iptv and value-added content – the case of elion
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IPTV and value-added content – the case of Elion
Tallinn-Helsinki roundtable conference
June 6, 2008
Valeri Raag
Digital TV development manager, Elion
Content
• Overview - Estonian market and Elion
• Elion DigiTV and triple play offer
• IPTV and value-added content
• Interactive services
Estonian internet and TV market
• 1,35 million inhabitants
• 510 th households, 400 th with
TV, 50% pay for TV services
• Broadband penetration at 45% -
above EU average
• 70% of inhabitants use internet 0 10 20 30 40 50 60 70 80 90
EU (25 countries)
EU (15 countries)
Czech Republic
Estonia
Cyprus
Latvia
Lithuania
Hungary
Poland
Slovenia
Slovakia
Share of households having BB connection
Share of companies having BB connection
Elion – who we are?
• 100% subdsidiary of Estonian Telecom (majority-owned
by TeliaSonera )
• Biggest broadband and fixed voice company in Estonia
– 2007 sales 191 mEUR, net profit 38 mEUR
• Residential broadband market share 55%
• 163 th BB customers (135 th residential)
Elion - triple play offer
• Home Solution
– ADSL broadband connection (1 or 12 Mbps)
– 40 Digital TV channels + theme packages
– telephone connection
– free calls from 10th minute
• Free Self Installation Pack:
– Set Top Box
– WiFi ADSL2+ router
with fixed 3-year contract
• KSFs - strong client base (2-play), brand and retail presence
Home Solution
Internet Up to:12Mbit
Voice Free from 10th min.
IPTV Up to 100 Channels
From EUR29.-
Residential Offering
Within 2 years 50% of Elion broadband clients have subscribed for IPTV
• Launch: April 2006
• Initial roll-out for max. 100.000 ADSL users
• 90% of Estonian households reached with ADSL2+ nodes
• By end-2006 28,000 Digital TV customers
• By end of 2007 55,000 Digital TV customers
• Now, 70,000 TV customers
Value-added live TV-Radio services
• Theme packages - value for clients, opportunity for us
– Sport, Music, Slavic, News, Science and Culture,
Entertainment, Children,
– >30% of IPTV customers subscribed to theme
packages
• Radio channels in DigiTV Main Package
– 47 ad-free radio channels; 11 different music
styles
• HDTV – first provider in Baltic states, 1 channel now
Structure of DigiTV channel packages• Basic Packages:
– Estonian basic package– Slavian basic package
• Additional packages for Basic packages:– Slavian (35 Estonian kroons)– “Soome pluss” (35 Estonian kroons)
• Thematic packages:– Sci-Fi and culture (30 kroons)– News (15 kroons)– Entertainment (99 kroons)– Sport (50 kroons)– For Children (35 kroons)– Music (25 kroons)
1 EUR ~ 15 Estonian kroons
Interactive TV
• Existing interactive services:
– Video On Demand
– Picture album
– WEB browser
• Future services:
– Games
– TV chat
– e-mail from TV screen
– Interactive commercials
– TV voting
Video on Demand
• Launched in May 2007
– 500-600 rentals a day, 800 on weekends
• No additional equipment. No monthly fee. Just click.
• Hollywood and local movies, shows, music and karaoke.
Sept: lectures on demand
• Prices similar to DVD rental (1,5-4 EUR)
Own middleware - key to flexible service development
• Elion own middleware not standard solution
Advantages:
• Better compatibility with infrastructure
• Flexible and quick upgrades
• Cheaper than standard solution
• Simple interactivity integration
• Estonian menu
