The New TV World. Horst Peiffer Principal Consultant
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1 The New TV World Horst Peiffer Principal Consultant 8-5-3
2 Find answers to the most relevant questions about IPTV, Web TV, and Mobile TV. What are the critical success factors for the new TV services? Who is in the driver s seat? How are the investments re-financed? What are the main barriers? And what will consumers get more quality or quantity? CeBIT Presentation
3 Others Participants were Content providers Broadcasters (commercial & public) Network operators (mobile & fixed) Cable & satellite operators IT companies Universities Consulting companies Handset manufacturer Switzerland BeNeLux n=49 Germany Content providers TV Broadcasters (blue = commercial, grey = public) Network operators (mobile, fixed) Cable or satellite companies Others (IT Others (IT companies, companies, univer- academic, sities, consul- consultancies) tancies) A broad spectrum of complete value chain representatives was interviewed CeBIT Presentation 3
4 Fixed/mobile operator Fixed/mobile operator Industry body Public broadcaster Public broadcaster MWC marketing wireless consulting Specialized TV channel CeBIT Presentation 4
5 Critical success factors (IPTV / Web TV) Convenience/ usability (installation and handling) Winning proposition (attractiveness of offer) Consumer service pricing Marketing and communication for the service Transmission quality Time shift/ PVR functions Coverage and reach Customer care quality Strategic alliances (e.g. with brands for marketing) Legal aspects Access to on-demand content Penetration of consumer hard- and software Numbers indicate means on 5 point rating scales: 1 unimportant, 5 very important 1, 1,5,,5 3, 3,5 4, 4,5 5, Success is mainly in the IPTV / Web TV service providers hands CeBIT Presentation 5
6 Convenience/ usability (installation and handling) Penetration of capable handsets Consumer service pricing Winning proposition (attractiveness of offer) Coverage and reach Format adaptation (content mix and device adaptation) Critical success factors (Mobile TV) Marketing and communication for the service Strategic alliances (e.g. with brands for marketing) Transmission quality Legal aspects Access to on-demand content Consumer hard- and software cost Numbers indicate means on 5 point rating scales: 1 unimportant, 5 very important 1, 1,5,,5 3, 3,5 4, 4,5 5, Success for Mobile TV is more technology dependent CeBIT Presentation 6
7 Operators and technology providers should be in the driving seat for IPTV and Mobile TV Content & media companies should drive Web TV Others, e.g. print media looking for new markets Main drivers for IPTV Operators in general Cable companies Broadcasters Content providers Platform providers Advertisers Mobile operators Other The operators have an important role CeBIT Presentation 7
8 Content providers are most optimistic Operators and cable/satellite operators are very cautious Figures indicate number of answers Total Content providers Broadcaster (public) Broadcasters (private) Operators Cable/ satellite companies Other zero or decrease 1 4 up to up to up to more than Total Those with close customer contact know the pitfalls of overestimating customers willingeness to pay CeBIT Presentation 8
9 In terms of (co-)financing a service, what is the share of revenues advertising could contribute in percent Content providers and broadcasters are optimistic Operators and cable/satellite companies are cautious IPTV WebTV MobileTV content providers 3,5% 55,8% 8,3% broadcasters 47,% 75,%,% public broadcasters 1,4% 71,4%,7% operators 14,3% 56,4% 13,5% cable & satellite companies 5,4% 33,6% 17,5% other 55,% 66,4% 47,5% Experts expect significant revenue contribution not within the next 4 years CeBIT Presentation 9
10 From your experience, does the technical and/or business complexity hinder the success of new TV models so far? Technical 19% Business 3% No 6% Numbers indicate the percentage of the sample who agreed or declined the statement Yes, not specified 8% Both technical & business 17% Complexity is seen as an overall barrier IPTV specific barriers are Quality compared to traditional TV is inferior No convincing marketing message yet Web TV specific barriers are Business models are inadequate or unattractive Good DRM missing Viewing situation (at the desk) inconvenient for entertainment Mobile TV specific barriers are Lack of appropriate content Business models are barrier rather than an enabler There are still many barriers CeBIT Presentation 1
11 Consumers will definitely get more quantity Hundreds of channels Long tail content Quality is still an issue VoD is seen as promising for IPTV The value of interactivity is disputed Made for Mobile content is scarce and expensive to produce There is no quality control in Web TV, without DRM Web TV stays in a illegal corner There will be more content but not necessarily better content CeBIT Presentation 11
12 Original quotes Getting money from advertisers Media industry is facing radical changes it s about new positioning Going for content as a survival strategy Erosion of the main business Customer quotes Saturation of existing markets Fear to miss the train Fear of the bit pipe Defend own strategy against new players (cable companies) CeBIT Presentation 1
13 IPTV and Mobile TV as leading edge technologies will pay back by boosting brand value and customer retention rather than quick revenues It s a long term investment are expected after 4 years substantial revenues from IPTV, Mobile TV and Web TV Convenience/usability is seen as the most important Key Success Factor for the new TV services Before advertising will significantly contribute to IPTV or Mobile TV new models need to be developed Operators and cable companies are seen as main drivers for IPTV and Mobile TV Content Providers push Web TV With a striking USP IPTV will make the race in a short term After finishing the technical and license discussions it is time to turn to developing attractive Mobile TV content Web TV has a lot of potential but is riddled by illegal content and unclear business models Mass market or early adoption new TV services the right marketing strategy is needed to push the CeBIT Presentation 13
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