1. Video services: IPTV Vs OTT
Is IPTV a long-term model ?
Gilles Fontaine
g.fontaine@idate.fr

2. 1. IPTV in Europe
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3. Status of IPTV (end 2010)
•14 M or 7% of European Union TV
Households technically receive IPTV (12%
of pay-TV households)
•France accounts for 45% of total IPTV
households
•Leading countries for IPTV penetration
among pay-TV households:
●
●
●
●
●
Source: MMTV database january 2011
IPTV penetration
rate classes
< 5%
< 10%
< 20%
< 30%
France
Slovenia
Denmark
Spain
Italy
•Drivers of Bundled IPTV:
● Growth of the broadband market
● Advanced TV services
● Low cost/free multichannel television
> 30%
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IPTV penetration rate: (IPTV HH/total pay TV HH)*100
Source: MMTV database january 2011

4. IPTV offerings in Europe
Coutries and ISP
France
SFR
(IPTV)
IPTV services bundled in Triple play:
●Prices from 27.95 to 51.95 €/month
●Number of channels: from 40 to 185
channels. In the most cases the number of
free DTT channels is included in the offers.
●Services included: catch-up TV (in option in
some offerings)
●Services on demand: VOD, PPV…
Orange
(IPTV)
Bouygues Telecom
(IPTV)
Numericable
(cable)
Triple play offerings
Number of channels
Monthly price
Neufbox
160 (incl. DTT
channels)
31.90 EUR
Net plus
Bbox
NC Box HD
130 (incl. DTT
channels)
120 (incl. DTT
channels)
120 (incl. DTT
channels)
37 EUR
31.90 EUR
32.90 EUR
Germany
● Pay-TV
● multi-room option, DVR capacities…
Entertain Pur
70 (incl. DTT
channels)
27.95 EUR
Unity Media
(cable/satellite)
Espagne
Telefonica
(IPTV)
3play 32.000
75 (incl. DTT
channels)
30 EUR
Movistar imagenio
30 (+ DTT
channels)
46.08 EUR
ONO
(cable)
Triple play Esencial
40 (incl. DTT
channels)
51.95 EUR
Orange
(IPTV)
●Options:
Deutsche Telekom
(IPTV)
Triple play initial
30 (incl. DTT
channels)
29.44 EUR
Jazztel
(IPTV)
Internet + Voz + Tv
con Línea JAZZTEL
30
50.05 EUR
Fastweb
(IPTV)
United Kingdom
Parla, Naviga
Casa&Fastweb TV
35 DDT channels
(according areas)
49.95 EUR
BSkyB
(satellite)
Broadband, Sky TV
and calls
BT Vision
(IPTV)
TV, Broadband and
Calls
Italy
One Entertainment
pack (from 11 to 24
channels)
50 (only DTT
channels)
20 GBP
20 GBP
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5. 2. A long term model ?
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6. Recent significant moves
Unbundling IPTV: Free changed its pricing strategy from 29.99 € for triple
play to 29.99 € for telephone+telephony + 1.99 € for basic television.
Unbundling IPTV: TV (+ telephone) only service by Deutsche Telekom
(Entertain Pur).
Enhancing IPTV bundling value: Orange offers 50 free VOD films per
month.
Moving to a two-sided strategy: Vodafone, SFR to offer delivery services
for OTT content
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7. A new environment
1. More free content through DTT and satellite
End even more after the switch-off…
2. Digitisation of cable
More competition from cable for advanced TV services
3. Connected TV
Competiton of « Open Internet » content
Will the value proposition of bundled basic TV services decrease ?
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8. More free content available on DTT
•
Free DTT offerings
multiply in Europe,
already 14 countries have
completed analogue
switch off and 7 begin
analogue switch off
process.
•
For the 10 European
countries most advanced
in the DTT broadcasting,
the average number of
available channels
exceeds 23.
tdt (20)
•
The most basic triple play
offerings include DTT
channels, in some cases
the number of DTT
channels represent 50%
of available channels in
the package.
DVB-T
(36)
Source: http://www.digitag.org/
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Belgium households can receive French or Luxerbourg DTT channels according their location

9. The connected TV as a new distribution model
Right
holders
TV
channel
Content
packager
Network
Terminal
EPG/OS
Consumer
Aggregators
Competition for VOD
Competition for theme
channels
Competition for triple-play
TV Channels by-passed
Network congestion
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10. The telcos dilemma: bundled IPTV is one of many strategies
« How to go out of the
Flate rate/unlimited
« How to manage the
Wholesale face of my
Platform? »
pricing? »
Content
&
Service
Telco
End-user
Workshop 3
focus
Workshop 1 & 2
Service &
Content
Pay per use
(End of unlimited flat rate)
Performance-based
Pay per quality
(« Equivalent » to CDN or MPLS
products, but in managed services)
QoS
Termination for IP data
(« Equivalent » to paid peering)
Volume
(e.g. different througputs, like SDSL)
Traffic wholesale
Bundles traffic/service
(Eg Amazon Kindle)
(Equivalent to current IPTV services)
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