Review of the channel distribution landscape and Direct Injection in the EU

Transcription

1 Review of the channel distribution landscape and Direct Injection in the EU Robert Ambrose, Ampere Analysis September

2 Contents Executive Summary EU28 Market Overview Summary Direct Injection Findings TV Distribution Technology TV Distribution Business Models TV Distribution Combinations Distribution Case Studies Appendices 2

3 About Ampere Analysis Ampere Analysis, a new breed of analyst firm founded in January 2015 by an experienced team of sector-leading industry analysts, specialises in research, forecasts and insight on pay and multiscreen TV and next-generation content distribution providing company-level analysis for every major TV market in the world. From the outset Ampere sought to utilise multiple research techniques to provide the most granular market insights available, these techniques include consumer survey, market analysis and forecasting and big data processing. Ampere s research platform is built on the latest database and data visualisation technologies which enable our clients to query and analyse vast datasets, building charts, graphs and visualisations on the fly. Clients subscribing to Ampere s research platform include: Hollywood Studios, Channel Groups, SVoD platforms, Broadcasters, Pay TV Operators, Independent Producers, Satellite Infrastructure providers, Sports Bodies, Regulators, Telcos, Management Consultancies, Investment Banks. Our syndicated services suite, covers the following sectors of the market: Ampere Markets: Global company-level KPIs, analysis and forecasts on the pay TV, OTT, broadband, mobile, advertising and multichannel markets covering customers, revenues, ARPUs and growth, providing an informed view of the fast-evolving TV distribution space. Ampere Channels: Analysis of the global TV channel market providing insight into carriage deals, channel reach and platform relationships. Ampere Consumer: Insight on the TV consumption behaviour, device trends and content preferences of TV viewers in 14 key market. Based on regular 28,000-sample surveys, Ampere Consumer helps you to understand how your audience is reacting to the changing media landscape. Ampere Analytics: A deep-dive analysis of the content market and content licensing at a title level, Ampere Analytics' Content Track provides key metrics about the world s leading VOD and SVoD services across international markets. 3

4 Executive Summary 4

5 Research Overview Playout and distribution of 580 TV channel brands across the EU28 countries was examined. Distribution to 250 free and pay terrestrial, satellite, IPTV and cable platforms was mapped. More than 25,000 channel-operator paths assessed, 8,400 analysed in detail. Channels included public service broadcasters, national commercial broadcasters, channels run by platform operators, and those provided by international media groups. Six primary distribution methods were identified and modelled. A detailed mapping of TV distribution in example markets (UK, Ireland, Netherlands and Germany) was prepared to highlight typical models. Detailed examples of specific TV companies distribution models were prepared, including ARD, Discovery Channel, NBCUniversal, and RTL Netherlands. Extensive use was made of Ampere Analysis Markets and Channels data. Additional desk research and interviews with industry experts was carried out 5

6 Key Findings (1/2) Most TV channels distributed within the EU can be considered Direct Injection because: The channel owner has an active distribution arrangement with the TV platform operator; They are distributed from playout centre to TV platform via private fibre or satellite circuits; Customers must subscribe to the TV platform in order to receive them on that platform. In total, 78% of playout-to-operator channel distribution paths are Direct Injection. Non-DI channels are those broadcast directly by the channel owner, or where passive redistribution of an off air signal is used. Nearly 82% of playout-to-operator channel paths are cross border, where the playout centre is in a different country from the TV platform. European playout is highly centralised. While national public and commercial broadcasters often maintain in-house playout, most pay TV channels are played out by specialist service providers. The London and Amsterdam areas account for the vast majority of playout centre channels. 6

7 Key Findings (2/2) 82% of Direct Injection distribution is cross-border retransmission. 79% of cross-border retransmission is by Direct Injection. 89% of all channel distribution paths is via private fibre/satellite circuits. Only a minority of operators use the traditional off-air redistribution method, where the channel is captured from an unencrypted satellite feed and retransmitted on a cable, IPTV or DTT network. These are almost all free-to-air public-service channels from ARD, BBC, France Télévisions and RAI. Many cable and IPTV operators carry more than 90% of their channels from Direct Injection sources. This analysis included: 32% of all channel-operator paths (including all of the major ones), and at least 20% of all channel-operator paths in nearly every country; 22% of all channel brands present in the EU (including all of the major ones); Every major pay TV platform operator in all 28 EU markets. 7

8 Essential Definitions Several key terms underpin this report and are defined here. Broadcaster an organisation creating or licensing content (programmes, films, etc.) and disseminating these in the form of linear, scheduled TV channels. Playout the origination of a scheduled, linear TV channel, where a series of pre-recorded (and sometimes live) content items and events are sequenced together. Broadcasting where a broadcaster makes a communication directly to the public without the intervention of a third-party other than one providing purely technical services. Retransmission (also referred to as Redistribution) where a third-party makes a communication to the public having received the original communication from the broadcaster. Cross-Border where the origin of the TV signal (playout centre) and end consumer are in two different EU countries. This is separate from the home location (HQ) of the channel owner. Direct Injection where a third-party making a retransmission to the public receives the original communication directly from the broadcaster via a private circuit (such as fibre, microwave, satellite, IP) that cannot be captured directly by the public. 8

9 TV Reception Terminology Cable Distribution via a direct coaxial (or hybrid fibre coax) cable to the home. Available bandwidth carries multiple TV multiplexes (QAM) and two-way addressable IP communication (DOCSIS). Available only on a subscription basis in Europe. IPTV Distribution via an xdsl telephone line or fibre-optic cable. Similar technology to internet ( OTT ) streaming, but IPTV services are available only to a telecom provider s own customers via their own network. Subscription basis. DTH Direct-to-home satellite broadcast. Geostationary satellites serving a particular territory are on a defined orbit, allowing household dishes to be fixed. Multiple satellites serve one country, each may comprise a mix of unencrypted free-to-view multiplexes, and encrypted pay TV. Narrow beam satellites target a smaller geographical area. DTT Digital Terrestrial Television broadcast over-the-air from VHF or UHF transmitter towers. A typical DTT service comprises 6-8 multiplexes, each containing 6-8 encoded TV channel signals plus metadata like subtitles and programme guide. Most commonly unencrypted free-to-air, though can include encrypted pay TV multiplexes. There is no longer any analogue terrestrial broadcasting in Europe. OTT Over-the-top content delivered by public internet and available to any device with internet access. May be free-toview or paid-for. May be geo-blocked to prevent out-of-country access. 9

10 EU28 TV Market Overview 10

11 EU28 TV Market Overview In this section, the big picture of the EU television market is assessed, including: types of free and pay TV platforms used; how many households use each type of platform as its primary TV service; the relative strength of each platform, and pay TV in general, in each of the EU28 countries; leading TV platform operators; leading channel operators and their most widely distributed brands. This section provides essential context for the market in which channels are distributed and carried by operators. This data is drawn directly from the Ampere Analysis Markets and Channels data service. 11

12 EU28 TV Market Overview Majority of EU s 223m households receive TV, more than 60% pay for it 2% 26% 37% Free TV Pay TV No TV Service Free Terrestrial Free Satellite 61% 135.5m HHs subscribe to a pay TV service 60m HHs rely on free over-the-air TV 74% All data for 2017 Q1. Indicates primary TV service used by a household (many pay TV HHs will also use free TV on a second set) 12

