HD & 3D TV in Europe. SES ASTRA market update for customers. Commercial Strategy & Planning - Media, August 2010
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1 HD & 3D TV in Europe SES ASTRA market update for customers, August 2010
2 Table of content Introduction HD screen sales HD channels HD viewers 3D TV Executive Summary Actual HD ready screen sales (until June 2010) HDTV Forecasts - Europe: HD ready TV sets HD channels HD viewing 3D TV prospects Appendix 2
3 Executive summary Europe Introduction HD screen sales HD channels HD viewers 3D TV Current situation More than 150 million HD ready TV sets sold since out of 2 European TV homes is equipped with a HD ready screen Every flat screen sold to date is HD ready The average price of HD ready TV s declined to almost HD channels on Astra Forecast % of TV homes to be HD ready (equipped with HD screen) 76 million HD viewers in Europe thereof 34 million on satellite Every 2 nd satellite homes will be viewing HD programming 3
4 HD screen sales HD ready screen sales in Europe, September 2005 June
5 Jan 10-Feb 10 Mar 10-Apr 10 May 10-Jun 10 Sales of HD ready screens in Europe More than 150 million HD ready TV sets sold by mid-year Units flat screens ('000,000s) Nov 09-Dec 09 Sep 05-Oct 05 Nov 05-Dec 05 Jan 06-Feb 06 Mar 06-Apr 06 May 06-Jun 06 Jul 06-Aug 06 Sep 06-Oct 06 Nov 06-Dec 06 Jan 07-Feb 07 Mar 07-Apr 07 May 07-Jun 07 Jul 07-Aug 07 Sep 07-Oct 07 Nov 07-Dec 07 Jan 08-Feb 08 Mar 08-Apr 08 May 08-Jun 08 Jul 08-Aug 08 Sep 08-Oct 08 Nov 08-Dec 08 Jan 09-Feb 09 Mar 09-Apr 09 May 09-Jun 09 Jul 09-Aug 09 Sep 09-Oct 09 Source: GfK Retail and Technology, June 2010 Type of Screens: LCD, Plasma, Rear projection Countries: AT, BE, CZ, DK, FL, FR, DE, GR, HU, IT, NL, PL, PT, SK, ES, SE, CH, UK
6 Sales of HD ready screens in Europe 99% of all flat screens sold to date are HD ready 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Eur ope Nov 09-Dec 09 Jan 10-Feb 10 Mar 10-Apr 10 May 10-Jun 10 6 In % of all plasma, LCD and rear pro period Sep 05-Oct 05 Nov 05-Dec 05 Jan 06-Feb 06 Mar 06-Apr 06 May 06-Jun 06 Jul 06-Aug 06 Sep 06-Oct 06 Nov 06-Dec 06 Jan 07-Feb 07 Mar 07-Apr 07 May 07-Jun 07 Jul 07-Aug 07 Sep 07-Oct 07 Nov 07-Dec 07 Jan 08-Feb 08 Mar 08-Apr 08 May 08-Jun 08 Jul 08-Aug 08 Sep 08-Oct 08 Nov 08-Dec 08 Jan 09-Feb 09 Mar 09-Apr 09 May 08-Jun 09 Jul 09-Aug 09 Sep 09-Oct 09 Source: GfK Retail and Technology, June 2010 Type of Screens: LCD, Plasma, Rear projection Countries: AT, BE, CZ, DK, FL, FR, DE, GR, HU, IT, NL, PL, PT, SK, ES, SE, CH, UK
7 Sales of HD ready screens in Europe The average price of HD ready screens declined to 537 in June 2010 Full HD screens sell at a premium of up of 100% 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Average Price HDTV Average Price Full HD Average Price HD Ready only 7 Average price in Euro May 10-Jun 10 Sep 05-Oct 05 Nov 05-Dec 05 Jan 06-Feb 06 Mar 06-Apr 06 May 06 - Jun 06 Jul 06 - Aug 06 Sep 06-Oct 06 Nov 06-Dec 06 Jan 07-Feb 07 Mar 07-Apr 07 May 07-Jun 07 Jul 07-Aug 07 Sep 07-Oct 07 Nov 07-Dec 07 Jan 08-Feb 08 Mar 08-Apr 08 May 08-Jun 08 Jul 08-Aug 08 Sep 08-Oct 08 Nov 08-Dec 08 Jan 09-Feb 09 Mar 09-Apr 09 May 09-Jun 09 Jul 09-Aug 09 Sep 09-Oct 09 Nov 09-Dec 09 Jan 10-Feb 10 Mar 10-Apr 10 Source: GfK Retail and Technology, June 2010 Type of Screens: LCD, Plasma Countries: AT, BE, CZ, DK, FL, FR, DE, GR, HU, IT, NL, PL, PT, SK, ES, SE, CH, UK
