business model dvb-h - challenge for co-operation between content providers and telecom operators...
TRANSCRIPT
Business Model DVB-H -challenge for co-operation
between content providers and telecom operators
Klaus PilzBrussels, 3rd of March 2005
2DVB-H Project SwisscomETNO-Presentation 03/03/2005
Content
Swisscom Broadcast
B2C Products
Business Model DVB-H
Conclusion
3DVB-H Project SwisscomETNO-Presentation 03/03/2005
Swisscom Broadcast
Since January 1, 2002 independent corporation (wholly owned by Swisscom AG).
240 employees – of which 160 field force serving our business partners.
More than 500 stations in all of Switzerland.
Swisscom Broadcast - partner for mobile TV in Switzerland
Digital terrestrial distribution (DVB-T) in the Tessin canton for the Swiss Broadcaster (SRG); and in the Graubünden canton for a private Broadcaster.
Successful market start of „Premium Digital TV“ – the digital TV offer for local cable network operators in Switzerland
SwisscomBroadcast at
a glance
Swisscom Broadcast is
the TV broadcaster
in Switzerland
Swisscom Broadcast
has mastered the digital technology
Leading infrastructure provider for wireless transmission and related additional services in Switzerland.
Long standing experience with terrestrial and cable distribution of TV and radio
4DVB-H Project SwisscomETNO-Presentation 03/03/2005
Swisscom Broadcast evaluates the market opportunities of mobiles TV within the framework of a strategic initiative
As a result, potential products, a suitable business model and a business case for mobile TV have been developed
A qualitative and quantitative market research has been carried out in order to better assess customer needs and market opportunities before the deployment of the pilot
Swisscom Broadcast aims to launch a regional confined pilot in 2005
Swisscom Broadcast is evaluating the risks and chances of DVB-H in detail before deciding about introducing mobile TV via DVB-H
Swisscom Broadcast
5DVB-H Project SwisscomETNO-Presentation 03/03/2005
Content
Swisscom Broadcast
B2C Products
Business Model DVB-H
Conclusion
6DVB-H Project SwisscomETNO-Presentation 03/03/2005
B2C product groups can be divided into three categories
B2C Products
Standard TV Special Interest
TV Pay-per-View TV
Scheduledfile download
On demandfile download
On demandfile streaming
DVB-H
UMTS
B2C product group Characteristics
DVB-H
UMTS
123
4
Likely technology
TV products are broadcasted. End customer cannot decide about the content of the program.
„Point to Multipoint“ (1:n) distribution.
End customers decide about the content of the program that should be distributed.
„Point to Point“ (1:1) distribution.
Content is compiled by the provider and automatically pushed into the end device’s memory.
„Point to Multipoint“ (1:n) distribution.
Content subscribed by the end customer is automatically pushed into the end device’s memory.
„Point to Point“ (1:1) distribution.
Category
Pull products
„Classical“
TV products
Push products
5
6
7DVB-H Project SwisscomETNO-Presentation 03/03/2005
B2C product groups can be optimally enhanced with additional services
Additional servicesCore product
B2C product group
Core product
Standard TV TV channel
Special Interest TV TV channel
Pay-per-View TV TV channel
Scheduled file download
Automatic file download
1
2
3
4
Examples:
Information services (news, weather, traffic information,...)
Downloads (ring tones, games, ...)
Purchasing services (shopping, ticketing, ...)
Entertainment services (voting, betting, ...)
Socialising services (chat, dating, ...)
...
B2C Products
8DVB-H Project SwisscomETNO-Presentation 03/03/2005
Standard TV (Example)
B2C Products
1
A bouquet of attractive Standard TV channels is offered. The channels can be received and watched by end customers on mobile devices.
Price Monthly subscription
Interactive services Program „MusicStar“
Voting: „Which singer should continue?“John (SMS to 9991), Lucy (SMS to 9992)
Program „Zürich Total“ Information: „Event calendar“Cinema at the lake (SMS to 8001)Top discotheques in Zurich (SMS to 8002)
On demand services Program „MusicStar“ (also independent
of the program) Download of music videos (from archive)Stimulated by the program the end customer decides to download several clips
Bouquet
B
A
B
A
Additional services Interactive services and on demand services as
optimal enhancement to the TV core product
9DVB-H Project SwisscomETNO-Presentation 03/03/2005
B2C Products
Infotainment package
B
Scheduled file download (Example)
4
Interesting content that is compiled by the provider is automatically pushed into the end-device memory. End customer, who subscribed to the service, can view the content anytime.
