1929 Birth of Cable. [meeting] [date] Page 1

Transcription

1 1929 Birth of Cable Page 1

2 Evolving through 55 years of TV TV 1.0 B/W TV 1.1 PSB Colour TV 1.2 Commercial Multi Channel TV 2.0 Digital Revolution Page 2

3 Cable Evolution Consumer Demand Intensity of Competition Cable Evolution Technology defined consumer decisions Convergence and customer care consumer decisions Brand, lifestyle, convenience consumer decisions Page 3

4 Some of us loose it Page 4

5 But are they lost too? Source : Discovery Educator Network Page 5

6 Convergence everywhere Satellite, Cable, IPTV Tru2Way STB/ PVR Widget Portale Hybrid-STB (TiVo) Open Box DVD-Player Game Console Broadband STB Desktop PC DVB-H / DMB Internet Mobile TV Smartphones ipad Source: Bitkom, TNS Infratest 2009, Typologie der Wünsche, Booz & Company analysis Page 6

7 Who is on top of who? Page 7

8 2011 Innovating Digital Interactive Page 8

9 So what do we do? More VoD Easy to use More Web Link Home Smart user interface Strong Customer Care Page 9

10 Still 40 m analogue customers to go! At 21 m digitization is gaining pace, but still a good runway Analogue vs. Digital Cable TV Customers 29% 35% 71% 65% Analogue Digital Analogue Digital Note: Based on Gartner data until 2012; based on extrapolation of Gartner overall growth and segment penetration evolution trend lines Source: Gartner 2008 (Dataquest Insight: The Future of Residential Broadband Internet Access Speeds) Source: Screen Digest: YE 2009 EU 27 Page 10

11 Size matters Who are the big guys? 275bn market with many competitors +5% Western European Telco Revenues 2009 (in Bn ) % other Telia Sonera Bouygues Telecom Hutchison 80% KPN Vivendi / SFR 60% 40% 20% 0% Telecom Italia Deutsche Telekom Telefonica Orange Vodafone Mobile +3% Fixed Note: TV includes cable TV, satellite TV, terrestrial TV, and IPTV Countries included AT, BE, DK, FI, FR, DE, GR, IE, IT, NL, NO, PT, ES, SE, CH, UK (mobile, fixed and bb) AT, BE, DK, FI, FR, DE, IE, IT, NL, NO, PT, ES, SE, CH, UK (TV) Sources: IDC, Informa, Annual Reports, Booz & Company analysis 74 other Belgacom Swisscom OTE BT Telia Sonera KPN Telecom Italia Deutsche Telekom Telefonica Orange -4% 49 other Telenor Neuf Liberty Global Virgin Media Belgacom BT Telia Sonera KPN Telecom Italia Deutsche Telekom Telefonica Orange +5% Internet / Broadband 25 other ono Ziggo Numericable KDG Canal+ Sky Liberty Global Virgin Media TV Growth (CAGR) Page 11

12 Putting all assets along the whole value chain into scope enables a differentiated view of the topic Germ Ireland 100 Mbps Q4 Hungary 120 Mbps Page 12

13 Five typical business models can be identified which all apply different degrees of openness to their assets Distribution- centred Aggregation- centred Search- centred Community- centred Device- centred "Consumerperceived openness" "Closed" "Open" "Open" "Open" "Closed" Germ Open Ireland 100 Mbps IP capacity Search services Community platform Actual Degree of openness Managed transport 1 Platform/STB TV channel Ad sales Auxiliary products 2 Ad platform Content Ad platform Content platform 3 Ad platform Closed Sales channel Customer data Content/distr. rights Austria Sales channel Mbps Customer data Search algorithm User data User data Sales channel Device/OS 1. E.g. in cable DVB-C, satellite DVB-S 2. OS, Mail, Maps, etc. 3. E.g. itunes, App Store 4. Pay TV Source: BCG Analysis = Key assets Page 13

14 and models perceived as closed have created great economic value and innovative content and consumer services 60 Cumulative unit shipments (M) 50 Germ 40 Ireland 100 Mbps Hungary Q1 Q2 Q3 Austria 120 Mbps Q4 Q5 Q6 120 Mbps Q7 Q8 Q9 Q10 Quarters since launch Source: Apple; Nintendo; Sony; RIM; Katy Huberty; Morgan Stanley Research Page 14

15 Shift in dynamics can also be recognized in the growth rates of the different player types Germ Ireland 100 Mbps Austria 120 Mbps Page 15

16 Growing the Digital Ecosystem Our business becomes like any other Our customers are loosing interest in technology itself They focus on the brand, convenience, customer care Hence, we are fast accelerating Interactive DTV and broadband Cooperate with broadcasters, brands, services, apps, OTT Constant search to improve the experience Page 16