13 EU28 TV Market Overview million pay TV households use one of four types of platform 3% 4m HHs 25% 31% Pay Satellite Cable IPTV Pay Terrestrial 34m HHs 42m HHs 55m HHs 41% percentages are proportion of all EU HHs 13

14 Dominant Platforms and Pay/Free Split Vary Considerably Across EU28 Austria Belgium Bulgaria Croatia Cyprus Czech Rep Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden UK 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Primary TV platform in HH. All data for 2017 Q1 Cable IPTV Pay Satellite Pay Terrestrial Free Satellite Free Terrestrial 3,776 4,665 3,060 1, ,533 2, ,594 28,254 42,454 4,214 4,095 1,535 25, , ,600 13,430 4,149 7,576 1, ,897 4,879 25,960 TV HHs (000) 14

15 Top 20 Operator Brands Reach 58% of EU Pay TV Households Parent Group Operator Brand Technology Country HHs (000) Sky Europe Sky Satellite UK 9,785 Vodafone Kabel Deutschland Cable Germany 7,496 Iliad Free IPTV France 6,451 Liberty Global Unity Media Cable Germany 6,397 Sky Europe Sky Italia Satellite Italy 4,802 Orange Orange IPTV France 4,347 Liberty Global/Vodafone Ziggo Cable Netherlands 3,958 Liberty Global Virgin Media Cable UK 3,775 Cyfrowy Polsat Cyfrowy Polsat Satellite Poland 3,755 Bouygues Bouygues Télécom IPTV France 3,189 Telefonica Telefonica IPTV Spain 3,064 RCS&RDS Digi Cable Romania 2,893 Canal+ Group CanalSat Satellite France 2,854 Other Other Cable Cable Germany 2,754 Altice Numericable-SFR IPTV France 2,359 Sky Europe Sky Deutschland Cable Germany 2,346 Orange Orange Satellite France 2,340 ComHem ComHem Cable Sweden 2,324 Sky Europe Sky Deutschland Satellite Germany 2,175 SES Astra HD+ Satellite Germany 2,148 Top 10 Pay TV Operator Parent Groups Reach 68% of EU Pay TV Households. Sky Europe 20,237 Liberty Global 17,244 Vodafone 10,887 Orange 8,307 Canal+ Group 7,723 Deutsche Telekom 6,984 Iliad 6,451 Altice 5,766 RCS & RDS 4,412 Liberty Global/Vodafone 3, Q1 // 000s of subscribers 15

16 Most Widely Distributed Channels by Country in EU28 Channel Group Channel Brand # Countries Served Channel Group Channel Brand # Countries Served Viacom Nick 28 Fox Nat Geo Channel 28 A&E Networks History Channel 28 Disney Disney Channel 28 Disney Disney Junior 28 Fox Nat Geo Wild 27 Discovery Discovery Channel 27 France Télé JV TV5 Monde 26 Turner (T/Warner) Cartoon Network 26 Viacom Nick Jr 25 Viacom MTV 26 Turner (T/Warner) Boomerang 25 Discovery TLC 24 Fashion TV Fashion TV 23 Discovery Discovery Science 23 Discovery Animal Planet 23 Scripps Travel Channel 23 Disney Disney XD 22 ARD ARTE 22 RTL RTL 21 The table excludes news, sports, music, religion, shopping and adult channels. 16

17 Main International Channel Groups Operating in Europe, all UK Headquartered Channel Group Example Channels # Channel Brands in EU Markets * Main Playout Centres A&E Networks A&E Channel, History Channel 7 DMC, Amsterdam AMC AMC, Sundance 23 DMC, Amsterdam BBC Worldwide BBC Earth, BBC First 5 Ericsson, London CBS CBS Reality, The Movie Channel 5 DMC, Amsterdam Discovery Communications Discovery Channel, Animal Planet, TLC 36 In-House, London Disney Disney Channel, Disney Cinema 11 Encompass, London & KPN, Hilversum Fox Networks NatGeo Channel, Fox 17 DMC, Amsterdam & MX1, Munich Modern Times Group Viasat 25 Encompass, London NBCUniversal Universal Channel, Syfy, E! 10 Arqiva, London Scripps Networks Travel Channel, Food Network 5 DMC, Amsterdam Sony Pictures Television AXN, Sony Max 23 Arqiva, London Turner (Time Warner) Cartoon Network, TNT 23 In-House, London Viacom Nick, MTV 27 In-House, London & In-House, Amsterdam * Indicative number of channel brands as of 2016 Q3. All genres. Including joint-venture channels. Brand count excludes localised/language versions. Exact number will vary. 17

18 Summary Direct Injection Findings 18

19 Summary Direct Injection Findings In this section, the results of analysis on the distribution of individual channels to TV platforms in each of the EU28 countries is assessed, including: which are Direct Injection (delivered via private circuit to pay TV platform on which it is retransmitted); which are cross-border (where playout centre is in a different country from TV platform); which are broadcast vs. retransmission (see definitions of essential terminology). This is presented from both the channel owner s view, and the platform operator s view. This provides the core analysis of the proportion of channels distributed by Direct Injection and cross-border. This analysis was based on a large sample of the main European channels drawn from the core Ampere Analysis Channels and Operators data. The primary playout centre location for each channel, and the distribution technology used to distribute the channel to each operator was modelled based on additional research and interviews. This results in an identifiable channel-operator distribution path for each combination of channel brand and in-country TV platform. 19

20 A Significant Proportion of Channels and Operators were Analysed A total of 2,666 individual channel brands are distributed across the EU s 250 main TV platforms in the relevant genres*. Of these, 584 (22%) were analysed in detail, down to playout centre location and distribution used. This covered all major international channel brands. It also covered the leading public-service broadcasters and commercial channels in all major markets (Belgium, France, Germany, Ireland, Italy, Netherlands, Poland, Portugal, Spain, UK). A subset of channels was covered in other markets. Insufficient data was available for detailed analysis of Cyprus, Latvia and Malta. * Only channels of genres typically containing content from production companies were considered. The genres adult, business news, music, news, religion, shopping, sport and weather were not included. The model will allow additional channels to be added to the analysis in future. Channels were not weighted by audience numbers or subscription revenue, however the 584 channel brands assessed represent the all of the major international channel brands, and the largest national players in the main markets. The 584 channels brands represent thousands of unique channels, as many international channels exist in multiple versions tailored to each market. Channels not assessed are smaller, national-only channels, or those originating from outside the EU. 20

21 A Significant Proportion of Channels and Operators were Analysed Every major TV platform delivering content within the EU28 was included in the analysis. This totals more than 250 TV platforms, including pay TV (cable, IPTV, satellite and terrestrial) and free TV (satellite and terrestrial). What is a channel-operator path? Each combination of channel brand delivered to an individual TV platform operator represents a specific distribution path: from playout centre to consumer. There is a total of 26,226 individual channel-operator paths in operation within the EU for the channel brands analysed in this research. Of these, 8410 (32%) were analysed in detail. In all but a handful of countries, at least 20% of channel-operator paths were assessed (see table). As such, we are confident that this sample represents the vast majority of the value of the industry. An Excel spreadsheet is supplied, providing access to more detailed data than summarised here. 21