8 Sales of HD ready screens in Europe Screens larger than 39 inches raised their share, representing now about 30% of units sold 100% 80% 40 inch and more 60% inch 40% inch 20% 0% Source: GfK Retail and Technology, June 2010 Type of Screens: LCD, Plasma Countries: AT, BE, CZ, DK, FL, FR, DE, GR, HU, IT, NL, PL, PT, SK, ES, SE, CH, UK 8 Share of flat TV screen sizes up to 26 inch Jan 06-Feb 06 Mar 06-Apr 06 May 06 - Jun 06 Jul 06-Aug 06 Sep 06-Oct 06 Nov 06-Dec 06 Jan 07-Feb 07 Mar 07-Apr 07 May 07-Jun 07 Jul 07-Aug 07 Sep 07-Oct 07 Nov 07-Dec 07 Jan 08-Feb 08 Mar 08-Apr 08 May 08-Jun 08 Jul 08-Aug 08 Sep 08-Oct 08 Nov 08-Dec 08 Jan 09-Feb 09 Mar 09-Apr 09 May 09-Jun 09 Jul 09-Aug 09 Sep 09-Oct 09 Nov 09-Dec 09 Jan 10-Feb 10 Mar 10-Apr 10 May 10-Jun 10
9 Sales of HD ready screens in Europe More than 5 million flat screens sold in Europe by June 2010 have web access Sales units Connected TV's Nov 08-Dec 08 Jan 09-Feb 09 Mar 09-Apr 09 May 09-Jun 09 Jul 09-Aug 09 Sep 09-Oct 09 Nov 09-Dec 09 Jan 10-Feb 10 Mar 10-Apr 10 May 10-Jun 10 Source: GfK Retail and Technology, July 2010 Type of Screens: LCD & Plasma 9
10 HD channels HD channel growth prospects in Europe 10
11 HD channel growth on ASTRA ASTRA HD channel development and forecast Channels Expected +50 new channels Expected +50 new channels Expected +50 new channels August 2010: 148 HD channels on ASTRA Year End 11
12 HD growth pillars business models HD on ASTRA tends to appear first in premium pay TV offers, followed by public and private FTA* Public broadcaster Private TV (encrypted) Private TV (FTA) Pay TV YE 2009: Total of 37 Sky HD channels *FTA = Free-to-air German speaking UK France Spain Nordics Benelux CEE 12
13 HD pay TV platforms Increasing HD channel offering strengthens HD subscriber growth HD subscribers 3,000k Pay TV platform Minimum cost of access HD STB activation HD add-on fee p.m. HD channels HD subs 2,500k UK Deutschland 6 p.m ,000** Free ,000** 2,000k UK Free Free ,939,000* 1,500k 149 Free ,000** 1,000k Free Free ,000** 500k 3,95 p.m ,000** Free ,000** HD channels Source: * Company figures **Industry estimates according to Screen Digest TV Intelligence Database, July 2010 and Dataxis Quarterly Statistics, 2Q
14 Sky+HD customer growth Strong uptake elasticity from choice of content (44 HD channels) and free Sky+HD box High demand for HD supported by the 2010 World Cup campaign 3,000 44* 45 2,500 Sky+HD customers HD channels Number of Sky+HD subscribers 2,000 1,500 1, Source: BSkyB Quarterly Results, Q4 2009/2010 *BSkyB launched its 50th HD channel and surpassed 3 million HD subscribers as of 1st September ,313 2,082 2,939* MY-2006 YE-2006 MY-2007 YE-2007 MY-2008 YE-2008 MY-2009 YE-2009 MY Number of HD channels 14
