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Is IPTV a long-term model ? Video services: IPTV Vs OTT Gilles Fontaine [email protected]

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Is IPTV a long term model ?

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Page 1: Iptv vs ott   fontaine-idate

Is IPTV a long-term model ?

Video services: IPTV Vs OTT

Gilles Fontaine [email protected]

Page 2: Iptv vs ott   fontaine-idate

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1. IPTV in Europe

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Status of IPTV (end 2010)

< 5%

< 10%

< 20%

< 30%

> 30%

IPTV penetration

rate classes

IPTV penetration rate: (IPTV HH/total pay TV HH)*100 Source: MMTV database january 2011

•14 M or 7% of European Union TV

Households technically receive IPTV (12%

of pay-TV households)

•France accounts for 45% of total IPTV

households

•Leading countries for IPTV penetration

among pay-TV households:

● France

● Slovenia

● Denmark

● Spain

● Italy

•Drivers of Bundled IPTV:

● Growth of the broadband market

● Advanced TV services

● Low cost/free multichannel television

Source: MMTV database january 2011

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IPTV offerings in Europe

IPTV services bundled in Triple play:

●Prices from 27.95 to 51.95 €/month

●Number of channels: from 40 to 185

channels. In the most cases the number of

free DTT channels is included in the offers.

●Services included: catch-up TV (in option in

some offerings)

●Services on demand: VOD, PPV…

●Options:

● Pay-TV

● multi-room option, DVR capacities…

Coutries and ISP Triple play offerings Number of channels Monthly price

France

SFR (IPTV)

Neufbox 160 (incl. DTT channels)

31.90 EUR

Orange (IPTV)

Net plus 130 (incl. DTT channels)

37 EUR

Bouygues Telecom (IPTV)

Bbox 120 (incl. DTT channels)

31.90 EUR

Numericable (cable)

NC Box HD 120 (incl. DTT channels)

32.90 EUR

Germany

Deutsche Telekom (IPTV)

Entertain Pur 70 (incl. DTT channels)

27.95 EUR

Unity Media (cable/satellite)

3play 32.000 75 (incl. DTT channels)

30 EUR

Espagne Telefonica (IPTV)

Movistar imagenio 30 (+ DTT channels)

46.08 EUR

ONO (cable)

Triple play Esencial 40 (incl. DTT channels)

51.95 EUR

Orange (IPTV)

Triple play initial 30 (incl. DTT channels)

29.44 EUR

Jazztel (IPTV)

Internet + Voz + Tv con Línea JAZZTEL

30 50.05 EUR

Italy

Fastweb (IPTV)

Parla, Naviga Casa&Fastweb TV

35 DDT channels (according areas)

49.95 EUR

United Kingdom

BSkyB (satellite)

Broadband, Sky TV and calls

One Entertainment pack (from 11 to 24 channels)

20 GBP

BT Vision (IPTV)

TV, Broadband and Calls

50 (only DTT channels)

20 GBP

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2. A long term model ?

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Recent significant moves

Unbundling IPTV: Free changed its pricing strategy from 29.99 € for triple

play to 29.99 € for telephone+telephony + 1.99 € for basic television.

Unbundling IPTV: TV (+ telephone) only service by Deutsche Telekom

(Entertain Pur).

Enhancing IPTV bundling value: Orange offers 50 free VOD films per

month.

Moving to a two-sided strategy: Vodafone, SFR to offer delivery services

for OTT content

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A new environment

1. More free content through DTT and satellite

End even more after the switch-off…

2. Digitisation of cable

More competition from cable for advanced TV services

3. Connected TV

Competiton of « Open Internet » content

Will the value proposition of bundled basic TV services decrease ?

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More free content available on DTT

tdt (20)

DVB-T

(36)

Belgium households can receive French or Luxerbourg DTT channels according their location

• Free DTT offerings

multiply in Europe,

already 14 countries have

completed analogue

switch off and 7 begin

analogue switch off

process.

• For the 10 European

countries most advanced

in the DTT broadcasting,

the average number of

available channels

exceeds 23.

• The most basic triple play

offerings include DTT

channels, in some cases

the number of DTT

channels represent 50%

of available channels in

the package.

Source: http://www.digitag.org/

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The connected TV as a new distribution model

Right

holders

TV

channel EPG/OS

Content

packager Network Terminal Consumer

Aggregators

Competition for VOD

Competition for theme

channels

Competition for triple-play

TV Channels by-passed

Network congestion

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The telcos dilemma: bundled IPTV is one of many strategies

TelcoContent

&

Service

End-user

Volume

QoS

Service &

Content

Pay per use

(End of unlimited flat rate)

Pay per quality

(e.g. different througputs, like SDSL)

Termination for IP data

(« Equivalent » to paid peering)

Performance-based

(« Equivalent » to CDN or MPLS

products, but in managed services)

Bundles traffic/service

(Equivalent to current IPTV services)

Traffic wholesale

(Eg Amazon Kindle)

Workshop 3

focusWorkshop 1 & 2

TelcoContent

&

Service

End-user

Volume

QoS

Service &

Content

Pay per use

(End of unlimited flat rate)

Pay per quality

(e.g. different througputs, like SDSL)

Termination for IP data

(« Equivalent » to paid peering)

Performance-based

(« Equivalent » to CDN or MPLS

products, but in managed services)

Bundles traffic/service

(Equivalent to current IPTV services)

Traffic wholesale

(Eg Amazon Kindle)

Workshop 3

focusWorkshop 1 & 2

« How to go out of the

Flate rate/unlimited

pricing? »

« How to manage the

Wholesale face of my

Platform? »