22 What is a Channel? Each channel brand may have multiple versions. Public-service broadcasters frequently have regional variations. National commercial broadcasters may create versions tailored for different countries for example ProSiebenSat.1 has slightly different versions of its main channels for Austria (and Switzerland). These contain different commercials, and some different content (where, for example, P7S1 does not have content rights in Austria). International broadcasters typically create multiple versions of their channels for each market. These are tailored by language, advertising, and content. The content may depend on local tastes, compliance rules (e.g. for sexual or violent content), as well as available content rights. 22

23 Channel Distribution Key Measures Re-transmission Re-transmission Broadcast Cross-Border Cross-Border National Direct Injection Direct Injection Non-DI 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage of channel-operator paths delivered via each model 23

24 Direct Injection Types DI Type Cross-Border Retransmission Direct Injection Other Direct Injection 82% of Direct Injection is Cross-Border Retransmission 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 24

25 Direct Injection by Type of Operator Free/Pay Platform # DI Channel Paths % DI # Non-DI Channel Paths % Non-DI Cable % % Pay TV IPTV % % Satellite % % Terrestrial % % Free TV Satellite 0 0.0% % Terrestrial 0 0.0% % TOTALS % % 25

26 Direct Injection by Type of Operator Almost one third (32%) of all channel-operator paths in the EU28 were analysed in detail. Of the 8410 channel-operator paths analysed, 78% use Direct Injection. This includes both free and pay TV platforms in use across the EU. For pay TV platforms, the proportion of Direct Injection is higher. 87% of all channels delivered to pay TV platforms are by Direct Injection. The proportion for cable (89%) and IPTV (92%) is even higher. The lower proportions of DI on pay satellite are a result of more free-to-air channels within pay-dth packages, and more operator-owned channels. No Direct Injection is used for free-to-air platforms these channels use a broadcast model with no third-parties involved in retransmitting. 98% of channel feeds involve retransmission to reach the end consumer, with just 2% broadcast. 82% of channel feeds are cross-border, where the playout centre is in a different country from the TV platform. 26

27 Direct Injection by Type of Distribution Business Model Distribution Business Model # DI Channel Paths % DI # Non-DI Channel Paths % Non-DI Standard National Broadcaster Distribution Standard Distribution with Overseas Playout Centre % % % 0 0.0% Full International Distribution % % Operator Distribution 0 0.0% % Proactive Redistribution % % Passive Redistribution 0 0.0% % TOTALS % % 27

28 Direct Injection by Type of Distribution Business Model Even within traditional national broadcasting environments, 74% of channel distribution is via Direct Injection. This is a result of the widespread use by consumers of pay TV platforms. Even in markets where consumers could watch many channels on a free-to-view platform, many choose to pay for a cable, IPTV or pay satellite service. For broadcasters using an overseas playout centre, 100% is Direct Injection. This reflects the use of this model by RTL in Belgium and Netherlands, markets in which there is very low free-tv use. The majority of European channel distribution comes from major international channel owners, and distributed from central playout centres usually in the UK or Netherlands. 93% of these channels are Direct Injection. The remainder are those channels shown on free-to-view platforms. Channels notionally targeted at one country, but also proactively distributed to operators in other EU markets are 84% Direct Injection. The remaining 16% are carried on free-to-view platforms. Some operators, like Sky, run their own channels. These are played out and distributed all by the operator. With no third-party involved, these are not Direct Injection. Off-air passive redistribution of free-to-view, mostly public-service, channels are not Direct Injection. 28

29 Direct Injection by Cable Operators The tables that follow indicate the number of Direct Injection channels assessed by cable operator. On average, of the channels carried by each cable operator, 89% are Direct Injection. The operator-by-operator data shows that more than 90% are Direct Injection for many operators. Note that not all channels carried by each operator were included in the detailed analysis, so precise proportions of Direct Injection may vary, particularly in the case of a large number of redistributed non- DI channels carried on the cable network. 29

30 Direct Injection by Major Cable Operators (1/5) Country Operator # DI Channel Paths Assessed % DI # Non-DI Channel Paths Assessed % Non-DI Austria Liwest % % UPC % % Belgium Tecteo/Telenet % % Bulgaria Mobiltel % 4 8.3% Croatia T-Hrvatski Telekom % 5 8.2% Cyprus Cablenet % 2 7.4% Czech Republic Denmark Nej TV % % UPC % 2 4.7% Stofa % 2 6.5% YouSee % 4 7.3% 30

31 Direct Injection by Major Cable Operators (2/5) Country Operator # DI Channel Paths Assessed % DI # Non-DI Channel Paths Assessed % Non-DI Estonia Starman % % STV % % DNA Welho % % Finland Elisa % % Telia Sonera % % Germany Hungary Kabel Deutschland % 5 8.6% Unity Media % % Digi % 3 6.5% Invitel % % Tarr % 3 5.6% Ireland Virgin Media % 5 9.6% 31

32 Direct Injection by Cable Operators (3/5) Country Operator # DI Channel Paths Assessed % DI # Non-DI Channel Paths Assessed % Non-DI Balticum TV % 4 8.2% Lithuania C Gates % 1 2.9% Init % 1 5.0% Splius % 1 3.1% Luxembourg Eltrona % % Numericable % % Malta Melita % % Netherlands CAIW % % Ziggo % % 32

33 Direct Injection by Major Cable Operators (4/5) Country Operator # DI Channel Paths Assessed % DI # Non-DI Channel Paths Assessed % Non-DI Inea % 2 3.2% Multimedia Polska % 0 0.0% Poland Toya % 2 2.4% UPC % 1 1.6% Vectra % 2 3.0% Portugal Cabovisao % 2 4.7% NOS % 2 3.6% Romania Slovak Republic Digi % 2 5.0% Telekom Romania % 2 3.4% UPC % 3 4.8% Slovak Telekom % 3 4.7% UPC % 1 1.9% 33

34 Direct Injection by Cable Operators (5/5) Country Operator # DI Channel Paths Assessed % DI # Non-DI Channel Paths Assessed % Non-DI Slovenia Telekom Slovenije % 4 6.2% Telemach % % Euskaltel % 5 9.3% Spain ONO % 2 4.3% Telecable % 1 5.6% Sweden Canal Digital Cable % 5 9.1% ComHem % 0 0.0% UK Virgin Media % 2 2.3% 34

35 Direct Injection by IPTV Operators The tables below indicate the number of Direct Injection channels assessed by IPTV Operator. On average, of the channels carried by each cable operator, 92% are Direct Injection. Note that not all channels carried by each operator were included in the detailed analysis, so precise proportions of Direct Injection may vary, particularly in the case of a large number of redistributed non- DI channels carried on the IPTV system. 35

36 Direct Injection by IPTV Operators (1/4) Country Operator # DI Channel Paths Assessed % DI # Non-DI Channel Paths Assessed % Non-DI Austria Telekom Austria % % Belgium Proximus % % Bulgaria Mobiltel % % Croatia Cyprus Czech Republic Optima Telekom % 2 3.9% T-Hrvatski Telekom % 5 8.2% CYTA % 1 3.7% PrimeTel % 1 5.3% O2 Czech Republic % 0 0.0% 36