15 HD content availability in Europe HD channels will triple between year-end 2009 and year-end % of available HD channels are broadcasted via satellite 1,400 1,200 1,000 Number of HD channels Source: Euroconsult: HDTV in Europe, Key Economics & Prospects to 2018, 2009; IDATE: IP video & TV networks, 2009 Europe: ALB, AT, BE, BUL, BIH, BY, DE, ES, FR, GB, GR, HR, IE, NL, HU, MOL, RO, SK, SL, CZ, DK, FIN, SE, CH, IT, PL, PT 15
16 HD viewers HD viewers growth prospects in ASTRA markets 16
17 HD homes on ASTRA There are estimated more than 8 million HD viewing homes on ASTRA (mid-year 2010) Total UK: BSkyB: Freesat: Total Germany: Sky Deutschland: HD+: Overall (incl. FTA): Total France: CanalSat: TNTSAT: Total other markets: Austria: Benelux: Czech Rep./Slovakia: Nordic Countries: Poland: Spain: 4 million million* >1 million HD STB s sold** 2.3 million 200,000 HD subscribers** 300,000 HD+ STB s sold** 2.3 million HD STB s sold** 0.9 million 340,000 HD subscribers** 600,000 HD STB s sold** 1.1 million 285,000 HD STB s sold** 40,000 HD subscribers** 145,000 HD STB s sold** 170,000 HD subscribers** 325,000 FTA HD viewers** 180,000 HD subscribers** Source: * Company figures **Industry estimates according to Screen Digest TV Intelligence Database, July 2010; Dataxis Quarterly Statistics, 2Q 2010; GfK Retail and Technology, July
18 HD ready homes vs. HD viewing in Europe More than 8 out of 10 European TV homes to have a HD ready TV set in 2014 Nearly 1 out of 2 of them will be watching HD programming 225, % 200,000 90% 175,000 80% TV homes in Europe Number of TV households (in 000 s) 150, , ,000 75,000 70% 60% 50% 40% 30% HD ready homes, but not fully enabled HD enabled homes % of HD enabled homes to HD ready homes 50,000 20% % of HD ready homes to total TV homes 25,000 10% % Source: Screen Digest TV Intelligence Database, July
19 Consumer readiness HD viewers per reception mode 76 million HD enabled homes in Europe by 2014 DTH* to be the largest distribution platform 35,000 34,293 30,000 28,281 Number of TV households (in 000 s) 25,000 20,000 15,000 10,000 7,500 12,256 16,996 22,618 DTH Cable DTT IPTV 5, ,914 1, Source: Screen Digest TV Intelligence Database, July 2010 *DTH = Direct-to-home 19
20 Consumer readiness HD viewer forecast by country HD viewing is becoming mass market in Europe 80,000 70,000 Eastern Europe Hd enabled TV homes (in 000s) 60,000 50,000 40,000 30,000 Rest of Western Europe France UK 20,000 10,000 Germ any Source: Screen Digest TV Intelligence Database, July
21 HD viewing in Europe vs. USA European HD development following in line with US uptake though faster HD growth expected in Europe for the years to come 90,000 80,000 USA 70,000 HD viewing TV homes (in 000 s) 60,000 50,000 40,000 30,000 2 years Europe 20,000 3 years 10, Source: Screen Digest TV Intelligence Database, July 2010 Europe: European countries excluding Russia & Turkey 21
22 3D TV 3D TV prospects in Europe 22