Interactive value added services Program „Music video clip of the day“
Information: „Event calendar“Tour-Program (SMS to 5911)Program „Daily news“ Voting/Opinion: Survey: “What do you do this summer?“ Travel (SMS to 2031), Stay at home (SMS to 2032)On demand services
Category „Music“ (also independent of it) Download of ring tones (from archive) Rolling Stones index by title
Category „News“(also independent of it) Download of financial newsFinancial Breaking News by CFN-CNBC
Price Monthly subscription
A
B
ANews (latest four breaking news from SF1)Music (20 actual clips from „Top Ten Switzerland“)Comedy (four 10 minutes long funny clips)Sport (latest breaking sport news from Eurosport)Entertainment (e.g. „Single of the day“)Children (four 10 minutes long cartoons, e.g. Pluto)Weather (latest four weather forecasts from SF1)
Additional services Interactive services and on demand services as
optimal enhancement to the TV core product
10DVB-H Project SwisscomETNO-Presentation 03/03/2005
Possible interactive services for mobile TV can be grouped into five categories
Downloads
Purchasing services
Entertainment services
Socialisingservices
News Weather Traffic information
Information services
Tourist information Restaurant-, hotel
guide Horoscope,
biorhythm
Screensavers Ring tones ...
Banking ...
Casino ...
Friend finder ...
Route planer Event calendar ...
Video clips Audio clips Games
Ticketing Shopping Auctioning
Voting Lottery, quiz Betting
Chat Flirt Dating
B2C Products
11DVB-H Project SwisscomETNO-Presentation 03/03/2005
Content
Swisscom Broadcast
B2C Products
Business Model DVB-H
Conclusion
12DVB-H Project SwisscomETNO-Presentation 03/03/2005
A first scenario for the market introduction of DVB-H is the use of mobile phones for mobile TV
With DVB-H, mobile phones
will also become TV terminals,which could
createnew prime times
forTV-channels
(morning/lunch-time/late
afternoon)
TV broadcast Mobile phone
TV means entertainment and information (point-to-multipoint)
94% of Swiss households have TV access.
The average TV consumption is approximately 3.5 hours per day
Prime time is considered from 19:30 to 22:00
Communication for a mass audience (point of point)
Market penetration is 85% in Switzerland
Mobile phones improve security, accessibility and mobility – and give independence
Additional services such as voice box, SMS, internet and MMS are today regarded by consumers as commodity
Business Model DVB-H
13DVB-H Project SwisscomETNO-Presentation 03/03/2005
A close cooperation of the various market players is a prerequisite for the success of mobile TV
Business Model DVB-H
Regulatory board (OFCOM)
Technology providers
Content providers
DVB-H operator
Network operator
Pave the way for the DVB-H business
Strategies of technology providers may substantially influence the business model
Treat the DVB-H services as the first real convergent media service
DVB-H is a chance for all players, but can also threaten current business models
A suitable business model for DVB-H must be found in order to succeed with DVB-H based convergent services
14DVB-H Project SwisscomETNO-Presentation 03/03/2005
The basic DVB-H business model is a challenge for all market players to agree on a fitting co-operation model
B2C provider
DVB-H Operator
Contentaggregator
Buys content and aggregates it to marketable
products
DVB-Hservice provider
Prepares content for distribution
over DVB-H network
DVB-H net-work operator
Operates DVB-H network and
distributes DVB-H content to end customers (1:n)
Contentprovider
B2C service
provider
Network operator
Delivers content(e.g. TV
channels, Hollywood
films, ringtones, ...)
Has customer rela-tionships (incl.
billing, administration of custo-mer- and
usage- data)
Operates point-to-point network and
allows data exchange with end
customers (1:1)
End custome
rBuys and
consumes DVB-H
products
B2C products
B2B products
B2B products
Advertiser
Advertises customer
products in media
Business Model DVB-H
Contentaggregator
Buys content and aggregates it to marketable
products
15DVB-H Project SwisscomETNO-Presentation 03/03/2005
Content
Swisscom Broadcast
B2C Products
Business Model DVB-H
Conclusion
16DVB-H Project SwisscomETNO-Presentation 03/03/2005
A successful co-operation model for DVB-H based services requires trust among all involved partners as coverage costs may area specifically influence revenue share options
Conclusion
Coverage expectationsof the customers
Roll-out
User figures
Average ARPU
Content
Coverage assumptions might be a key issue for the success of DVB-H
The roll-out scenario will also heavily influence customer’s service acceptance
User figure development might be influenced by standardisation issues and co-operation models of the con-verging industries (win-win-model)
The average ARPU which will be achieved can only be verified in market trial projects
Content and decisions of DRM-standardisation should not be under-estimated in making DVB-H a success