DIGITAL TERRESTRIAL TELEVISION SERVICES IN HUNGARY: DIGITAL SWITCHOVER CAMPAIGNS

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DIGITAL TERRESTRIAL TELEVISION SERVICES IN HUNGARY: DIGITAL SWITCHOVER CAMPAIGNS András Tóth Head of Communication Antenna Hungária April 18, 2013

Evolution of the digital terrestrial television platform Regulatory Content Network rollout Communication 2008 Tendering for 5 DTT MUX s, AH won the tender December: soft launch, service brand: MinDig TV 2 FTA HD 2 SD (pay-tv) channels 2 DVB-T, 1 DVB-H MUX 3 sites in operation ~ 58% pop. coverage (rooftop) 2009 Full launch: contracting with the major commercial and public media players Finalization of the line-up: 7 FTA channels (3 in HD) 2 SD pay-tv channels 2 DVB-T, 1 DVB-H MUX 14 sites in operation ~ 88% pop. coverage Intensive introductory campaign, mostly ATL Service awareness: ~40% 2010 Pay-TV extension branded as MinDig TV Extra ASO postponed to 2012 Launch of 10 thematic channels, altogether 17 FTA & pay-tv channels available. 2 DVB-T, 1 DVB-H MUX 29 sites in operation ~ 95% pop. coverage Intensive ATL campaigns Launch of Infochannel Service awareness: ~65% 2011 DVB-H service terminated, launch of the 3rd MUX ASO postponed to 2014 Launch of further 14 thematic channels, altogether 31 FTA & pay-tv channels available. 3 DVB-T MUX s 50 sites in operation ~ 97.8% pop.coverage Intensive ATL campaigns Educational thematic troubleshooting videos Service awareness: ~85% 2012 Pilot ASO programs executed in Barcs & Sopron ASO in Barcs 3D test transmission of M3D channel 3 DVB-T MUX s 65 sites in operation ~ 98.5% pop.coverage Intensive ATL campaigns Thematic TV mini-series Service awareness: ~92% 2013 ASO in two phases: July and October, 2013 Frequency-changes Mulitplex B can be enhanched by additional transmitters 3 DVB-T MUX s ~ 90 sites ~ 98.8% pop.coverage NMHH ASO communication campaign launched Special ASO service campaigns by AH 2014 Further two DVB-T MUX s may be launched, further FTA and pay-tv channels Non-linear services (hybrid, OTT) 4-5 DVB-T MUX s ~ 90 sites ~ 98.8% pop.coverage Intensive ATL service campaigns

Audience Offer Digital switchover from Antenna Hungária s point of view: pivotal role in the innovation and in the utilization of digital technologies Results up to now: Enhanced FTA and pay-tv offer with HD channels Network coverage exceeds the analogue one, enhancement of internal reception Test transmission of 3D content 3D and HD online transmission of Football EC and Olympics on our CDN network Two pillars of the terrestrial TV platform of Antenna Hungária Analogue Free-to-air TV N Digital Pay-TV Nationwide coverage (86-97%) 3 nationwide channels Nationwide coverage (98%) 7 commercial and public channels, including some FTA HD Nationwide coverage (Basic: 98%, Family: 90%) Offer containing more than 30 popular channels Highest growth achieved among the wireless service providers Small settlements at the countryside Elder than 60 years Basic education D-E status More younger, more valuable audience from advertising view: Budapest and surroundings Mostly 18-34 or 60+ years C1-C2 status Living in Budapest / surroundings / cities Mostly 18-49 years High ratio of users with diploma degree Mostly C1-C2 status 3 Further goals Further FTA and pay-tv channels after the analogue switch-off, HD, 3D-plans Hybrid and over-the-top solutions: increasing the content selection, ensuring greater comfort ConnectMedia: enlarging the dgital media services

Affected households in the ASO process and the necessary measures Source: Nielsen, Ipsos NMHH, AH In case of old TV-set: - DVB-T MPEG-4 set-top-box - A new aerial, if the existing one is not suitable for the proper and stable reception of the digital signals In case of DVB-T MPEG-4 integrated TV set: - No need for a separate set-top-box - A new aerial, if the existing one is not suitable for the proper and stable reception of the digital signals The primary target group of ASO is around half a million Hungarian households, moreover, there are hundreds of thousands of institutional and secondary users, as well as the households near the border. 4

Constantly increasing number of user households and subscribers FTA Pay-TV Source: Ipsos Source: AH - There were around 350 thousand MinDig TV users at the end of 2012, the number of pay-tv subscribers is close to 100 thousand now. - Equipment penetration: there are more than 1.5 million MinDig TV compatible device (STB, IDTV, USB stick) at the Hungarian households. 5

92 % 76 % Expanding awareness of our digital TV service brands: significant marketing communication efforts MinDig TV total awareness Source: Ipsos MinDig TV Extra total awareness Source: Ipsos As a result of successful communication campaigns the service awareness is constantly growing, MinDig TV and MinDig TV Extra brands have become nationally known and popular brands. 6

Case study 1: Thematic TV mini-series: The Big Switchover Show Timing: from November 2012 Form: 90 sec mini-series Quantity: 18 chapters Media: nationwide public M1, online, websites & social media Starring: a famous and credible celebrity, Gábor Gundel Takács Including humorous side stories Financing: AH budget The main purpose was to give thematic information about the followings: benefits, availability, usability, content, necessary equipments, how to install, HD-quality, sticker system, official shops Mini-show format, simultaneously informs and entertains. 7

Case study 1: Thematic TV mini-series: The Big Switchover Show 8

Case study 2: Switch! Antenna Hungária digital switchover ATL campaign 9 Timing: from the end of April 13 three waves from April to October Form: 30 sec, 8 series Media: Nationwide, regional and local ATL campaigns: 3 analogue channels (M1, RTL Klub, TV2), radio, outdoor, print, online, websites, social media, events, microsite, cooperation partners Retro concept: utilizing a very popular quiz show from the 80 s, with its famous presenter, György Rózsa, in a humorous way Target groups: 50+ (primary) 18-49 (secondary, the helpers ) Financing: AH budget

Lessons learned 1. 10 NETWORK COVERAGE ISSUES: If you want to broaden the target audience through the digitalization, the replication of the analogue terrestrial network reception conditions are not enough. You should enhance the network coverage so as to provide indoor or outdoor portable reception conditions especially in the bigger cities. NECESSARY EQUIPMENTS: As for the set-top-box and IDTV s market, a sticker system would help for the users and help you in the communication. The sticker guarantees for a customer, that the given equipment was tested by AH and suitable for DVB-T usage. DIGITAL TERRESTRIAL SERVICE OFFER: If the DVB-T capacity is limited, but you want to compete with the cable and DTH operators concentrate to incorporate the most wanted channels into your line-up for a very favorable monthly fee. Focus on smart choice concept with value for money offers (both in FTA and in pay-tv).

Lessons learned 2. ASO COMMUNICATION: Fine-tune the key ATL messages for your target group, concentrate only to key USP s: free-to-air availability, more channels, better quality, nationwide coverage Importance of local campaigns and BTL tools so as to reach the target audience Consider to combine the dry technical facts with humor and entertainment Technical aspects: visualization is key (troubleshooting and how to.. videos, longer 1.5-2 minutes - thematic TV mini-programs) If elder people are over-represented in the target group, try to involve the helpers also: children, grandchildren, relatives Cooperation with all the stakeholders, forming alliances & partnerships is crucial Constantly monitor the migrations of the target group, the latest trends and equipment sales volumes by market surveys, at least on a quarterly basis 11