hdtv via satellite
TRANSCRIPT
Alexander OudendijkChief Commercial Officer, SES ASTRA
HDTV via SatelliteThe Prime Infrastructure for the New Television
2nd IPTV Conference,London, 27th March 2006
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ASTRA EMEA Facts and FiguresSatellite Fleet
12 ASTRA and 2 SIRIUS satellites for Europe, plus 1 specific for Africa andIntercontinental traffic4 new satellites under procurement
Key Features19.2° and 28.2° East are Europe’s prime orbital positions for Direct-to-Home (DTH)23.5° East Direct-to-Cable slot – with development into DTH positioncomplemented by 5°East - with strong coverage of Nordic & CEE countries
Customers Over 330 customers and more than 1600 channels & services
Technical ReachASTRA: 107 million households (45 million DTH/SMATV)
Financials (EMEA, 2005)Revenues: 765 MEUREBITDA: 604 MEUR Backlog: 4,045 MEUR
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ASTRA’s Prime Channel Line-up
Europe’s leading private and public television channels:
Europe’s leading resellers are partners of ASTRA:
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Agenda
HDTV the real context of the upcoming battle:
The HDTV attributesThe eco-system behind its development The satellite advantagesThe role played by ASTRA The expected development
The telco ‘IPTV play’
Their real motivation to get into TV distributionTheir development plans & the associated limitation The potential of Hybrid Satellite-DSL solutions
Cable players lack market power in Europe
Conclusion
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HDTV attributes4-5 times the pixel resolution of standard definition brings brilliant picture quality, particularly noticeable on displays of 42”and aboveConsumers need new HD-compatible set top boxes and HD-ready displaysor projectorsEven with state-of-the-art compression technology, HDTV requires about 3 times the bandwidth of conventional digital transmissionsHDTV fuels the demand for satellite transponders: 2-3 channels per transponder today vs. 8-12 for standard definition. Mid-term about 5 HD channels per transponder will be possible
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The development of HDTV in Europe is driven by market forces and not by the regulator
HDTV in Europe – Driven by market forces
Enthusiastic and competent organizations are driving the introduction of HDTV on a national and European level
StandardizationMarketingDealer & installer education
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The ASTRA role in promoting HDTV
ASTRA is one of the main drivers of the European HDTV introduction
Created one of the first HDTV web sites: www.hdtvforum.org
Convinced manufacturer organisation EICTA to agree on HD logo’s
ASTRA Germany signed co-marketing agreement with
Numerous HDTV related speeches to industry and journalists
Initiated the European HDTV Forum in June 2004
Issued satellite HDTV receiver guidelines to manufacturers
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Infrastructure – Why is Satellite ideal for HDTV?
Compared to other broadcast infrastructures, satellite is ready today for HDTV:No bandwidth restrictionsNo network upgradesNo change to satellites
Only satellite is capable now to deliver a plethora of attractive HDTV channelsMany cable networks need substantial infrastructure upgrades to deliver HDTVDTT has big spectrum constraints which severely limit HDTVADSL networks need substantial upgrades to VDSL to carry IPTV signals in HD format
Satellite is the driving force for the HDTV roll-out in Europe!
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Content – HDTV via the ASTRA Satellite System
Canal+ announced launch for April 2006
Premiere launched 3 HDTV channels on December 3rd, 2005 (e.g. all 64 soccer worldcup matches in HD on ASTRA)
BSkyB will launch an HDTV bouquet in 2006
By YE 2006, ASTRA will already carry approx. 20 HD channels on three orbital positions
Europe’s first HDTV channel HD1 (previously Euro1080)launched on ASTRA in January 2004
Pro7 and Sat1 launched their free-to-air HDTV channelsin October 2005
BBC announced to start HDTV broadcasts in 2006
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Consumer Equipment – Sales of HD Ready screens in Europe Feb. - Dec. 2005 cumulated
2.0 mill. HD Ready TV sets sold in Europe in less than 1 year !
