tu media corp

TU Media Corp.

Current Status and Forecast of Satellite DMB

- UK-Korea 2nd Future Mobile Evolution Forum-

Current Status and Forecast of Satellite DMB

- UK-Korea 2nd Future Mobile Evolution Forum-

2005. 9. 7

TU Media Corp.TU Media Corp.

New Emerging Market : DMB

Network & Terminals for DMB Service

Channel Line-Up of TU Media

Brief Introduction of TU Media

Contents Contents

11

22

33

44

I. TU Media’s Satellite DMB Business

II. TU Media’s Business Plan

III. TU Media’s Experience and Finding

IV. Synergy of Fixed and Mobile Broadcasting

1. New Emerging Market : DMB

DMB(Digital Multimedia Broadcasting)

Users have limitations

of

Space, Place, and Time

to watch TV

Users have limitations

of

Space, Place, and Time

to watch TV

• Personal Media

• Any Place

• Anytime, Any Situation

• Personal Media

• Any Place

• Anytime, Any Situation

Fixed Broadcasting- Terrestrial- Cable- Satellite

Fixed Broadcasting- Terrestrial- Cable- Satellite

Conventional

Broadcasting

Service

Market

New

Emerging

Broadcasting

Service

Market

Mobile Broadcasting- Satellite DMB- Terrestrial DMB

Mobile Broadcasting- Satellite DMB- Terrestrial DMB

DMB is the new form of ‘personal & interactive’ media displayed via diverse platforms of digital devices,

to meet increasing mobile broadcasting demand.

“ The Future of Broadcasting is in your hand ” (MIPTV/Milia 2005)

DMB is the new form of ‘personal & interactive’ media displayed via diverse platforms of digital devices,

to meet increasing mobile broadcasting demand.

“ The Future of Broadcasting is in your hand ” (MIPTV/Milia 2005)

2. Network & Terminals for DMB – Network Structure

Satellite signal will be delivered via multiple paths. Directly through Satellite

as well as through Gap fillers.

( East longitude 144 )

ProgramProviderProgramProvider Vehicle Receiver Mobile Receiver

TerminalTerminal

Ku-

Ban

d

13.8

24~1

3.88

3GH

zS

-band

2.630 ~2.655GH

z

Ku-Band

12.214~12.239GHz

S-ban

d

Satellite DMB Broadcasting Center

Satellite DMB Broadcasting Center

SatelliteSatellite

Gap Filler Gap FillerVideo

Audio

Data

SPECSPEC

DirectionDirection

ManufacturerManufacturer

Mobile phone-combined Portable Stand Alone VMT (Car Built-in)

• 2.2” or 2.4” LCD (Support QVGA)• Support Wireless Internet

• 2.5~3.5” LCD • No return path

• Utilizing 5~7” Car TV• Reception module type

• Market launch with Hi-Tier

Products and will expand to

low-tier afterwards.

• Introduce MP3 combined

products first and will then

expand to more convergent

products.

• Introduce reception module type

to utilize pre-installed LCD and will

expand to LCD combined product

for B/M.

• Samsung, LG, Motorola,

SKTT, Pantech&Curitel

• Cyberbank (PDA combined)

Access Telecom

• Innoace, HDT,Kiryung

Electronics, Joongang

system,Hyundai Autonet

Mobile phone-combined Portable Stand Alone Car Built-in

TU will maximize customer’s convenience and stimulate terminal industry by introducing diverse types of terminals to customers and full support & open policy to manufactures.

2. Network & Terminals for DMB – Terminals

4. 단말기

3. Channel Line-up of TU Media

Type

Video (Max 14 channels)

Program PlanLineup/Contents

Per Genre(8)

PP Lease(Modification to

Mobile environments)News,Drama,Music,Sports,Education,Game,Movie etc

Audio(Max 25

channels)

Basic Music(16)

DJ Music(7)

Variety(4)

PP Lease

Latest Hit, Oldies,Theme 24 hours Music

Star DJ, Amateur DJ, Mania, Live Music etc.DJ Choice

Education, Entertainment, Audio Book, News etc.

