Mobile TV Middle EastMobile TV Middle East
Fabian Olivier
Director – Corporate Strategy
EITC (du)
November 3rd & 4th 2008, Jumeirah Beach Hotel, Dubai
du
New telecommunication operator in the UAE
Quad play operator offering fixed, mobile, broadband and
TV services
Launched mobile operations in February 2007
Ambition to play a leading role in the convergence of
Telecom and Media
“We are moving from two worlds of unshared
certainties into one world of shared uncertainties”,
Osman Sultan, CEO of du
Leading the Growth of Mobile Video Services in the MENA Region
Is there a market in the MENA region for
video services?
Do consumers show an interest in video
services?
How to accelerate the take up of mobile
video?
The competition intensifies: 2 illustrations
Case study: du’s mobile TV servicesMENA stands for Middle East and North Africa
Different Ecosystems, Complementary Interests
Telecom – MobileTelecom – Mobile
175 million mobile users served by
50 operators
Growing mobile culture: 55%
penetration
30 Bn $ market, 87% voice telephony
Mobile data represents 7% of mobile
revenues (vs. 20% worldwide
average)
Profitable industry
175 million mobile users served by
50 operators
Growing mobile culture: 55%
penetration
30 Bn $ market, 87% voice telephony
Mobile data represents 7% of mobile
revenues (vs. 20% worldwide
average)
Profitable industry
Focus on mobile content as a
growth lever
Focus on mobile content as a
growth lever
Media – TVMedia – TV
250 million eyeballs served by 400 TV
channels dominated by the MBC
bouquet: 80m people watch 1 MBC
channel every day
Large content portfolio: ART, Rotana
Aflam (movies), ART (sports), Rotana
(music)
Strong TV culture: 75% watch TV 7/7
4 Bn $ market, mainly advertising
Few profitable players
250 million eyeballs served by 400 TV
channels dominated by the MBC
bouquet: 80m people watch 1 MBC
channel every day
Large content portfolio: ART, Rotana
Aflam (movies), ART (sports), Rotana
(music)
Strong TV culture: 75% watch TV 7/7
4 Bn $ market, mainly advertising
Few profitable players
In search for new revenue sources from
new media distribution (online &
mobile)
In search for new revenue sources from
new media distribution (online &
mobile)
All numbers stated refer to the MENA region, source: ITU, Arab Advisor Group, Informa Telecoms & Media (2007)
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How Big is the Opportunity Today in the MENA Region?
Online VideoOnline Video
40 million internet users (13%
penetration)
48% of internet subscribers are broadband
40-50 m$ online advertising market, and
growing fast (50% p.a.)
40 million internet users (13%
penetration)
48% of internet subscribers are broadband
40-50 m$ online advertising market, and
growing fast (50% p.a.)
Mobile VideoMobile Video
175 million mobile users (55%
penetration)
Fast 3G phone uptake (15-20 m)
175 million mobile users (55%
penetration)
Fast 3G phone uptake (15-20 m)
All numbers stated refer to the MENA region, source: ITU, Arab Advisor Group, Madar Research Journal (2007)
Slow e-payment adoption
Few regional players, UGC or
aggregators
Slow e-payment adoption
Few regional players, UGC or
aggregators
Subscription based market at its
infancy
Accessibility
Ubiquitous UMTS & HSDPA
networks rollout across the entire
region
Complementary technologies (e.g.
DVB-H, MediaFLO …) roll out
Subscription based market at its
infancy
Accessibility
Ubiquitous UMTS & HSDPA
networks rollout across the entire
region
Complementary technologies (e.g.
DVB-H, MediaFLO …) roll out
The MENA market is not mature yet but is catching up very fastThe MENA market is not mature yet but is catching up very fast
Leading the Growth of Mobile Video Services in the MENA Region
Is there a market in the MENA region for
video services?
Do consumers show an interest in video
services?
How to accelerate the take up of mobile
video?
The competition intensifies: 2 illustrations
Case study: du’s mobile TV servicesMENA stands for Middle East and North Africa
US Research confirms the Success Story of Online & Mobile Video *
119 million US citizens watch 2H19’ of online video each per
month
That is 73% of the internet population but 9% of their overall
internet usage
4.4 million US citizens watch 3H15’ of mobile video each per
month
That is 2% of the US mobile subscribers but 31% of those who
subscribe to mobile video* The Nielsen Company, May ‘08
Leading the Growth of Mobile Video Services in the MENA Region
Is there a market in the MENA region for
video services?