37 Direct Injection by IPTV Operators (2/4) Country Operator # DI Channel Paths Assessed % DI # Non-DI Channel Paths Assessed % Non-DI EnergiMidt % 3 5.0% Demark Telia % 2 5.3% Waoo % 1 2.4% Estonia Telia % % Bouygues Télécom % 5 6.8% France Free % 6 6.4% Numericable-SFR % 3 4.9% Orange % 5 9.3% Germany Deutsche Telekom % 2 2.3% Greece Hellas Online % % OTE % 1 5.9% 37

38 Direct Injection by IPTV Operators (3/4) Country Operator # DI Channel Paths Assessed % DI # Non-DI Channel Paths Assessed % Non-DI Hungary Magyar Telekom % 1 2.0% Ireland Eircom % 5 9.6% Lithuania Teo % 1 3.0% Malta GO % % Netherlands KPN % % Online.nl % 3 7.1% Poland Netia % 2 3.1% Orange % 3 4.0% Portugal MEO % 2 4.7% Vodafone % 3 5.8% 38

39 Direct Injection by IPTV Operators (4/4) Country Operator # DI Channel Paths Assessed % DI # Non-DI Channel Paths Assessed % Non-DI Romania Telekom Romania % 2 3.4% Slovakia Orange % 4 7.3% Amis % 3 5.5% Slovenia T % 5 7.9% Telekom Slovenije % 4 6.2% Spain Sweden Orange % 1 4.3% Telefonica % % Telenor % 5 9.1% Telia Sonera % 5 8.9% UK BT % % 39

40 Insufficient sample data for Cyprus, Greece, Latvia, Malta Ampere Analysis 2017 One Third of all EU Channel-Operator Paths Analysed Country of Platform PSB National Ccl National International Operator Grp National Grp Not Analysed % Analysed Austria % Belgium % Bulgaria % Croatia % Cyprus % Czech Republic % Denmark % Estonia % Finland % France % Germany % Greece % Hungary % Ireland % Italy % Latvia % Lithuania % Luxembourg % Malta % Netherlands % Poland % Portugal % Romania % Slovak Republic % Slovenia % Spain % Sweden % UK % Grand Total % 40

41 Insufficient sample data for Cyprus, Greece, Latvia, Malta Ampere Analysis 2017 Direct Injection by Country of Platform Country of Platform # DI Channels % DI Channels # Non-DI Channels % Non-DI Austria % % Belgium % % Bulgaria % % Croatia % % Cyprus % 4 5.5% Czech Republic % % Denmark % % Estonia % % Finland % % France % % Germany % % Greece % % Hungary % % Ireland % % Italy % % Latvia % 0 0.0% Lithuania % % Luxembourg % % Malta % % Netherlands % % Poland % % Portugal % % Romania % % Slovak Republic % % Slovenia % % Spain % % Sweden % % UK % % Grand Total % % 41

42 Note: use caution when considering countries with a lower sample of channels Ampere Analysis 2017 Direct Injection by Playout Centre Location Playout Country # DI Channels % DI Channels # Non-DI Channels % Non-DI Belgium % % Bulgaria % % Croatia % % Czech Republic % % Denmark % 3 2.8% Finland % % France % % Germany % % Ireland % % Italy % % Latvia % % Luxembourg % 7 3.0% Netherlands % % Poland % % Portugal % % Romania % % Slovakia % % Slovenia % 0 0.0% Spain % % Sweden % % UK % % UK/NL % % Grand Total % % 42

43 TV Distribution Technology 43

44 TV Distribution Technology In this section, the technology used to distribute TV channels in Europe is assessed, along with the main types of service providers involved in the chain between the channel owner and TV platform. It includes: an overview of a typical TV distribution system for cable/iptv, satellite and terrestrial transmission; an assessment of the activities and service providers involved in the distribution; identification of the main playout centres used in Europe; key terminology; real-world distribution examples including Discovery Networks, Arqiva, Globecast and RTL. This provides essential context to understand the technical path for a TV signal as it is distributed from a playout centre, via private circuits, goes though a number of technical processes, reaches a TV platform operator and ultimately a public consumer. This analysis was based on research and interviews with a wide range of industry sources. 44

45 TV Distribution Terminology Playout Centre Facility where scheduled linear TV channel is created, normally based on automated playlist of programmes, ads and channel branding, plus insertion of live content. Fibre High-capacity network used to transport lightly-compressed live TV signals from point to point. The most commonly-used method of TV signal distribution. Contribution Satellite A private, encrypted satellite transponder used to transport lightly-compressed live TV signals from point to point, or (more commonly) from one point such as a playout centre to multiple head ends. Multiplex A package of TV signal streams encoded together to be carried on a single cable, satellite or terrestrial frequency underpins digital broadcasting. Uplink Transmitting a multiplex of content to a satellite from a base station (or teleport). Turnaround Signal The reception of an off-air signal (usually from DTH) and its immediate distribution via another satellite uplink or cable network. Also known as off-air retransmission. Head End Facility run by a cable operator to combine, process and inject signals into their network encoding, multiplexing and encrypting signals. May include local content insertion. CAS Conditional Access System used to encrypt TV signals in a pay TV system, making them available only to subscribers. 45

46 Most TV Channels are Delivered to Operators via Private Circuits For a channel to be Direct Injection, it must be transported from playout centre to TV platform via a private circuit that is not available for public consumption. This is demonstrably the case across the vast majority of European TV distribution. Our analysis found that 89% of channel distribution is via a private fibre network or encrypted contribution satellite feed from playout centre to the TV platform s facility or head end. The remaining distribution is almost exclusively used for redistribution of free-to-air public-service channels from ARD, BBC, France Télévisions and RAI. These channels are received from unencrypted DTH satellite feeds and rebroadcast by an operator in another country on their own cable, IPTV or DTT network. 46

47 Most TV Channels are Retransmitted, not Broadcast For a channel to be Direct Injection, it must be retransmitted via a third party who plays more than a purely technical role. Such third parties would include cable, IPTV, pay satellite and pay terrestrial operators. Channels that are delivered directly from playout centre to consumer with purely technical activities in between may be considered broadcast. Our analysis found that 98% of channel distribution is retransmitted. The remaining broadcast channels are almost exclusively free-to-air public-service channels and national commercial channels. These are commonly available on free terrestrial and free satellite platforms in their respective markets. The following slides explain the methods used to distribute TV channels in Europe, and explain the technologies and networks used by channel owners and TV platform operators. 47

48 Simplified Example of Typical TV Distribution Technology Broadcaster Completed Content (Programmes, Ads, Branding) Schedules Point of Presence Fibre Encoding & Mux CAS DTH satellite Trunk fibre Satellite transponder operator Uplink Pay DTH Consumer Internet or physical delivery Point of Presence Encoding & Mux Service provider Fibre Point of Presence Tower operator Free DTT Consumer Playout Centre Broadcaster In-House (or) Service Provider Point of presence is a major connection point on a fibre network that allows direct access to high-capacity connections. Trunk fibre Point of Presence Teleport (uplink) Contribution satellite Cable head end Encoding & Mux CAS Cable/telco network Cable/IPTV Consumer 48