Mobile SpecificPrograms

-Ch. BLUE-(1)

In-House

- Allocate programs specific for mobile environments ( Short Movies, Animation, Mobile Drama etc.) - Shorter content compared to conventional contents - Will be used for broadcasting services during emergency - 21 hours per day ( 8 hours new program per day )

Information(TBD)

Data broadcasting related with Video & Audio Channels and Information Data broadcastingData

In-House and DP Lease

Commercial Broadcasting started with 7 Video and 20 Audio Channels and number of channels will be increased to 14 Video,25 Audio and Data channels.

Terrestrial TV(3)

TDBSimultaneous retransmission of Major Terrestrial TV

4. Brief Introduction of TU Media - History

The policy direction for satellite DMB was determined by the KBC

Technical standards for satellite DMB were established by MIC (System-E)

The international register for satellite network was appliedSepSep

FebFeb

AprApr

20012001

20022002

20032003

TU Media Corp. was established. DecDec

20042004

The broadcasting Law was revised. Hanbyul satellite for DMB service was successfully launched in Orbit.MarMar

TU Media Corp. was authorized as Satellite DMB Service Provider DecDec

TU Media Corp started Satellite DMB Field Trial. JanJan

20052005 TU Media Corp started commercial broadcasting of Satellite DMB Service MayMay

Technical Specification of Satellite DMB Terminal releasedNovNov

Reach 100,000 subscribersJulyJuly

4. Introduction of TU Media - Shareholders

FoundationPeriod

FoundationPeriod

Formation of Consortium(November 2003)

Foundation of New Entity(May, 2003)

Paid-in Capital: $135 million

Compositionof Stakes

Compositionof Stakes

CompanyComposition

Ratio

Remark

MajorShareholder

MajorShareholder

• Responsibility for management• Providing Network 28.5%

LargestShareholder

LargestShareholder

• Foreign Strategic Partner9.5%MBCO

Terrestrial Broadcasting Co.

Samsung(SEC), LG(LGE), Pantech & Curitel, etc.

34.8%

15%• Key business partner in the Supply Value Chain

PP1), Manufacturer, IT Co., etc.

12.2%

OtherShareholder

OtherShareholder

• Key business partner in the Supply Value Chain

SK Telecom

TU Media Corporation was founded in Dec, 2003 and funded with the capital of $135 million until May, 2005.

Major shareholders consist of leading players in the value chain.

Business Model

Market Forecast

Contents Contents

11

22





1. Business Model

Subscription fee from subscribers will be the major source of revenue. TU will share its revenue with business partners such as PP and CP.

SubscriberSubscriber AgencyAgencyTU Media

(Satellite DMB Operator)

TU Media

(Satellite DMB Operator)

Network Installer

(Satellite/Gap Filler)

Network Installer

(Satellite/Gap Filler)

Program ProviderProgram Provider

Contents ProviderContents Provider

Operation Fee

※ Subscription Fee: Initial Fee ( GBP 11 ) Monthly Fee ( GBP 7 )

Contents

Profit Share

Commission

Subscription Fees/

Monthly Fee

Subscriber Fees

2. Market Forecast

2005 2006 2007 2008 2009 2010

6001,400

2,700

4,300

5,8006,600

(Units : 1,000 subscribers )

Expected Subscribers

Target number of subscribers for Satellite DMB service will be 0.6M by 2005 and expected to reach 6.6M by 2010.

(Unit : 1 Million USD)

ExpectedRevenue & Profit





Commercial Service Result of first 4 months

Detail demographics of TU customers

Preferred content from TU customers

Watching behaviors

Contents Contents

11

22

33

44

Commercial service of Satellite DMB started on May 1st, and subscribers increase in number daily (average of 1,200)

Commercial Service Period

Commercial Service Period ’05.5.1 ~ 05.8.30 ’05.5.1 ~ 05.8.30

ContentsContents Video: 9 Ch. (News, Music, Drama, Movie, game, Sports, Education, Ch.Blue)

Audio: 25 Ch. ( DJ Ch - 5Ch, Variety Ch - 4Ch, Non-stop Music Ch - 16Ch)

Video: 9 Ch. (News, Music, Drama, Movie, game, Sports, Education, Ch.Blue)

Audio: 25 Ch. ( DJ Ch - 5Ch, Variety Ch - 4Ch, Non-stop Music Ch - 16Ch)

SubscriberSubscriber

Total Number of subscribers: about 150,000 • Mobile Phone Combined: 93.5% • Car Receiver : 7.5%

Total Number of subscribers: about 150,000 • Mobile Phone Combined: 93.5% • Car Receiver : 7.5%

MarketingMarketing Commercial Ad & Promotion & Event (subway, university, etc.) Commercial Ad & Promotion & Event (subway, university, etc.)

