Mediaset Presentation for Nagra Apr08
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Transcript of Mediaset Presentation for Nagra Apr08
0
Pay DTT in Italy
Madrid, 24 April 2008
1Source: BAH Analysis
Table of contents
�Pay DTT: just another pay TV platform in Italy?
�The importance of iDTV and CAMs availability for future growth in
Italian DTT
2
Pay TV market strategy in Italy: newcomers needed a different approach from the incumbent
Main features of traditional Pay TVs Implications for operators and subscribers
Source: BAH Analysis
� Entertainment
� Cartoons
� Documentary
� News
� Sport
� …
� Major sport events
� TV first run of Movies
� TV Series
� Reality shows
� …
Pay TV Operators
Clients� Costly monthly subscription
– Fees are independent from time
spent watching TV
– Clients pay for a wide offer but are
actually interested in a small portion
of it
Multi-channel
PremiumEvents
� High TV programming costs for
maintaining the wide multi-channel offer
� Costly back-office systems for client
management and billing
– Large call-center
– Complex and expensive SMS / billing
system investments
� High acquisition costs (discounts,
decoder & installation incentives, …)
3
Mobile phone market demonstrated that a low-cost prepaid offering can boost sales, in order to reach the mass market
TargetTarget
Before 1998 After 1998
High-spender, business and niche private market
High-spender, business and niche private market
Mass market(private and business)
Mass market(private and business)
Service Description
Service Description
Subscription compulsorySubscription compulsoryPrepaid pay-per-
consumption no subscription required
Prepaid pay-per-consumption
no subscription required
PricingPricing High cost per minute High cost per minute Low cost per minute(recharges available for € 3)
Low cost per minute(recharges available for € 3)
Scratch card used to recharge mobile phones
in Italy
PenetrationPenetration LowLow High (~100% penetration)
High (~100% penetration)
Mobile Phone Market in Italy
Source: BAH Analysis
4
Mediaset identified an innovative positioning in the DTT Pay TV market, complementary to the one of the incumbent, based on the open horizontal DTT platform
Source: BAH Analysis
SUBSCRIPTIONSUBSCRIPTION
PAY PER VIEWPAY PER VIEW
FREEFREE
Ca.Ca. 1010
NATIONAL CHANNELS
30 30 –– 6060 100 +100 +
Platform Positioning
DTT
Satellite
and IPTV
Analogue Terrestrial
CO
ST
PE
R U
SE
R
5
…developing a pay-per-view offer, based on re-chargeable pre-paid smart cards
DTT Pay TV Model – Pay per View
Purchase of smart cards at shops or large distributors (like mobile phone rechargeable cards)
Card Recharge (using scratch card and/or virtual voucher)
1
3
Periodic replacement of cards after expiry date
4
2
Pre-paidsmart card
Access to pay-per-view content by decreasing the credit on the card by Set Top Box
6
In summary, low-cost pay-per-view offers advantages to both TV operators and users
� Limited Investments: Pay TV operators invest only on key premium content TV
rights, without sustaining the cost of a multichannel offering
� Simpler and cost effective customer management in respect to traditional pay-TV operators: events are purchased through a pre-paid card - which enables
to buy content “locally” with credit / debit stored in the smart card - avoiding to
implement complex billing systems
� High volumes: the low cost model has the potential to reach the mass market
Advantages for broadcasters and final users
BroadcastersBroadcasters
ClientsClients
Source: BAH Analysis
� Flexible, cheap and user friendly offer:
– No subscription
– Pay-per-consumption
– Possibility to choose only “valuable content”
– Low pricing of smart cards and flexible recharge
– Plug and Play hardware (no Sat dish, no cables, …)
7
Mediaset Premium has reached 2.5 million Smart Cards activated by December 2007 …
(1) Net data (excluding Smart Card expired in june 2007)
Source: Mediaset
Smart Cards Premium Sold (1)
(2004-2007, ‘000 Smart Cards)
Dec ‘07
Smart Card sold to Retailer Smart Card activated/recharged by clients
Active Smart Cards Premium (1)
(‘000 Smart Cards)
2,500
2,7952,574
1,436
0
Dec ‘04 Dec ‘05 Dec ‘06 Dec ‘07
8
95%
Other
5%
Advertising
Mediaset Total Revenues 2001
2,351.1 Mio/Euro
Mediaset Total Revenues 2007
3,002.1 Mio/Euro
83%
Other (including Pay TV)
17%
Advertising
… creating new value for the company
9Source: BAH Analysis
Table of contents
�Pay DTT: just another pay TV platform in Italy?