49 Simplified Example of Typical TV Distribution Technology A playout centre creates the linear TV channel. This may be owned and operated by a broadcaster, a pay TV operator, or may be a larger central playout centre run by a service provider playing out many different channels. The playout centre is linked directly to a point of presence (PoP) on a high-capacity trunk fibre network. In many cases, playout centre operators also provide this connectivity to their clients, or it may be from a telco. More than one route is provided for redundancy. Each platform operator (terrestrial, satellite, cable, IPTV) is connected to the same trunk network to receive a feed of the broadcast. In some cases, a contribution satellite feed is used instead of, or as well as, fibre. This is cost effective to reach multiple head ends. Contribution satellites are uplinked from a teleport. These may be immediately adjacent to the playout centre or may be many km away, connected by fibre. Multiple TV channels are compressed (encoded) and combined into a multiplex. Encoding and multiplexing may be done by the playout centre, platform operator, or by a separate service provider. Larger broadcasters may manage their own multiplexes, smaller broadcasters are combined with other channels by a service provider. Pay TV operators encrypt the multiplex using a conditional access system (CAS). Each multiplex is transmitted on a single frequency, on the DTT tower, on the DTH satellite transponder or on the cable network. It may also be carried via IP. The consumer s TV or set-top box receives and decodes the multiplex and displays metadata like the Electronic Programme Guide (EPG). 49

50 Real-World Example of TV Distribution: Discovery Europe Source: Discovery Europe (SlideShare) Note: no higherresolution version of this diagram is available. 50

51 Role of TV Distribution Third Parties and Service Providers (1 of 2) Third Party Activity Example Public Communication? Playout Centre Operator Plays out linear TV channels on behalf of one or more broadcasters Arkena, Arqiva, TVT/DMC, Encompass, Ericsson, KPN Purely technical Coding & Mux Combines several channels into one multiplex ARD and BBC (in-house), Arqiva (for DTT clients), all major cable operators Purely technical Teleport Ground station to uplink signals to a DTH or contribution satellite Arqiva, Eutelsat, Globecast, Media Broadcast Satellite Purely technical Satellite Operator Launches and operates satellites, leases transponders to broadcasters, platform operators, service providers Eutelsat, SES (Astra) Purely technical Fibre Connectivity Leases fibre capacity from telcos and provides circuits to broadcasters and their service providers BT, KPN, Vodafone (and resold by most playout centre operators) Purely technical Contribution Satellite Private satellite transponder for non-public TV distribution Same as DTH satellites. Transponders often run by playout centre operators Purely technical DTT Tower Operator Runs terrestrial transmitting tower infrastructure Arqiva, TDF, Media Broadcast Purely technical DTT Multiplex Operator Manages one or more DTT multiplexes, leasing space to channel operators for free or pay TV. May or may not have public brand. Arqiva, Freenet, KPN (Digitenne), May be purely technical (free TV) or may be a platform operator (pay DTT). DTT Branding Entity Brands DTT service with platform-style logo, EPG and equipment compatibility, sets national DTT standards Freeview, Saorview Requires legal interpretation 51

52 Role of TV Distribution Third Parties and Service Providers (2 of 2) Third Party Activity Example Public Communication? Satellite Transponder Operator Runs pay TV satellite service leasing satellite transponders and combining channels from a variety of sources into a single encrypted platform. Some broadcasters manage their own DTH transponders directly, particularly for free-to-air channels. CanalSat, M7, Sky, BBC, ARD Applies to any encrypted satellite service Free Satellite Branding Entity Creates brand around free-to-air satellite services to encourage consumer uptake. May provide free encryption. Freesat, Saorsat, Tivù Sat Requires legal interpretation Cable Operator Runs pay cable TV service owns cable infrastructure and distributes channels from a variety of sources on a single platform Liberty Global, Vodafone All cable services are paid for IPTV Operator Runs IPTV service owns (or leases from telco) IP infrastructure, and distributes channels from a variety of sources on a single platform. Often a hybrid service, mixing over-the-air DTT channels with on-demand content delivered by IP. Altice, BT, Iliad, Orange, Telefonica All IPTV services are paid for, though off-air DTT services may be available without payment. Distribution Aggregator Aggregates multiple channels in one place and makes these available to multiple cable and satellite operators. M7 KabelKiosk, Ericsson Channel Store Purely technical OTT Streaming Provider Retransmits live TV signals (usually captured off-air from DTH satellite) on an online service for subscribers. TVPlayer Typically paid-for (though PSB channels without explicit carriage deal are carried free) OTT Service Provider Provides a managed service platform allowing broadcasters to stream their live channels and on-demand content via OTT internet Tech and white-label providers, including many playout centre operators like Ericsson May be purely technical (platform provider), or may offer service element (like running pay TV platform OTT Platform Provider Provide devices able to receive live TV streams directly, or via user loaded applications. Amazon, Apple, Roku Requires legal interpretation 52

53 Major European Playout Centre Service Providers and Locations Owner Playout Centre Example Channels Arkena Paris Canal+ Group channels Arqiva Encompass Ericsson London Chalfont London Chiswick Park Riga, Latvia London W12 London Chiswick Park Stockholm Hilversum Channels from NBCUniversal, Sony and Turner. Arqiva also operates major Teleports and UK DTT distribution. Disney Channels and MTG channels for Nordic countries (former MTG facility) Viasat World Channels (former MTG facility) BBC, BBC Worldwide (former Red Bee Media facility) ITV (former Technicolor facility) TV4 NPO (Ericsson Channel Store also based here) Globecast London BBC Worldwide KPN Hilversum Disney Dutch language channels RTL BCE Luxembourg RTL NL, BE, HR and HU channels, Groupe AB channels SES MX1 Munich German language versions of A&E and Fox channels TVT DMC Amsterdam Channels from A&E, AMC, CBS, Fox, and Scripps 53

54 How are Multiple Channel Versions Handed? In most cases, each version of the channel is distributed as an individual feed, originating from a dedicated system ( playout chain ) in the playout centre. In some cases, playout for particular markets may be in a different location from the main centre. For example SES s MX1 plays out German-language versions of some A&E and FOX channels from its facility near Munich. This is usually for specific operational reasons (such as the need for staff speaking the language of the content), or legacy reasons (such as the acquisition and subsequent rebranding of a local channel). In some cases, a single feed of the channel originates from the playout centre, containing multiple synchronised audio tracks and corresponding subtitle (closed caption) files. Each local operator receives the same feed, and chooses the correct language components for their consumers. For example, NBCUniversal has a single European HD version of its E! channel. This feed carries eight language and subtitle versions. Each local operator ( affiliate ) also inserts their own advertising using local equipment. In most cases platform operators retransmit the channel as is, but in some cases they insert additional content, particularly local advertising. For example, HBO s channels in the Adria region (Croatia, Serbia, Slovenia, Bosnia, Herzegovina and Bulgaria) arrive as five incoming feeds. Specialised equipment in each operator head end is used to splice in localized promotional material, language-appropriate audio, subtitles and teletext, producing 20 individual channels. 54

55 TV Distribution Fibre & Teleport Networks: Arqiva Example Large playout operators like Arqiva lease dark fibre capacity and satellite transponders to provide connectivity between playout locations, uplink teleports and cable TV head ends. Arqiva s network links major EU hubs like London, Hilversum, Munich and Milan. This network enables Arqiva to playout and deliver international channels across the EU. Source: Arqiva 55

56 TV Distribution Fibre Networks: Globecast Example A similar network is operated by Globecast, a subsidiary of Orange, which has a major playout centre in London and boasts 92,000km of fibre in its network. This network enables Globecast to operate with just one EU playout centre, in London. Source: Globecast 56