23 Major operators ready for 3D rollout United Kingdom Germany France France Spain Pan European Pan European Pan European Sky s dedicated 3D channel to be launched in October 2010 Sky 3D services launched to pubs for selected football matches (as of April 2010) Sky+HD set-top-boxes are 3D ready First 3D-HD live transmission of the German football league in March 2010 Sky s dedicated 3D channel to be launched in October 2010 Sky HD set-top-boxes are 3D ready Canal+ 3D channel transmissions started with the FIFA World Cup The event based 3D channel has been progressively enriched since then with sport, cinema & in house production in 3D Canal+ 3D is available to all Canal+ HD subscribers Transmitted five games from the World Cup in 3D including the final First free-to-air broadcaster to transmit 3D content in Europe First transmissions from Canal+ en 3D took place in April 2010 Canal+ en 3D is available on the iplus Digital+ hybrid receiver Aired this year s Roland Garros tennis tournament in 3D in partnership with Panasonic Planning to launch a regular 3D channel as soon as practicable Will begin by airing content on other channels (e.g. Sky 3D) prior to launching own service According to Fox Intl Channels president, may launch in a similar timetable to Discovery Three-way venture between Discovery Communications, Sony and IMAX announced plan to launch first 24/7 Dedicated 3D Television network in the U.S. by 2010/2011 Discovery Europe has recently received a licence from Ofcom for a potential 3D channel.
24 3D offering of major TV set manufacturers All major TV set manufacturers launch 3D TV sets in 2010 Panel type LCD Plasma Plasma LCD LCD LCD LCD Glasses technology Polarised Shutter Shutter Shutter Shutter Shutter Shutter 3D TVs (2010) D BD players (2010) n.a. Screen Sizes Maximum 3D resolution Integrated 2D 3D conversion 1080i/ 1080p 1080p 1080p 1080p 1080p 1080p Approx. pricing $2,000 (47 ) $2,500 (50 ) $1,800 (40 ) $2,000 (40 ) $2,900 (46 ) $2,000 (47 ) Source: Screen Digest, June
25 3D TV ready homes Almost 25 million TV homes equipped with a 3D ready set by million of them will be actively watching 3D programming 25,000 20,000 TV homes (in 000s) 15,000 10,000 3D ready TV homes 3D active TV homes 5, Source: Informa, Global 3D TV forecasts, April
26 3D TV viewing homes by reception mode DTH to be the largest distribution platform for 3D TV 2,500 2,365 2,000 Number of active 3D TV homes (in 000s) 1,500 1, ,087 DTH Cable DTT IPTV Source: Informa, Global 3D TV forecasts, April
27 Average price premiums for 3D TVs No major 3D price premium difference expected between Western and Eastern Europe Every 2nd TV screen shipped to be 3D ready in % 90% % Average 3D price premium (Western Europe) Average price premium (in Euro) % 33% 57% 48% 70% 60% 50% 40% 30% Average 3D price premium (Eastern Europe) % of TV sales that are 3D enabled (Western Europe) % 9% 17% 1% 7% 1% % 10% 0% % of TV sales that are 3D enabled (Eastern Europe) Source: Generator Research, April
28 For further questions, please contact: Harald Ulrich Senior Manager, Commercial Strategy & Planning Media SES ASTRA L-6815 Château de Betzdorf Tel.: (352) Fax: (352)
29 Appendix 29
