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Presented by Informa and Ovum. Opportunities and threats for Telcos taking them beyond 2020. For more information on the event please visit: http://bit.ly/1AKUIweTRANSCRIPT
1!Friday, October 31, 2014
Fetch TV Overview!
Ovum 2020!
October ‘14!
A Dual Charter!
Usaha Tegas Group!
BGSM! Astro International!
Aircel!Maxis! Media Innovations!SUN Direct!
MEASAT! Johnston Press! Pexco!Bumi Armada!
Hotel des Bergues!Overseas Union Enterprise!Kuala Lumpur City Centre! Menara Maxis & Perak!
Satellite Owner & Operator! Print & Digital Media! Oil & Gas Support Services! Oil & Gas – Exploration & Production!
Properties! Properties! Properties!Properties!
NTS!
Sri Lanka Telecom! Astro Malaysia!
Integral!Four Cross Media!
About Fetch TV!
• Founded 2008 • Strategic shareholder in Usaha Tegas / Astro • 70 Staff / Offices in Sydney / Kuala Lumpur • End to End IPTV PlaKorm/Content Aggregator
A Dual Charter!
• Product House servicing Australia / NZ (Fetch TV) and Asia (Astro)
• Common development plaKorms, code base and product roadmap
• Able to amorRse R&D investment based on regional scale
Pay TV Platform Product House
Code Base In-‐house Development Core Product Architecture
Owned Architecture Low Cost OperaRons Deep STB Experience
Content AggregaRon
Linux OS (Busybox)
Device Drivers
Daemon Services
Manufacturer Independent SDK
Webkit Web browser
HTML5 & Javascript User Interface
Broadcom Nexus
SoC Libraries
CFE (Common Firmware Environment)
Australians rank near top of ladder on Entertainment Services Australia – Top 5 on Entertainment Consumption !
and are amongst earliest adopters of new technology Australia – Top 5 on Technology Adoption!
CAGR of ~ 0%!
-%
10%
20%
30%
40%
50%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Pen
etra
tion
Years Since Launch
UK AU NZ
95%
55% 52% 48% 40%
27% 19%
0%
20%
40%
60%
80%
100%
North America
Western Europe
New Zealand Asia South America
Australia Africa
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13(f)
Austar Foxtel
Australia – A low marker on Pay TV penetration!
8.8m Households
4.5m!
1.6m
!
Premium Pay TV (Foxtel)
$110 pm (avg.)! Sports Led proposition ! Not Contestable! Not Growing!
FTA / Pay Lite
Primary FTA Households! Time shifting via PVR / Catch Up! Rent / Buy Movies (physical)! Latent demand for “Pay Lite” !
Foreign Language
Greek, Italian, Arabic, Hindi / Punjabi, Korean, Mandarin Cantonese, Filipino, Vietnamese !
Growing quickly! Latent demand for content in FL!
Segment DescripEon
5.0m!
1.5m!
Fetch TV - Defining the Market!
2.3m!
Market Opportunity 6.5m
Competitive ecosystem was expected to develop PLATFORMS Big Pay TV (cable / sat) !
Pay Lite!
TVOD / DTO!
AVOD!
OTT
Subscription Linear!
SVOD!
10
The “Widget” Play! STB Devices!
Chromecast!
Smart TV’s!
Gaming Consoles!
Welcome to Widget World!
12
Lots of stores….not many shoppers!
Fetch TV - a Platform Play!
All about the User Interface!
Time!Shifting!
Video Store !in the Home !
Best of the Net!/ Media Centre!
Phone / Tablet!Companions!
Free to Air!TV!
Entertainment Pack - $15 mtm!
SVOD / Apps! ALC Channels / Tiers!
Foreign Language Opportunity!
Gree Greek!
Ital Italian!
Arabic - Sydney Arabic!
A Dual Charter!
2) NEW IQ3 STB!
1) New Packaging/Pricing!
3) Triple Play!
4) Presto Pricing!
The Business Model is built on ISP Partnerships
Content
Hardware
User Experience
SI
fetchtv!
Telco!
Brand!
Operations!
Sales & Service!
Network!
Customer!Base!
USP
Premium service, from trusted partner, on single bill at an attractive price!
Customer!
ISP PARTNERSHIP MODEL
“Hero” for!Triple Play!
Winning in an!NBN world!
Product!Profitability!
• Gateway Proposition!• Brand “Halo” Benefits!• Churn reduction!
• Sell the Sizzle!• Differentiate!• Avoid commoditisation!
Re-contract!/ Reduce Churn!
• High % of base off contract!• New threat from Foxtel!• FL version of “iPhone” event!
TELCO - WHY IPTV? BB!
Market!Acq.!
Costs!Churn!Margins!
• Low incremental costs!• Break even on Starter !• Rev Share on VAS!
A Dual Charter!Broadband Market!
47%
16%
15%
8%
12%
4%
Broadband Market Share
Telstra* ! Optus ! iiNet ! M2! TPG ! Other !
TELCO BUNDLES!
Marketing Overview!
Service Delivery (ISP)!
Trusted Partner!
Single Bill!
Bundled!
One Stop Service!
Unmetered!
Quality of Service (QOS)!
BTB (ISP) BTC (Retail)