57 TV Distribution Fibre Networks: RTL BCE Example Luxembourg-based BCE is another example of a playout centre operator managing an extensive EU-wide network for media distribution. Underlying infrastructure provided by telcos such as KPN. This network enables RTL to operate a central playout centre (BCE) in Luxembourg serving several countries. Source: BCE 57

58 Some Important Differences Between cable, satellite and IPTV Cable Operators Cable is a closed system, with the operator in complete control of which TV signals are distributed. Only those TV channels fed into the cable system by the operator at the head end can be received by consumers. Cable operators may pay carriage fees to a channel operator based on the number of subscribers. Or, in some cases, channel may pay cable operator to access its network. Nearly all cable channels are Direct Injection delivered to the head end by fibre or contribution satellite and available only to paying subscribers. Exceptions are the cable operator s own channels and off-air redistribution. Satellite Operators Most pay TV satellite platforms combine a mix of premium pay TV channels and free-to-air channels. This is not always apparent to satellite TV customers who may not even realise that many of the channels on their service are in fact free. Satellite operators may pay carriage fees to premium channels. In some cases, a channel may pay the satellite operator for their channel to appear on the EPG or to be encrypted. All pay channels on satellite are Direct Injection, with the exception of channels owned by the DTH operator, or those carried on a broadcaster s own transponder usually free-to-air publicservice broadcasting channels. IPTV Operators Similar distribution model to cable, IPTV operators control access to their service, delivered via a closed network. Unlike cable, many IPTV services are hybrid combining the main channels delivered via DTT with additional services delivered via the IP network. In some cases, consumers may continue to receive free-to-air channels if they cease paying their IPTV subscription. In other cases, access to the set-top box may depend on payment. Nearly all channels on IPTV are Direct Injection, with a similar model to cable. However, free channels received by DTT in a hybrid system are non-di. 58

59 TV Distribution Business Models Overview 59

60 TV Distribution Business Models Overview In this section, more detail is provided on the channel-operator distribution paths that underpin the main Direct Injection analysis. It moves beyond the pure technology to assess the business models used for channels and their distribution, and includes: identification of five main TV channel types; identification of six main distribution business models. This provides the underlying model that enables the detailed assessment of each channel-operator distribution path. This analysis was based on detailed examination of Ampere Channels and Operators data, triangulated with research and interviews from industry sources involved in channel distribution. 60

61 Five Channel Types Can be Defined for TV Distribution The type of channel, its ownership, and whether it is free or pay, influences the type of distribution used and the type of platforms on which it is distributed. We have categorised five main channel types, described in this section. For example, national public service broadcasters, and many national commercial broadcasters, are normally broadcast directly and available free-of-charge to the public though may also be retransmitted by pay TV platforms (cable, IPTV) in their target countries, as well as being retransmitted in other countries. Whereas, channels owned by international channel groups, national channel groups, and pay TV platform operators are almost always available only to subscribers on a pay TV platform. National PSBs, national commercial broadcasters and national channel groups are targeted at a specific country (or language group of countries), and may have additional distribution in other markets. International channels are designed for widespread distribution in many countries. 61

62 Overview of Five Channel Types Channel Owner Description Free/Pay? Examples C1 National Public- Service Broadcaster Publicly-funded free-to-air national broadcasters. Free ARD, BBC C2 National Commercial Channel Main national commercial broadcasters in each country those that typically featured on original analogue free-to-air services. Usually still free-to-air, but may be pay especially for HD or additional channels. Usually Free Antena 3, ITV, TF1 C3 International Channel Group Premium branded channels provided by international media companies on pay TV. Usually Pay Discovery, Disney, Fox, NBCU, Turner, Viacom C4 Operator Channel Group Channels owned and operated by a pay TV platform operator. Available to their own subscribers, and also sometimes carried on competing platforms. Usually Pay Canal+ Sky C5 National Channel Group Thematic branded channels provided by national media companies in a smaller number of markets. Usually Pay Groupe AB UKTV 62

63 Six Business Model Cases Defined for TV Distribution Based on the technology outlined in the previous section, we have identified six main types of distribution business models used by broadcasters for their channels. We have found that most channels (98%) can be considered retransmission (via a third party), with a minority as broadcasting (direct to the public). Most channels (82%) are cross-border where playout centre is in a different country from the TV platform serving the public. Each model can be mapped to particular broadcaster, their channel, the location of their playout centre, and the TV platform(s) carrying the channel. In the vast majority of cases, distribution is active by the channel owner, with agreements in place with the TV platform to provide a direct feed. In one of the models, distribution can be considered passive, where the channel owner has no direct business relationship with the TV platform. 63

64 Overview of Six TV Distribution Business Models Model Technical Distribution Cross- Border? Examples D1 Standard National Broadcaster Distribution Fibre or contribution satellite direct to TV platform head ends No ARD, BBC, ProSieben, Antena3 D2 Standard Distribution with Overseas Playout Centre Fibre or contribution satellite direct to TV platform head ends Always RTL channels in Netherlands, Belgium and Hungary D3 Full International Distribution Fibre or contribution satellite direct to TV platform head ends Usually Discovery, Disney, Fox, NBCU, Turner, Viacom D4 Operator Distribution Playout at operator s head end facility Sometimes Sky, CanalSat, Telefonica D5 Proactive Redistribution Fibre or contribution satellite direct to TV platform head ends Always ProSieben channels in Austria RTL German channels across EU RAI in Croatia D6 Passive Redistribution DTH satellite turnaround, or inclusion of overspill reception in platform bouquet Always ARD and BBC in Netherlands France Télévisions in Belgium 64

65 TV Distribution is an International Business: More than 80% Cross-Border RTL Netherlands Example Channel Owner LU Playout Centre LU Target Country NL Platform Operator NL BE LU Definition of Cross-Border used in this analysis: where playout centre is in a different country from the platform operator 65

66 TV Distribution Models Detail 66

67 TV Distribution Model Detail This section expands further on the channel-operator distribution paths, presenting a detailed technical block diagram and description for each of the six main distribution business models. In each case the degree to which the distribution business model is Direct Injection is assessed. This provides additional context to explain exactly how a TV channel is distributed, and the activities and service providers involved. This analysis was based on research and interviews from industry sources involved in channel distribution. 67

68 Recap: Simplified Generic Example of Typical TV Distribution Technology Broadcaster Completed Content (Programmes, Ads, Branding) Schedules Point of Presence Fibre Encoding & Mux CAS DTH satellite Trunk fibre Satellite operator Uplink Pay DTH Consumer Internet or physical delivery Point of Presence Encoding & Mux Service provider Fibre Point of Presence Tower operator Free DTT Consumer Playout Centre Broadcaster In-House (or) Service Provider Trunk fibre Point of Presence Teleport (uplink) Contribution satellite Cable head end Encoding & Mux CAS Cable/telco network Cable/IPTV Consumer 68

69 D1 Standard National Broadcaster Distribution Country A Broadcaster or Service provider Point of Presence Fibre Encoding & Mux DTH satellite Trunk fibre Uplink Free/Pay DTH Consumer Point of Presence Encoding & Mux Fibre Point of Presence Broadcaster or Service provider Tower operator Free DTT Consumer Playout Centre Broadcaster In-House (or) Service Provider Trunk fibre Point of Presence Fibre Cable head end Encoding & Mux CAS Cable/telco network Cable/IPTV Consumer 69

