Global Digital Broadcasting - IPTV, Smart TV, Web and Mobile TV Trends

• Publication date: November 2011

Intense competition as technology advancements impact upon TV broadcastingWe are now starting to see the more widespread availability of digital TV and this has revealed a clear point of difference between the strategic directions being taken by the telecoms and broadcasting industries. Less emphasis is being placed by the broadcasters on the Internet-based opportunities and more on adding TV-based entertainment to their offerings. They do have a...

Intense competition as technology advancements impact upon TV broadcastingWe are now starting to see the more widespread availability of digital TV and this has revealed a clear point of difference between the strategic directions being taken by the telecoms and broadcasting industries. Less emphasis is being placed by the broadcasters on the Internet-based opportunities and more on adding TV-based entertainment to their offerings. They do have access to good quality entertainment, which is protected through rights and royalties, and this helps them to withstand the tsunami of technology which is undermining their business model.
At this stage the effort of the broadcasting industry is clearly focussed on digital TV - but they also aware that there is a continuing shift towards Internet-based TV. Initially broadcasters feared the impact of DVR with its ad skipping capabilities and now it is to a worry that viewers will move away from traditional TV entirely in favour of Internet TV. These pressures will impact upon the broadcasters cost margins, as it will force them to pour more money into programming and marketing.
There is currently much attention on TV sets becoming Internet enabled with multiple function screens. Known as Smart TVs, these new Consumer Electronics (CE) devices are fast becoming the focus for home media centres with some already able to stream movies and content straight from the Internet and allow access to real-time data and interactive services. It is predicted that these TVs will soon rise sharply in popularity and rival the gaming consoles which currently offer this type of Internet accessibility.
The traditional broadcasters are also competing with the rise of Online Video, also known as Web TV. Web TV is where consumers view programs and videos, often user-generated, by a PC or mobile device. The growth of online video has spawned a number of different business models – some more successful than others. YouTube was one of the first to prove early-on that watching videos on the Internet, particularly user-generated videos, could be hugely popular. At first these types of short online video services were only be accessed via a PC over the Internet, but this soon grew to include mobile and tablet devices. Today, services like Netflix, allow a user to not only watch movies and TV programs on a PC, but also by streaming to TV, Wii, Xbox, PS3, mobile and other devices.
While many industry commentators have hoped during the past few years that mobile TV, representing a convergence between the mobile and broadcasting sectors, would lead to considerable changes in the way people used the technologies and services offered by both industries, this has not year really been achieved. While some mobile users may occasionally access mobile video services – a number of barriers remain which prevent consumers taking to mobile TV services in sufficient numbers for ‘tipping points’ to be reached. These include a continuing lack of awareness of the mobile TV and video services on offer, and their cost.
BuddeComm’s new report, Global Digital Broadcasting – IPTV, Smart TV, Web and Mobile TV Trends, gives the latest insights into the developments occurring in the Digital TV, IPTV, Web TV and Mobile TV sectors. The television broadcasting industry has experienced incredible changes over the past couple of years due to competitive and challenging market conditions combined with advances in technology. The networks are facing intense competition and vying for both viewers and advertising dollars as consumers have more choice based on the different transmission technologies. This report explores key issues and opportunities presented by these changes. The report includes analyses, statistics, forecasts and trends as well as a unique perspective on how the TV broadcasting sectors are unfolding differently around the world by incorporating case studies written by BuddeComm’s senior analysts.
Examples of key insights:
In mid 2011 there were nearly 50 million IPTV subscribers worldwide and the market had grown by around 30% between 2010/2011.
In recent times, viewing traditional movies and TV programs online has gained popularity and services like Netflix have emerged.
The developed world has moved closer and closer to all digital broadcasting and over the next five years, digital technologies are set to spread across all segments of the entertainment and media industries.
With the advent of digital television and the launch of a number of new digital FTA channels, Australian subscription TV (STV) operators have been feeling the squeeze as viewers were quick to take advantage of the new conditions.
The New Zealand government originally planned to switch off analogue TV by 2015 or when 75% of homes have digital TV service. But with digital TVs in more than 80% of homes by late 2011, the first region set for the changeover is now in September 2012 with all other regions set to be completed by late 2013.