TerminalTerminal 7 Mobile Phone Combined and 4 Car Receiver are available for Service 7 Mobile Phone Combined and 4 Car Receiver are available for Service

PopularContentsPopular

Contents Drama > Channel Blue > Game > News > Movies > Korea Pop AudioDrama > Channel Blue > Game > News > Movies > Korea Pop Audio

DistributionChannel

DistributionChannel Through SKT, KTF, & LGT & Own Distribution Network Through SKT, KTF, & LGT & Own Distribution Network

1. Commercial service result of first four months

,

Female, 35%

Male, 65%

※ Note : Based on TU Subscribers on ’05.8.4,

Percentage by SexPercentage by Sex

Male, age groups between early twenties to early thirties are major customer group of TU Media

2. Detail demographics of TU customers

under 194%over 40

24%

20~2419%

25~2926%30~34

16%

35~3911%

Percentage by Age GroupPercentage by Age Group

MALE : 62% 20~30 Age Group : 72%

26%65%

Suburb18%

Urban82%

Percentage by RegionPercentage by Region

2. Detail demographics of TU customers

Young male who live in Metropolitan areas use Mobile-phone combined units to watch satellite DMB services

Car6%

M-Phone94%

Percentage by types of TerminalPercentage by types of Terminal

Urban Areas : 82% Mobile-Phone Terminal : 94%

94%82%

Video74%

Audio26%

On average, daily usage of TU service is around 57~ 80 minutes (July 2005 )

During Primetime, both Video & Audio channels are similar in popularity

14

8

8

10

13

21

0 10 20 30

Channel Blue

Game

Movies

Drama

News

VideoVideo

Total: 74%

Others

7

2

2

2

3

3

7

0 10

Korean Pop

Debut/ New Music

Korean “Trot”

Hit Chart

K. Pop 90’s

Mobi Club

AudioAudio

Total: 26%

Others

3. Watching Behaviors - Contents

74 %

Represents the total percentage of users throughout the day(July 2005)

Use of TU service generally begins at 7 in the morning, and maintains a steady stream of users, reaching

peak points from Morning rush hour to Evening rush hour (6:00 PM~8:00 PM).

3. Watching Behaviors – Usage by hours

6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 0:00 1:00

FIXED TV

S-DMB





Synergy of Fixed and

Mobile Broadcasting

Contents Contents

11

1. Synergy of Fixed and Mobile Broadcasting

- Terrestrial- Cable- Satellite

- Terrestrial- Cable- Satellite

- Satellite DMB- Terrestrial DMB- Satellite DMB- Terrestrial DMB

FixedBroadcastingFixedBroadcasting

Mobile BroadcastingMobile Broadcasting

Promoting Social WelfarePromoting Social Welfare

- Meet public demand for watching TV in mobile environments.

- Provide efficient communication tool for emergent situation.

- Offer effective tools for education by delivering educational programs.

- Meet public demand for watching TV in mobile environments.

- Provide efficient communication tool for emergent situation.

- Offer effective tools for education by delivering educational programs.

Promoting IndustryPromoting Industry

- Contribute to contents industry by creating new market.

- Stimulate IT and Manufacturing industry.

- Lead to growth of national economic.

- Contribute to contents industry by creating new market.

- Stimulate IT and Manufacturing industry.

- Lead to growth of national economic.

The advent of DMB services not only promote broadcasting industry but also promote social welfare by creating new market for industry and

satisfying the public demand for information.

TU Media Corp. Finance Bldg., 84, Taepyeongno 1-ga,Jung-gu, Seoul 100-768, KoreaTel No : 82-2-6323-4149 Fax No : 82-2-6323-4411 http://www.tu4u.com ( [email protected] )

Thank yoU

tu media corp

Documents