70 D1 Standard National Broadcaster Distribution In this case, the broadcaster feeds its signal directly to the TV distribution platforms within their country. The channel is played out from the playout centre and carried by fibre to the platforms head ends. Terrestrial DTT Transmission The national broadcaster may own and manage its own dedicated multiplex(es) or may provide its channel to a third-party multiplex operator. In the former case, the broadcaster may operate its own coding and mux facility, or may contract this with a service provider. This may be part of the playout centre. Satellite DTH Transmission The national broadcaster may lease and manage its own transponder(s), or may use capacity provided by a third-party transponder operator. In the former case, the broadcaster may operate its own coding, mux and uplink facility, or may contract this with a service provider. In the latter case, the third-party operator will multiplex the channel with others. Cable/IPTV Distribution The broadcaster provides the channels via a fibre to the cable/iptv operator s head end. In hybrid IPTV platforms, distribution of the channel is via DTT. ARD is unique, having its own cable coding/mux. This model is counted as Direct Injection when the TV channel is delivered to a pay TV platform. 70

71 D2 Standard Distribution with Overseas Playout Centre Point of Presence Fibre Encoding & Mux CAS DTH satellite Trunk fibre Country B Satellite operator Uplink Free/Pay DTH Consumer Point of Presence Country A Playout Centre Broadcaster In-House (or) Service Provider Fibre Point of Presence Trunk fibre Point of Presence Fibre Encoding & Mux Broadcaster or Service provider Tower operator Cable head end Encoding & Mux CAS Cable/telco network Free DTT Consumer Cable/IPTV Consumer 71

72 D2 Standard Distribution with Overseas Playout Centre A variation of D1, in this case, the playout centre is located in a different country from the target country for the channel. This may be for regulatory purposes. For example RTL plays out its channels for Netherlands, Belgium, Hungary and Croatia from the BCE in Luxembourg. This means RTL enjoys a more lenient regulatory model and can offer more advertising than otherwise allowed in NL/BE. This model may also be used for convenience for example, French national channel operator Groupe AB also plays out from BCE, and AMC s Iberian channels for Spain and Portugal are all originated in Madrid. Terrestrial DTT Transmission The playout centre provides the channels via a fibre for coding and multiplexing, and on to the transmitters. Satellite DTH Transmission Similar to case D1. Coding, but multiplexing and uplinking is usually in the playout country. Cable/IPTV Distribution The playout centre provides the channels via a fibre to the cable/iptv operator s head end. This model is counted as Direct Injection when the TV channel is delivered to a pay TV platform. This is usually the case for the channels involved. 72

73 D3 Full International Distribution Satellite operator N Point of Presence Fibre Encoding & Mux CAS Satellite operator 1 Uplink DTH satellite Pay DTH Consumer Country A Fibre Trunk fibre Point of Presence Point of Presence Cable operator N Cable head end 2 Encoding & Mux CAS Country B, C, D Cable/telco network Cable/IPTV Consumer Playout Centre Broadcaster In-House (or) Service Provider Trunk fibre Point of Presence Teleport (uplink) Contribution satellite Cable operator N Cable head end 1 Encoding & Mux CAS Country E, F, G Cable/telco network Cable/IPTV Consumer 73

74 D3 Full International Distribution This model underpins the distribution of major international TV channel brands to multiple operators across Europe. Multiple versions of the channel originate from a playout centre, often in London or Amsterdam. A network of fibres and contribution satellites distributes the channels to pay TV operators in multiple countries. In most cases, operators retransmit these channels unchanged. In some cases, operators will use additional equipment at the head end to insert additional local content (e.g. advertisements) This model is almost always Direct Injection, except in the handful of cases where international channels appear on a free-to-air (usually DTT) platform. 74

75 D4 Operator Distribution Playout Centre Operator In-House Encoding & Mux CAS Satellite operator Uplink DTH satellite Pay DTH Consumer Country A OR Playout Centre Operator In-House Cable head end Encoding & Mux CAS Cable/telco network Cable/IPTV Consumer 75

76 D4 Operator Distribution In many cases, pay TV operators run their own channels for example, Sky Europe runs many channels such as Sky One or Challenge TV. In this model, the playout centre is typically part of the operator s own head end or uplink facility. The channels are played out and immediately inserted into the operator s own distribution system, alongside those channels carried from external broadcasters. In many cases, operator channels are distributed on other platforms as well either competing platforms in the same country, or platforms in other countries. In this case, the operator is also using model D5, Proactive Distribution for this secondary distribution. This model is not Direct Injection as the operator is playing out and distributing their own channels i.e. there is no third party involved. 76

77 D5 Proactive Redistribution Point of Presence Country B, C, D Country A Fibre Point of Presence Cable/IPTV Consumer Playout Centre Broadcaster In-House (or) Service Provider Trunk fibre Point of Presence Teleport (uplink) Contribution satellite Cable operator N Cable head end 1 Encoding & Mux CAS Country E, F, G Cable/telco network Cable/IPTV Consumer 77

78 D5 Proactive Redistribution This model is similar to D3 International Distribution, except that the channel is primarily targeted at a particular country and distribution in additional countries is a secondary activity. As such the primary distribution in Country A uses model D1, D2 or D4, with distribution in other countries using model D3. This model is different from D6, insofar as the originating broadcaster is taking an active decision to distribute its channel in additional markets, and has agreed carriage deals and appropriate content rights to be able to do so. The channel may be distributed directly from an uplink in Country A. Or it may be distributed on fibre to head ends and uplink teleports in other countries. In most cases, these channels are redistributed as is. In some cases, the originating broadcaster will create slightly different versions for example with localised advertisements, or the removal of some content where rights are not available in the secondary country. This model is almost always Direct Injection, except in cases where the redistributed channels appear on a free-to-air (usually DTT) platform. 78

79 D6 Passive Redistribution DTH satellite // Playout Centre Broadcaster In-House (or) Service Provider Satellite operator Encoding & Mux CAS Teleport (uplink) Original Distribution via D1 Standard National Broadcaster Distribution Promoted Overspill Pay DTH Consumer Country A Cable retransmission Country B Cable head end Encoding & Mux CAS Cable/telco network Cable/IPTV Consumer 79

80 D6 Passive Redistribution Cable Retransmission In this case, the original broadcaster is not involved in the subsequent redistribution of its channel. It applies only in the case of a free-to-view satellite DTH signal being available in Country A. As such this model applies only to national public-service and commercial broadcasters. The original off-air signal is received using a professional satellite receiver by the TV platform (usually a cable TV platform) making the retransmission in Country B. Example: BBC, ARD and France Télévisions channels redistributed on cable in NL and BE. This model is never Direct Injection. Promoted Overspill A variation on cable retransmission, this model applies to satellite platforms. A consumer in Country B picks up the original free-to-air signal directly on their DTH satellite receiver. This is a result of the overspill of most satellite transmissions covering a wider territory than just the target Country A. The DTH operator in Country B actively promotes the availability of the additional channels, assigns a channel number and includes them in the EPG. Example: BBC, ARD and France Télévisions channels redistributed on satellite in NL and BE. 80

