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European Commission

15th July 2003

Cable and Broadband contents

Olivier DE BAILLENX

Public Affairs Manager NC NumeriCABLE

DIGITAL TV AND RADIO. BROADBAND INTERNET

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I - Introduction: NUMERICABLE

II - TV and Internet offers

III - IP TV : presentation and first results

IV - Next step : broadband portal, content and services

V - Perspectives and challenges

AGENDA MEETING

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NC NUMERICABLE KEY FIGURES

• 100% subsidiary of Canal + Group

• Potential : 2.6 million households

• Fully digitalised network

• ISO 9002 certified

• National fiber backbone

Total Revenue 2002 : 148,2 M€

Home Passed 2,3 M

TV Subscriptions 765 000

Internet Subscriptions 49 900

Staff 600

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• Large sections of Paris suburban area

• Some of France’s most dynamic

cities: Lyon, Toulouse, Nantes, Nice,

…

Key systems

• Digital CATV available in all sites

(120 channels)

• Internet broadband in major cities

(128 k, 512 k, 1024 k eurodocsis)

• Smaller sites being considered for internet upgrade

Services offered

1 000 subs

5 000 subs

10 000 subs

CATV+InternetCATV only

Roubaix, Lille’s suburbsBoulogne/mer

Reims

BrestVersailles

NiortLyons + suburbs

Belfort

Toulouse Nîmes

Grenoble

MunsterHauts de Seine(Adetel)

Nancy

BastiaFréjus

Cagnes Nice

Saint Etienne

Béthune

Angoulème

Lens/Hénin

Nantes

Sète

Caen

Perpignan

VDM

DOUBLE PLAY IN FRANCELARGEST CITIES AND PARIS AREA

NC NUMERICABLE

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•Available in all sites•>130 channels•Interactivity/options/personalisation when digital

• Basic : 3 offerings (2 digital, 1 analogue)

• “à la carte” offering

• Antenna service for apartment buildings

OFFERING TV AND INTERNET

@@•Available in all major sites

•Proprietary ISP

• 3 unlimited access offers :· 128 kbp/s : 25€ / month

· 512 kbp/s : 40€ / month

· 1024 kbp/s : 50€ / month

• Special offer for municipalities/schools

•Attractive pricing for bundles

• Creation of a bundled product : Pack TV+Net

• discount for simultaneous subscription to TV and Internet

+@@

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/ A SUBSCRIBER AREADirect access to subscribers services : mail, personnal pages, on line help, subscribers goodies…

/ 12 THEMATIC AREAS WITH BROADBAND CONTENTS sports, news, games, movies, travel, music …

/ SERVICES shopping, SMS, broadand directory, TV programs, city maps…

/ LOCAL CONTENTlocal news and services

/ MORE THAN 30 PARTNERSHIPSAllociné, I-Télévision, Pages Jaunes, AFP, MCM, L ’Equipe.fr, Bourse Direct, Lycos ...

PORTAL AND INTERNET SERVICESOFFERING

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• time spent online : twice longer (vs narrowband using)

• mails : 64% brodband subscribers use mail services everyday (vs 43% narrowband users)

Ipsos Mediangles - Nov 2002

OFFERING Broadband advantages (vs Narrowband)

• Some differences between broadband and narrowband internet users :

• Online radio listening (32% vs 14%)

• music loading (35% vs 17%)• video loading (22% vs 8%)• video on line (20% vs 7%)• chat, online VG, instant

messages...

… Speed and (picture, sound) quality Always on ...

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• Goals– Technical and marketing test– Assessing a business model for a possible

commercial launch

• Description – target : Numericable internet subscribers,

located in Ile de France (Paris suburbs - 15.000 subscribers)

– start :14th of May– on line questions to test quality perception

and business potential

• TV Channels– I-Télévision (news), L’Equipe TV (sport

news), Canal J (kids channel), Match TV (entertainment), MTV Live

EXPERIMENTATIONIP TV

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• 4500 @ subscribers are currently testing the service

• audience : In average, 22 minutes/visit

• I- television (news channel) : best audience - short programs suited to this kind of TV audience

• Test goes on during all summer

• Next step : Go/No go decision for a commercial offer

FIRST RESULTSIP TV

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• Existing contents – video-clips and radios– Movies sneak previews– News (I-TV, local news on M6)– broadband directory, video guides– software loading

• New Contents :– pay music loading– pay games loading

• IP Television– commercial offer

• Launch : to be decided...

NC BROADBAND PORTAL

Aim : defining a specific portal for all broadband contents

NEXT STEP

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• Business model to define - two ways :

• partnership with companies (TV channels, movies or music providers/studio) - sharing revenues

• Numéricable specific services : like TVOD, with new kind of STBs

These subjects are under reviews

• National and local contents : mainly news - less video, movies and music

AND AFTER … PERSPECTIVES & CHALLENGES

• Technical : broadband capacity and associated costs

• Contents : few until now -• business model to be defined • access to programs (movies, music)

• Consumer confidence for pay services on @

• Legal : • necessity to define a liberal legal framework for

new services• no specific constraint on cable• VAT : encouraging new services with low TVA

rates

ChallengesPerspectives