A significant trend in the US digital TV market is the shift towards video-on-demand and other forms of online video viewing, a trend which will continue to strengthen along with the growth of broadband networks.
The principal operators in Brazil’s pay TV market are Net Serviços, Sky Brasil, Embratel, Telesp, and Oi TV.In the Middle East, IPTV has expanded beyond the wealthy Gulf region, with services now also available in Turkey and Jordan. However the region is still very much dominated by satellite TV.

VOD Industry

1. Global Digital, Pay TV and Home Theatre Insights
1.1 Key Global Trends for Digital; Pay TV and Home Theatres
1.1.1 Introduction
1.1.2 Key trends
1.1.3 Digital TV
1.1.4 Cable TV
1.1.5 Set-top boxes (STBs)
1.1.6 HDTV
1.1.7 Home theatre market summary
1.1.8 Interactive TV (iTV)
2. Global IPTV and Smart TV Insights
2.1 Key Global Trends for IPTV and Smart TV
2.1.1 IPTV market summary
2.1.2 IPTV market insights
2.1.3 Smart TVs – a game changing moment
2.1.4 Examples of leading IPTV countries
2.1.5 BuddeComm industry news
3. Global Online Video Media and Web TV Insights
3.1 Key Global Trends for Online Video
3.1.1 The power of online video media
3.1.2 Killer applications
3.1.3 Delivery trends
3.1.4 Online video media statistics and forecasts
3.1.5 Background: video streaming and P2P
3.1.6 Conclusion: The future of video in telecoms
4. Global Mobile TV Insights
4.1 Key Global Trends for Mobile TV and Video
4.1.1 Mobile TV market summary
4.1.2 Mobile TV market insights
4.1.3 Developed market: Western Europe case study
4.1.4 Developing market: South Africa case study
5. Global Triple Play Insights
5.1 Key Triple and Quad Play Trend
5.1.1 Introduction
5.1.2 The three elements
5.1.3 National broadband networks are ideal for triple play
5.1.4 What went wrong with triple play initially?
5.1.5 The future of triple-play
5.1.6 Key multi-play markets in Europe and Asia
6. Regional Overviews
6.1 North America
6.1.1 USA
6.2 Latin America
6.2.1 Brazil
6.2.2 Chile
6.2.3 Columbia
6.2.4 Peru
6.2.5 Uruguay
6.2.6 Venezuela
6.3 Europe
6.3.1 Market overview
6.3.2 Regulatory issues
6.3.3 IPTV
6.3.4 Video-on-Demand
6.3.5 Mobile TV
6.4 Africa
6.4.1 Overview
6.4.2 Digital TV
6.4.3 IPTV
6.4.4 Mobile TV
6.5 Middle East
6.5.1 Broadcasting overview
6.5.2 Terrestrial TV
6.5.3 Satellite TV
6.5.4 Cable TV
6.5.5 Pay TV
6.5.6 IPTV
6.6 Asia
6.6.1 Overview
6.6.2 China
6.6.3 South Korea
6.6.4 Hong Kong
6.6.5 India
6.6.6 Singapore
6.6.7 Malaysia
6.6.8 Thailand
6.7 Pacific Region
6.7.1 Australia
6.7.2 New Zealand
7. Glossary of Abbreviations
Table 1 – Growth of key TV markets in 2010
Table 2 – Worldwide digital TV subscribers – 2009; 2010; 2014
Table 3 – Regional digital TV subscribers – 2014
Table 4 – Digital TV penetration rate worldwide – 2006; 2009; 2012
Table 5 – Worldwide number of HDTV homes – 2009; 2012; 2015
Table 6 – Number of 3D TV homes in North America, Europe and Asia – 2015
Table 7 – Worldwide networked TV shipments – 2008 - 2009; 2012
Table 8 – Number of US homes using iTV services – 2002; 2009
Table 9 – Worldwide IPTV subscribers – 2010; 2012; 2014
Table 10 – China IPTV subscribers – 2004 - 2012
Table 11 – PCCW broadband subscribers – 2000 - 2010
Table 12 – PCCW NOW TV subscribers and ARPU – 2003 - 2010
Table 13 – France - IPTV subscribers, proportion of DSL base – 2004 - 2012
Table 14 – KPN IPTV subscribers – 2008 - 2011
Table 15 – Telecom Italia IP TV subscribers – 2007 - 2011
