL!

Segment  DescripEon  

5.0m!

1.5m!

Fetch TV - Defining the Market!

2.3m!

Market  Opportunity  6.5m  

Competitive ecosystem was expected to develop PLATFORMS Big Pay TV (cable / sat) !

Pay Lite!

TVOD / DTO!

AVOD!

OTT

Subscription Linear!

SVOD!

10  

The “Widget” Play! STB Devices!

Chromecast!

Smart TV’s!

Gaming Consoles!

Welcome to Widget World!

12  

Lots of stores….not many shoppers!

Fetch TV - a Platform Play!

All about the User Interface!

Time!Shifting!

Video Store !in the Home !

Best of the Net!/ Media Centre!

Phone / Tablet!Companions!

Free to Air!TV!

Entertainment Pack - $15 mtm!

SVOD / Apps! ALC Channels / Tiers!

Foreign Language Opportunity!

Gree Greek!

Ital Italian!

Arabic - Sydney Arabic!

A Dual Charter!

2) NEW IQ3 STB!

1) New Packaging/Pricing!

3) Triple Play!

4) Presto Pricing!

The Business Model is built on ISP Partnerships

Content  

Hardware  

User  Experience  

SI  

fetchtv!

Telco!

Brand!

Operations!

Sales & Service!

Network!

Customer!Base!

USP  

Premium service, from trusted partner, on single bill at an attractive price!

Customer!

ISP PARTNERSHIP MODEL  

“Hero” for!Triple Play!

Winning in an!NBN world!

Product!Profitability!

•  Gateway Proposition!•  Brand “Halo” Benefits!•  Churn reduction!

•  Sell the Sizzle!•  Differentiate!•  Avoid commoditisation!

Re-contract!/ Reduce Churn!

•  High % of base off contract!•  New threat from Foxtel!•  FL version of “iPhone” event!

TELCO - WHY IPTV?  BB!

Market!Acq.!

Costs!Churn!Margins!

•  Low incremental costs!•  Break even on Starter !•  Rev Share on VAS!

A Dual Charter!Broadband Market!

47%  

16%  

15%  

8%  

12%  

4%  

Broadband  Market  Share  

Telstra* ! Optus ! iiNet ! M2! TPG ! Other !

TELCO BUNDLES!

Marketing Overview!

Service Delivery (ISP)!

  Trusted Partner!

  Single Bill!

  Bundled!

 One Stop Service!

 Unmetered!

 Quality of Service (QOS)!

BTB (ISP) BTC (Retail)