�The importance of iDTV and CAMs availability for future growth in
Italian DTT
10
IDTVs will be the driver of future DTT growth
3% 8%
71%
37%
26%
55%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
4Q'06 4Q'07
IDTV
STB MHP
Zapper
1.114.559431.694
Total DTT Receivers Sales
(comparison 4Q’06 vs. 4Q’07)
Fonte: DGTVi, GFK, Analisi BAH
CommentsComments
� In the last year the IDTV diffusion
experienced a boom, today more
then half of DTT receivers sold is
constituted by iDTVs
– iDTVs are the main driver for future DTT mass diffusion
� Is the set top box the only way to
grant operators and viewers,
access to pay per view content?
� In the last year the IDTV diffusion
experienced a boom, today more
then half of DTT receivers sold is
constituted by iDTVs
– iDTVs are the main driver for future DTT mass diffusion
� Is the set top box the only way to
grant operators and viewers,
access to pay per view content?
11
With the growth of the iDTV market, the Conditional Access Module is strategic for DTT pay service’s diffusion
CommentsComments
� The availability of CAMs for Pay TV reception on iDTVs is strategic for DTT diffusion:
– iDTVs will be the driver of future DTT growth
– Premium contents offering has been in Italy a key driver to increase DTT penetration
� Italian DGTVi labelling program has already delivered the first results:
– On March the 15th, the first CAM developed by SmarDTV was marketed in Italy
– In the last months, many iDTV manufacturers have ordered CAMs to be bundled with their iDTVs
� The availability of CAMs for Pay TV reception on iDTVs is strategic for DTT diffusion:
– iDTVs will be the driver of future DTT growth
– Premium contents offering has been in Italy a key driver to increase DTT penetration
� Italian DGTVi labelling program has already delivered the first results:
– On March the 15th, the first CAM developed by SmarDTV was marketed in Italy
– In the last months, many iDTV manufacturers have ordered CAMs to be bundled with their iDTVs
Conditional Access Module ILLUSTRATIVE
ILLUSTRATIVE
12
CommentsComments
� DGTVi has already certified major TV manufacturers:
– SAMSUNG
– PANASONIC
– TELEFUNKEN
– FINLUX
– INNO HIT
� The DGTVi trademark is widely present on the shelves, > 40% of the iDTV market is in the program
� Manufacturers involved in the labelling program accept to add MHP to their iDTV by the end of 2009, becoming eligible for the “full”trademark
� DGTVi has already certified major TV manufacturers:
– SAMSUNG
– PANASONIC
– TELEFUNKEN
– FINLUX
– INNO HIT
� The DGTVi trademark is widely present on the shelves, > 40% of the iDTV market is in the program
� Manufacturers involved in the labelling program accept to add MHP to their iDTV by the end of 2009, becoming eligible for the “full”trademark
iDTV trademark: only pay TV (Common Interface + CAM)
DGTVi associates will promote all DGTVi trademarks on their networks
and will not develop any commercial initiatives with companies not enrolled in the program
Under discussion…
Major TV Set requirements:
DTT Tuner for free TV,
Common Interface for Pay
TV(+ bundled CAM
options)
Italian DGTVi has issued a trademark to certify iDTVs compliancy to Pay TV through compatible CAMs