Table 16 – Fastweb IPTV subscribers – 2008 - 2009
Table 17 – Market share of top online VoD providers in the US – mid 2011
Table 18 – Subscribers to Netflix – 2010; Q1 2011
Table 19 – Global revenue from online video – 2008; 2012
Table 20 – Online video streams – top online video properties in the US – Various months - 2007; 2009; 2010
Table 21 – Online video unique visitors – top online video properties in the US – May 2010; Jan 2011; Sep 2011
Table 22 – Worldwide mobile TV subscribers
Table 23 – Brazil - Pay TV operators by technology – 2010
Table 24 – Brazil - Pay TV subscribers and penetration – 1999 - 2011
Table 25 – Brazil - Pay TV market share by technology – 1998 - 2011
Table 26 – Brazil - Pay TV operators – market share – 2000 - 2011
Table 27 – Net Serviços – pay TV subscribers – 2000 - 2011
Table 28 – Brazil - Cable TV subscribers and penetration – 1998 - 2011
Table 29 – Brazil - MMDS subscribers and penetration – 1998 - 2011
Table 30 – Brazil - DTH subscribers and penetration – 1998 - 2011
Table 31 – Chile - Pay TV subscribers and penetration – 2006 - 2011
Table 32 – Chile - Pay TV technologies – market share – 2006 - 2011
Table 33 – Chile - Pay TV operators – market share – 2006 - 2010
Table 34 – VTR – pay TV subscribers by technology – 2000 - 2011
Table 35 – Movistar (Telefónica Chile)– satellite TV subscribers – 2006 - 2011
Table 36 – Claro – satellite and cable TV subscribers – 2006 - 2011
Table 37 – Chile - Cable TV subscribers and penetration rates – 1995 - 2011
Table 38 – Chile - Satellite TV subscribers and penetration – 2006 - 2011
Table 39 – Columbia - cable TV subscribers and penetration rates – 2000 - 2010
Table 40 – Columbia - major cable-TV operators’ market share – 2004 - 2010
Table 41 – Columbia - satellite TV subscribers and penetration rates – 2000 - 2010
Table 42 – Columbia - satellite TV operators’ market share – 2004 - 2010
Table 43 – Peru - pay TV subscribers and penetration rates – 1998 - 2011
Table 44 – Peru - pay TV operators’ market share – 2002 - 2011
Table 45 – Uruguay - pay-TV subscribers and penetration rates – 2001 - 2011
Table 46 – Venezuela - pay TV subscribers and penetration rates – 1997 - 2011
Table 47 – Venezuela - major pay TV providers – market share – 2010
Table 48 – Western Europe digital TV households, incl. select countries – 2005-2007; 2009; 2011
Table 49 – Europe - Pay DTT households and providers – January 2011
Table 50 – TV revenue, select European countries – 2005 - 2010
Table 51 – Western Europe digital TV households, incl. select countries – 2006; 2008; 2012
Table 52 – Cable and satellite TV home penetration in selected European countries – 2011
Table 53 – DTV penetration in selected European countries – Jun 2011
Table 54 – Europe - IPTV household penetration – 2008 – 2010
Table 55 – Mauritius Telecom My.T triple play pricing – 2008 – 2011
Table 56 – Maroc Telecom IPTV pricing – 2011
Table 57 – Maroc Telecom MT Box pricing – 2011
Table 58 – YES revenue and profit – 2007 - 2011
Table 59 – YES satellite TV subscribers, market share and ARPU – 2002 - 2011
Table 60 – du IPTV subscribers – 2008 - 2011
Table 61 – China - Overview of cable TV market – December 2010
Table 62 – China - Cable TV subscriptions and annual growth – 1996 - 2012
Table 63 – China - Forecast cable TV subscribers and household penetration: 2011 - 2012; 2015
Table 64 – China - Digital cable TV subscribers and penetration rate – 2002 - 2012