Do consumers show an interest in video
services?
How to accelerate the take up of mobile
video?
The competition intensifies: 2 illustrations
Case study: du’s mobile TV servicesMENA stands for Middle East and North Africa
1. User Experience
Improve the Usability and Intuitivism to experience mobile video as
simply and easy as traditional TV
- Today, you will spend on average 1:40 min to access mobile
TV service and will need 5 clicks (du service)
- A few actors who are playing a key role in reducing the service
complexity:
“As with the original iPhone, buyers are taking out bigger tariff bundles, and are proving to be higher spending customers. They consume on average 25 to 30 times more data than other Smartphone users. So the user interface and applications make a huge difference”, René Obermann, CEO of Deutsche Telekom
2. Price
Make the offering Affordable to
encourage fast adoption of mobile video
services
- Generalize ‘open access’ pricing
models
- Lower mobile TV offerings down to
the psychological threshold of 10$
per month
- Reduce substantially mobile data
pricing, which, today, increases
exponentially with the bandwidth
consumption
Operator Country
Egypt
KSA
Kuwait
UAE
UAE
* Arab Advisors Group, 3G Cellular Services in the Arab World, July ‘08
Unlimited Mobile TV offerings of operators active in the MENA region *
3. Content
Create Appeal and Excitement by making the mobile video experience different from linear TV channels
- Include pay TV channels in the mobile TV offering :
- Innovate with
UGC mobile video :
Short thematic TV programs : joke TV, celeb TV, best of TV …
Contextual, event based TV programs
Interactive services: push SMS ...
• NBC’s coverage of the Olympic opening ceremony was watched on a mobile device by 436,000 AT&T mobile customers
• Live Coverage of 2008 College Football Season: AT&T and Verizon Wireless subscribers enjoy more than 200 hours of live programming on their mobile phone
• Al Jawal (KSA) and Vodafone (Egypt) partner with ART
• Watanyia (Kuwait) partner with Showtime
4. Operating Model
Create a Media DNA to successfully move from “content enabler” to
“content retailer”
Embrace the Media Culture in planning, packaging, promoting and
branding the mobile video services in order to create awareness and
excitement
Scheduling, programming, catalogue, hits, eyeballs,
audience, viewing time are new concepts for
“technology driven” Telecom operators
Telecom Operators have to breath, feel and think
like a Media company … with intuition
Leading the Growth of Mobile Video Services in the MENA Region
Is there a market in the MENA region for
video services?
Do consumers show an interest in video
services?
How to accelerate the take up of mobile
video?
The competition intensifies: 2 illustrations
Case study: du’s mobile TV servicesMENA stands for Middle East and North Africa
Fast Moving Independent Aggregators pose a Real Challenge to Telecom Operators
Largest free ad supported mobile video destination for consumers
5 million unique visitors
300,000 channels of professionally programmed videos
Average usage: 9.28 min per visit
Average visit: 5.6 visits per month
led by a team that includes veterans from yahoo, napster, paypal and tivo
Top mobile content portal in UAE and
KSA!
Telecom Operators enter Vertically in the Multi Channel Distribution of Video Services
France Telecom secured premium broadcast rights of the
French football league on an exclusive basis to set up its triple
play TV offering (IP, Mobile, Internet)
Orange Foot, France Telecom's dedicated
football channel!
Leading the Growth of Mobile Video Services in the MENA Region
Is there a market in the MENA region for
video services?
Do consumers show an interest in video
services?
How to accelerate the take up of mobile
video?
The competition intensifies: 2 illustrations
Case study: du’s mobile TV servicesMENA stands for Middle East and North Africa
Du’s Mobile TV Services: A Promising Future
3.96
3.413.10
Duration TV sessions Average duration per TV session (min)
23 TV channels including 3
branded channels
Specials:Mobisodes Freej
Du’s Mobile TV Services: Few Channels attract Most Eyeballs
0%
100%
1 2 3 4 5
Cumulative duration
Cumulative TV sessions
Top 5 TV Channels
Mobile Video is A Multi Industry Ball Game
MediaMedia
ContentContent
E-CommerceE-Commerce
HandheldHandheld
Advertising
Sponsoring
Advertising
Sponsoring
Telecom / ISP
Telecom / ISP