81 Additional Edge cases Some cases do not map precisely to the standard models. These are noted here for completeness. Platform marketing brands (e.g. Freesat, Freeview, Saorview, Tivù Sat Italy). These are marketed as pseudo-operators by a consortium of broadcasters. The platforms contain free-to-view channels, but may provide a programme guide, or common standards for receiver equipment. Free-but-encrypted. In the case of Tivù Sat, channels provided by Mediaset are encrypted, and viewers must purchase a one-time access card, even though there is no subscription element. Free-but-pay. Some previously free-to-view channels are becoming pay TV on some platforms. For example, DTT channels on KPN s Digitenne platform in the Netherlands, or the HD versions of RTL and ProSieben on DTT and DTH satellite in Germany. Free on some platforms. Some channels can be free on some platforms but pay, or missing altogether, on others. E.g. ProSieben is available free to DTH subscribers in Belgium by Promoted Overspill but was removed from cable due to disagreement over carriage fees. Hybrid IPTV boxes in France, Italy, Spain, UK where the main channels on the platform are distributed by DTH, as part of an overall IPTV service. Must-carry rules, where and operator is obliged to include national/psb channels and provide an EPG listing and prominent channel number. Managed OTT platforms with subscription options run by playout centres for their broadcaster clients. Online streamers. Internet platforms like TVPlayer that redistribute free-to-air channels via OTT. 81

82 TV Distribution Combinations 82

83 TV Distribution Combinations In this section the link between channels, distribution business models and platform operators is made, providing the core model used to define which channel-operator paths may be considered Direct Injection. For each combination, the analysis considered: Type of channel (see slide); Type of distribution model (see slide); Location of the playout centre; Type and location of the TV distribution platform. This allows every combination of channel and platform to be mapped, including: Whether or not it is a Broadcast or Retransmission ; Whether or not it is cross-border distribution; Whether or not it can be considered Direct Injection. This analysis was based on detailed examination of Ampere Channels and Operators data, triangulated with research and interviews from industry sources involved in channel distribution. 83

84 Playout Centre Location TV Platform Location TV Distribution Combinations Channel Type Distribution Model Platform Type C1 National PSB D1 Standard National Pay TV Cable C2 National Commercial C3 Intern l Channel Group C4 Operator Channel Group D2 Overseas Playout Centre D3 Full International D4 Operator Distribution Pay TV IPTV Pay TV Satellite Pay TV Terrestrial C5 National Channel Group D5 Proactive Redistribution D6 Passive Redistribution Free Satellite Free Terrestrial 84

85 Example 1: ARD Das Erste (Germany) Das Erste is a public-service channel distributed directly to ARD s own DTT and DTH multiplexes, free-to-air (Type C1). As such, these platforms are broadcast, and not DI. ARD also feeds major cable and IPTV platforms (pay TV) directly via DI (Model D1). Playout centre and distribution are within Germany. Off-air redistribution by smaller cable companies in Germany (not DI) Passive redistribution by platforms in other countries (not DI) (Model D6) 85

86 Example 2: Discovery Channel (Origin UK) Discovery Channel is a premium pay TV channel played out from the UK and widely distributed on pay TV platforms (Type C3). Like most international channels, multiple versions of Discovery Channel, with different languages, content, advertising and SD/HD variants are distributed to different EU countries from a central playout centre. International distribution is via fibre and contribution satellite (Model D3). Discovery Channel is Direct Injection distribution to all platforms on which it appears. 86

87 Example 3: Groupe AB (France) Groupe AB is a National Channel Group (Type C5) targeting France. There is redistribution to adjacent countries (e.g. Belgium, Lux.) Playout is from the BCE in Luxembourg. Distribution to cable, IPTV and satellite platforms in France is via fibre/contribution satellite (Model D2). Proactive Redistribution by fibre/ contribution satellite to operators in other markets (Model D6). 87

88 Data Spreadsheet The accompanying spreadsheet includes analysis of 8410 channeloperator distributions. Each line on the sheet represents an individual feed of a channel brand to an operator. Data includes: Channel type, owner and brand Operator type, owner, free/pay Locations of playout centre, channel target audience, operator Distribution model used Calculations of Broadcast / Retransmission National/ cross-border Direct Injection (or not) 88

89 Distribution Case Studies 89

90 Distribution Case Studies In this section, several real-world examples of specific channel-operator distribution scenarios are provided with block diagrams. This demonstrates how particular channel owners are distributing their channels in a particular market, and highlights how operators are receiving them. It includes case studies from ARD in Germany, RTÉ and Liberty Global in Ireland, NBCUniversal s international channels, Canal+ in France and two channel aggregator service providers, M7 KabelKiosk and Ericsson Channel Store. This analysis was based on detailed examination of Ampere Channels and Operators data, triangulated with research and interviews from industry sources involved in channel distribution. 90

91 Germany / ARD Astra 19.2E Standard National Broadcaster Distribution + Passive Redistribution Network ARD programmes are played out from Berlin. ARD manages its own national fibre network converging at the Starhub in Frankfurt. The Starhub also manages coding and multiplexing for cable and satellite uplinks. Satellite uplinks for DTH (free-to-air, unencrypted) are primarily from Langenberg, plus the playout centre and Starhub, to Astra satellites at 19.2E. ARD is unique in managing its own cable multiplex, provided directly to the major cable/iptv platforms in Germany (Kabel Deutschland, Unity Media, DT). More than 500 small cable platforms retransmit the off-air DTH satellite feed. ARD members manage coding and multiplexing for DTT services in their region, on two DTT multiplexes (one further multiplex is allocated to ZDF, and three are operated on a commercial pay TV basis for national and international commercial channels). ARD channels are passively redistributed via DTH in Austria, Belgium, Netherlands and Luxembourg as well as other markets. DTH NDR Hamburg *Example* DTT multiplexing WDR Langenberg Teleport Uplink HR Frankfurt ARD Starhub To cable/iptv head ends RBB Berlin ARD Playout Centre 91

92 Ireland / RTE / Liberty Global / Sky Eutelsat 9E Astra 28.2E Standard National Broadcaster Distribution + Proactive Redistribution Channels from public-service broadcasters RTÉ and TG4, and commercial channel TV3 are delivered by fibre to RTÉ-owned 2RN distribution company. Here channels are distributed via free-to-view DTT (branded Saorview) and free-to-view satellite (branded Saorsat). RTÉ channels are also distributed by fibre to the Virgin Media (Liberty Global) cable head end in Dublin. This is linked by fibre to Virgin Media in the UK, enabling RTÉ and TG4 to be distributed to cable customers in the UK, and for UK channels such as the BBC and ITV to be carried in Ireland. DTH DTH DTH Belfast Virgin Media Dublin Headend A direct fibre from RTÉ to Sky in the UK enables RTÉ s channels to be carried on Sky s DTH platform which is available to Irish subscribers. Channels from Northern Ireland, including UTV and BBC Gaelic are supplied by fibre to the Virgin Media head end in Dublin. The Saorsat free-to-view satellite platform is operated by RTÉ, carrying only the free-to-view public and commercial channels. An off-air feed of some channels is distributed on three Northern Ireland DTT transmitters via a dedicated so-called mini multiplex. From TV3, TG4 RTÉ Donnybrook Playout Centre 2RN Cookstown DTT/DTH headend Virgin Media UK Sky UK RTÉ channels are also supplied by fibre to Eircom s IPTV service. Mainland UK sites not shown in correct location 92