Source: GfK Retail and Technology Jan. 2006 (excl. 4th quarter sales for Belgium, Czech R., Denmark, Finland, Greece, Hungary, Netherlands, Poland, Portugal, Slovakia, Sweden, Switzerland)
Europe: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Netherlands, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, UK
Type of Screens: LCD, Plasma, Rear projection
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Feb05-Mar05
Apr05-May05
Jun05-Jul05 Aug05-Sep05
Oct05-Nov05 Dec05
HD
Rea
dy T
V se
ts s
old
in u
nits
(cum
.) in
Eur
ope
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Germany, UK and France to be the largest HDTV markets
Euroconsult Forecast on Households with HDTV-Sets
Reproduction prohibited, © 2005 Euroconsulthttp://www.euroconsult-ec.com
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Forecasts of Households equipped with HD-enabled TV sets in Europe(2003-2015)
Households in million
Germany
UK & Ireland
France
Italy
SpainNordic countries
Rest of Western Europe*
* Includes Austria, Belgium, Greece, Luxemburg, Netherlands, Portugal and Switzerland
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Satellite to be the leading mode of HDTV reception:approx. 40% of European households in 2015!
Euroconsult Forecast on HDTV Delivery Networks
Reproduction prohibited, © 2005 Euroconsulthttp://www.euroconsult-ec.com
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Forecasts of Households equiped with HD Receivers in EuropeBreakdown by Delivery Network
(2005-2015)Households in million
Satellite
Cable
DSL
DTT
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For the telcos, IPTV is a subset of the broadband access market
Telecom operators are proposing triple-play-based TV as a way to minimize revenue risk against cable or competitive DSL triple-play
The risk of not going IPTV for the PTO isTo lose 100% of some customer’s ARPU to cable… or to retain only 20% of the ARPU for those customers who arebuying their broadband access from competitive DSL providers
Benefit of doing IPTV for the PTO is less to capture an additionalARPU of 20-25 EUR/month from video services than to keep thesubscription to their broadband access
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Telco Strategy Creates Market for Hybrid TV Solutions
TOTAL Western European (*) TV HH : 160 M
PC HH : 160 M
BROADBAND HH : 160 M
DSL HH : 105.5 M
BB CableHH : 45.5 M
Competitive Retail DSL : 52.5 M
PTO retail DSL :52.5 M
HD READY: 26 M
Addressable Retail TV Market For Telco SD & HD
Market potential for Hybrid DSLorother with DTH solutions
Retail TV (via cable)
The technological choice of the telco’s & the fragmented broadband access market will createa market potential of about 60 million TV households for satellite based hybrid platforms such as BWA/DTH or DTH/DSL.
(*) Austria, Belgium, Denmark,France,Germany,Greece,Norway,Netherlands, Italy, Portugal,Spain Sweden,Switzerland,UK
Others’HH: 9M
HD READY: 26 M
Assuming that by 2015, all Western European households will be connected via broadband,the fragmented broadband market structure will provide HD capable access (2HDTV+ 20 mbps downstream) to only approx. 50 million households.
The IPTV market addressability is limited by multiple technical and commercial factors
Market potential for Hybrid DSLorother with DTH solutions
HYBRID HYBRID
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Source : Strategy Analytics , 2005
The European cable industry is too patchy to be leader in HDTV development or even in IPTVroll-out. Cable will further consolidate and be, at best a fast follower of satellite on the HDTV in markets where it matters.
Shares of Infrastructures in Europe
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Cable Lacks Market Power in Europe
With the exception of Benelux and Switzerland, cable coverage ispatchy. Hence the cable sector is limited in its ability to compete fortop content deals.
In countries where cable has substantial coverage and/or marketpresence (Benelux, Switzerland, Germany) it has not been aninnovation leader.
A significant number of cable companies are now in the hands ofprivate equity groups that are unlikely to support the investmentsrequired to transition customer bases from SD or even Analogueto HDTV
Current focus of most cable company shareholders is on triple playand RGU (revenue generating unit) development with telco-basedservices (VoIP and high-speed data connection)
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ConclusionHDTV is the ‘name of the game’ for the foreseeable future, and willbe carried already in 2006 in multi-channel line-ups over satellite
The IPTV market development for the foreseeable future will belimited due to the inability of the infrastructures to cope simultaneouslywith multiple HDTV channels and broadband internet access provision
Meanwhile, the broadband market will grow in Europe and will offermultiple opportunities for satellite to combine its strengths withbroadband access providers through the provision of hybrid triple play solutions
Cable will continue to consolidate in order to stay relevant as secondary terrestrial infrastructure. However, cable is not expected to be aninnovation leader in HDTV.