Table 65 – China - Forecast digital cable TV subscribers and percentage of cable TV subscribers: 2011 - 2012; 2015
Table 66 – China - Digital pay TV subscribers – 2005 - 2009
Table 67 – China - IPTV subscribers – 2004 – 2012
Table 68 – South Korea - DTH subscribers – 2002 – 2011
Table 69 – South Korea - Cable TV operators and subscribers – Q2 2010
Table 70 – South Korea - Analogue and digital cable TV subscribers – 2002 – 2010, 2012 (e)
Table 71 – South Korea - IPTV subscribers by operator – 2006 - 2011
Table 72 – South Korea - IPTV growth by channels, content providers, after-school classrooms – 2008 - 2010
Table 73 – South Korea - IPTV real-time and pre-IPTV subscribers – 2008 - 2010
Table 74 – HKBN triple play subscribers, ARPU and IDD traffic volume – 2003 – 2010
Table 75 – PCCW NOW TV subscribers and ARPU – 2003 - 2010
Table 76 – SingTel’s mio TV subscribers – 2007 - 2011
Table 77 – Conversion of analogue to digital TVs – Australia versus New Zealand – 2010 - 2011
Chart 1 – Growth of Key TV markets in 2010
Chart 2 – France - IPTV subscribers, proportion of DSL base – 2004 – 2012
Chart 3 – Worldwide mobile TV subscribers annual change – 2009 - 2014
Chart 4 – Evolution of pay TV in Brazil – 1998 - 2011
Chart 5 – Brazil - Pay TV technologies at a glance – 1998 - 2011
Chart 6 – Brazil - Pay TV operators’ market share at a glance – 2010
Chart 7 – Chile - Pay TV technologies at a glance – 2006 - 2011
Chart 8 – Chile - Pay TV operators’ market share at a glance – 2010
Chart 9 – Evolution of cable TV in Chile – 1995 - 2011
Chart 10 – Columbia - pay TV - cable/satellite market share – 2000 - 2010
Chart 11 – Peru - pay TV market share at a glance – 2008 - 2011
Chart 12 – Uruguay - pay TV market share – June 2010
Chart 13 – Venezuela - major pay TV market share at a glance – 2010
Chart 14 – China - Cable TV subscribers and digital TV penetration – 1996 – 2010
Chart 15 – Household conversion analogue to digital TVs in Australia – 2009 - 2011
Chart 16 – Pay TV revenue per operator in Australia – 1997; 2000; 2005; 2010; 2011
Chart 17 – Household conversion analogue to digital TVs in New Zealand – 2010 - 2011
Exhibit 1 – Background information on FTA and Digital TV
Exhibit 2 – Digital Dividend
Exhibit 3 – Smart TV and Connected TV definition
Exhibit 4 – Yahoo Connected TV
Exhibit 5 – Interactive Program Guides versus Electronic Program Guides
Exhibit 6 – iTV advertising example
Exhibit 7 – Examples of top IPTV carriers worldwide
Exhibit 8 – Smart TV and Connected TV definition
Exhibit 9 – Yahoo Connected TV
Exhibit 10 – ITU IPTV standards development
Exhibit 11 – Examples of online VoD sites
Exhibit 12 – Google Android based TV
Exhibit 13 – Equivalence between access modes and traditional audiovisual use
Exhibit 14 – A first for the industry - Tata Communications and Cisco’s telepresence solution
Exhibit 15 – Telepresence for the home market
Exhibit 16 – BBC iPlayer and ABC iView
Exhibit 17 – Pay-per-view football on the Internet
Exhibit 18 – Definition: Content Delivery Networks (CDN)
Exhibit 19 – The International Webcasting Association (IWA)
Exhibit 20 – Open Mobile Video Coalition
Exhibit 21 – Mobile TV/Video – emerging across the world
Exhibit 22 – First example of video media collaboration
Exhibit 23 – A plethora of mobile TV technologies
Exhibit 24 – Multi-play definition
Exhibit 25 – Net Serviços de Comunicação at a glance
Exhibit 26 – Regional TV broadcasters in South Korea