Download - Rostelecom Cloud Based IPTV & OTT services
1
Rostelecom cloud based Pay TV service
Russian largest IPTV operator.
Case study
2
Rostelecom at a Glance
3
Russian Pay TV market
20%
14%
13% 8%
6%
10%
29%
Rostelecom (Cable/IPTV) Tricolor TV (Satelite) MTS (Cable)
Er-Telecom (Cable) Akado (Cable) NTV Plus (Satelite)
4
7 years of IPTV experience
5
Platform replacement preconditions
• Internal – Low customer satisfaction level
– Low “old platforms” reliability & performance
– High ownership cost
• External – Growth of video consumption in Internet
– High piracy level on Russian market
– Market development level change compared to initial IPTV product launch in 2006
6
Key business requirements defined before platform choice & implementation
• Service must be available both for on-net (Rostelecom) and off-net (non-Rostelecom) Internet users
• Service should support STB, Tablets, Smart TV, laptop, smartphones, etc.
• Time shift support for TV content is a must
• Video products (TV&VoD) is not the only focus. We’d extend our product to music, books, software
7
Strategic decisions made to meet business requirements • Cloud based service
– Multiscreen content provisioning
– Simple for customer
– Easy to implement time shift service
• 3-level platform architecture – Close to customer
– Reduce network load
– Easy to manage & maintain
– Reflects company structure
Central node
Macro region 1
Branch 1
Macro region 8
Branch 78
….
….
8
High-level platform architecture
All platform was developed according to the very precise requirements defined by different Rostelecom departments • Marketing & product • Content procurement & management • IT • Technical • Network
Content management
Charging & content
synchronization
Content Delivery
User interface
9
What cloud does
• Subscription data – Stores data on purchased subscriptions & items – Expiration date, screen availability
• Multiscreen time shift service management – Paused content – Network PVR management
• Customer preferences – Favorites channel list – Customized channel lists (sorting) – Parental control settings – Recommendation engine
• Content adaptation – Provides required video stream adopted for customer device & available
bandwidth
10
Project history
2006-2010
7 separate IPTV platforms
No single product management
150K subs reached
2010-2011
7 separate IPTV platforms
Single product management
500K subs reached
2012
New platform installed
Product management
1,4M subs reached
2013
Migration of 700K “old subs” into new platform
2,5M subs planned Eo2013
11
Does it work?
12
Rostelecom Media Services Brief description
Cloud based multiscreen content delivery platform
– Set-Top-Box
– Zabava.ru portal
– iPad app
– Smart TV & Android app coming soon
Content available :
– TV channels
– Video (TVoD, SVoD)
– Music
– Games
– Software
13
Interactive TV subscriber base growth 10 times in 3 years
Service growth
-
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
1 600 000
Jan
-10
Ap
r-1
0
Jul-
10
Oct
-10
Jan
-11
Ap
r-1
1
Jul-
11
Oct
-11
Jan
-12
Ap
r-1
2
Jul-
12
Oct
-12
Subscriber base
1 427 599 Eo2012
Service penetration
• 31% Fiber-optics broadband subs
• 10% xDSL broadband subs
• Up to 60% in some regions
• Average service penetration 16%
14
Interactive TV – key element in Triple Play strategy
Broadband Churn reduction – Broadband+TV subs churn 2 times less then Broadband-only
ARPL growth – Media services add 30% to ARPL
Broadband & Telephony ARPU decline compensation – Media services ARPU grow approx. 20% annually in opposite to declining broadband &
telephony services ARPU
New subs attraction – Interactive TV & other media services are product differentiators
15
Rostelecom Media Services Revenue
9,9 22,3
59,5
111,5
0,0
20,0
40,0
60,0
80,0
100,0
120,0
2010 2011 2012 2013(forecast)
Media services revenue, mln Euro
• Rostelecom Media Services revenues doubles every year
Excluding NCN Pay TV services revenues
16
Media services VAS
Revenue streams
Media services revenue
TV packages
Premium TV
packages
VoD
SVoD
Multiroom
20% of media services revenues are generated by VAS
22% 4%
11% 34%
29%
Subs by services VoD users
SVoD users
Premium TV packages subs
Customers with 2+ TV packages
Multiroom subs
17
TV packages
• Customer may choose either to subscribe “Mixed” TV package or “Thematic”
• Every next thematic package cost 20% lower that previous one
• Maximal package includes all thematic packages
18
Premium TV packages
• Viasat Premium HD package
• Adult channels
• HD channels
19
Video On Demand
• 20% of Interactive TV subscribers use VoD service monthly
• Average VoD user does 4 purchases per month
• VoD adds 6% to media services ARPU
20
Subscription Video On Demand
• Monthly subscription for VoD library (certain items)
– PictureBox (NBCUniversal)
– KidsClub (mixed content for kids)
21
Multiroom
• Flat rate fee for any other TV at customer premises
22
ARPU trends Ja
n-1
1
Mar
-11
May
-11
Jul-
11
Sep
-11
No
v-1
1
Jan
-12
Mar
-12
May
-12
Jul-
12
Sep
-12
No
v-1
2
ARPU • ARPU growth 36% in 2 years
• 20% ARPU growth in 2012
• ARPU growth factors:
– Non profitable rate plans cancelation
– Rate plan optimization for each region
– New packaging policy
– VAS upsell
+36% in 2 years
23
Summary
2,5 years took for Rostelecom to set up Media Services
– New product, content & marketing team
– New technical solution
– New business processes
Result:
– Twice reduced churn for bundle subscribers
– #1 Operator in Revenue on Pay TV market (Comnews Awards 2012)
– Upsell Media Services VAS allows to grow ARPU 20%
24