30 148 HD channels on ASTRA August 2010 Including Sky News, 1st HD news channel in the UK 13ème Rue HD Anixe HD arte HD Germany arte HD France AXN HD Brava HD Canal+ HD Spain Canal+ Accion HD Spain Canal+ Comedia HD Spain Canal+ Dcine HD Spain Canal+ Deportes HD Spain Canal+ Liga HD Canal+ HD France Canal+ Sport HD France Cinecinema Premier Das Erste HD Discovery HD Germany Discovery HD Showcase Disney Cinemagic HD France Disney Cinemagic HD Germany Disney Cinemagic HD Spain Eurosport HD France Eurosport HD Germany Eurosport HD Spain Fox HD France 2 HD History Channel HD Germany Kabel 1 HD M6 HD Mezzo Live HD MTVN HD National Geographic HD France National Geographic HD Germany National Geographic HD Spain Orange Sport HD Orange ciné max HD ORF 1 HD ORF 2 HD Penthouse HD Pro7 HD RTL HD Sat.1 HD Syfy Universal HD France Servus HD Sky Action HD Sky Cinema HD Sky Cinema Hits HD Sky Sport HD 1 Sky Sport HD 2 TF 1 HD TVP HD Ushuaia TV HD Vox HD ZDF HD BBC HD Biography Channel HD Channel 4 HD Comedy Central HD Crime & Investigation Network HD Discovery HD Europe Disney Cinemagic HD UK E4 HD ESPN HD ESPN America HD Eurosport HD FIVE HD FX HD Hallmark Channel UK HD History Channel HD UK ITV 1 HD MGM HD MTVN HD National Geographic HD UK Nat Geo Wild HD Sky 1 HD Sky Anytime HD 1 Sky Anytime HD 2 Sky Arts HD 1 Sky Arts HD 2 Sky Box Office HD 1 Sky Box Office HD 2 Sky Movies HD Action & Adventure Sky Movies HD Comedy Sky Movies HD Crime & Thriller Sky Movies HD Drama & Romance Sky Movies HD Family Sky Movies HD Indie Sky Movies HD Modern Greats Sky Movies HD Premiere Sky Movies HD Sci-Fi & Horror Sky Movies HD Showcase Sky News HD Sky Sports HD 1 Sky Sports HD 2 Sky Sports HD 3 Sky Sports HD 4 STV HD Syfy HD UK Brava HD Canvas HD CT HD Dance TV HD DELUXE Lounge HD Discovery HD Europe Disney Cinemagic HD Germany Disney XD Netherlands HD Een HD Eurosport HD Film1 HD FilmBox HD HBO HD Czechia History Channel HD Germany History Channel HD Ketnet HD National Geographic HD Germany National Geographic HD Nederland Nederland 1 HD Nederland 2 HD Nederland 3 HD Net 5 HD Nova HD Nova HD Nova Sport HD RTL4 HD RTL5 HD RTL7 HD SBS6 HD Sport1 HD Unitel Classica HD Veronica HD VTM HD DR HD MTVN HD National Geographic HD NRK HD Premier League HD SVT HD TV1000 HD TV2 HD TV2 Premier League 1 HD TV2 Premier League 2 HD TV2 Premier League 3 HD TV2 Sports HD Denmark TV3+ HD Viasat Premier League HD Viasat Sport HD Sweden Viasat Sport HD Norge Luxe TV HD 19.2 E 28.2 E 23.5 E 5.0 E 31.5 E 30
31 Purpose and sources This document provides ASTRA customers and market partners with an exclusive insight into the current situation and future development of HDTV, both in Europe and in specific markets This research has been derived from: GfK retail panel data for sales figures, July 2010 ( ScreenDigest TV Intelligence Database, July 2010 ( Dataxis quarterly statistics, 2Q 2010 ( Euroconsult report on HDTV for the forecasts ( HDTV in Europe, Key Economics & Prospects to 2018, produced in partnership with NPA Conseil in 2009) ( IDATE: IP video & TV networks Which Network to Deliver HDTV in Europe?, May 2009 ( Informa Telecoms & Media: Global HDTV: 5th edition. Forecasts to 2014, March 2010 ( Generator Research: 3D Television: 2010 to Detailed Market Analysis, Data and Forecasts, April 2010 ( 31
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