SES SA FDR (Class A) · EURONEXT:SESG
SES SA FDR (Class A) — SES — Investor Day (2006)
27 slides from SES SA FDR (Class A)'s investor day presentation, 2006
Slide 1: Evolution of the terrestrial TV distribution methods: Threat or Opportunity?
Evolution of the terrestrial TV distribution methods : Threat or Opportunity?
Slide 2: Foreword
Foreword The domains that were primarily investigated are : – A) the emergence of new forms of video distribution namely : • DVB-T, • TVoDSL, TVoWimax • TV distribution on mobile infrastructures such as DVB-H,DMB,3G,Mediaflo and HSPDA – B) the emergence of new TV consumption patterns such as : • Per
Slide 3: Agenda
Agenda • SES view of the evolution of TV consumption patterns • SES view of the evolution of the competitive landscape • The impact of these evolution on SES clients : the broadcasters • The key differentiation of SES GLOBAL • Conclusion 3
Slide 4: Evolution of TV - framework
Evolution of TV - framework TV consumption is expected to progressively evolve towards usages that are radically different from the model of linear Broadcasted TV in the living room • TV service providers will gradually Wherever provide more control to the customer as Spatial independence far as : •
Slide 5: Evolution of TV consumption
Evolution of TV consumption We expect the evolution of TV services (2010-2015) to progressively lead to: • More TV screens as a consequence of the emergence of TV systems adapted to new usages • More time spent watching TV due to better fit between devices and context of usage : • An even better TV
Slide 6: Evolution of TV – More TV screens
Evolution of TV– More TV screens We expect more TV screens as a result of the emergence of TV systems adapted to new usages : • The installed base of TV-enabled Mobile devices is set to dramatically increase due to cellphone subsidization policies and competition between the cellular operators • Dev
Slide 7: Evolution of the TV – more time watching TV
Evolution of the TV – more time watching TV We expect more time spent watching TV due to better fit between devices and context of usage : • Place shifted TV : Early commercial experiences in Europe and US with watching TV via the mobile demonstrates that this usage is complementary to watching TV i
Slide 8: Evolution of the TV context – a better TV experience
Evolution of the TV context – a better TV experience We expect that TV will evolve towards an even better entertainment experience, mainly driven by the emergence of HDTV : All prerequisites for market development growth exist : • The HDTV market creation is driven by a strong eco-system of content
Slide 9: Agenda
Agenda • SES view of the evolution of TV consumption patterns • SES view of the evolution of the competitive landscape • The impact of these evolution on SES clients : the broadcasters • The key differentiation of SES GLOBAL • Conclusion 9
Slide 10: Evolution of the competitive landscape
Evolution of the competitive landscape We expect to see the TV competitive landscape evolve in 3 directions : • We expect the SD TV distribution market competitive intensity to increase as a consequence of the development of alternative terrestrial TV distribution infrastructures : • We expect the c
Slide 11: Competitive Landscape – competing technologies
Competitive Landscape – competing technologies On top of the historical cable technologies , four upcoming technologies are likely to be deployed and to impact the competitive structure of the video distribution Incumbent telcos and competitive providers (UNE players/DSL XDSL unbundlers) are leverag
Slide 12: Competitive Landscape – cable TV distribution
Competitive Landscape – cable TV distribution The Cable industry presents a very different strategic threat in Europe and in USA, hence its impact on the evolution of the TV distribution market is expected to be dramatically different : Europe USA • Limited reach in large countries • 89 % homes pass
Slide 13: Competitive Landscape – Telco TV distribution
Competitive Landscape – Telco TV distribution The incumbent Telco players’ motivations to get into Video are not dramatically different in Europe and in USA…they are purely defensive : – The telco core business (providing communications services to the HH) is threatened by competitive players levera
Slide 14: Competitive Landscape – Telco TV distribution – commercial factors
Competitive Landscape – Telco TV distribution The Telecom TV distribution plays will be limited in reach due to several technical and commercial factors : – Commercial factors limiting the telecom operator’s ability to provide TV service: • The telco must retain the broadband internet access relatio
Slide 15: Competitive Landscape – Telco TV distribution
Competitive Landscape – Telco TV distribution Telecom operators that are not going for FTTX type of strategies will be faced with a bandwidth crunch as soon as the HDTV kicks in . • Technology deployed by the incumbent PTO’s accessing Europe will not enable them to provide multiple HDTV streams and
Slide 16: Competitive Landscape – Telco TV distribution
Competitive Landscape – Telco TV distribution In both Europe and North America, the potential reach of the Telco by 2010 to support the distribution of multiple HDTV channels will be limited by their broadband market share and their access technology. TOTAL Western European (*) TV HH : 160 M PC HH :
Slide 17: Competitive Landscape – DTT
Competitive Landscape – DTT The DTT is mainly a “politically driven”, “Europe only” phenomenon leading to the analogue switch off by 2012 at the earliest • In theory must be 100 % at completion of plan (2008-2012) Reach • In practice reach is limited to 85% in some countries due to uneconomical natu
Slide 18: Competitive Landscape – Broadband wireless Access
Competitive Landscape - Broadband wireless Access Broadband Wireless Access technologies are not expected to emerge before the end of the decade. WiMAX UMTS/HSDPA ► (U)LL / PTO bypass ► Network widely deployed Strengths ► Nomadic solution / mobility potential ► Rapid deployment of software upgrade ►
Slide 19: Competitive Landscape – HDTV distribution
Competitive Landscape – HDTV distribution Satellite enjoys unique sustainable commercial advantages associated with its ubiquitous coverage, innovative/media eager customer base, proven service reliability and customer service…combined with a unique delivery cost advantage Fiber to the home PTO PTO
Slide 20: Competitive Landscape – TV Distribution conclusion
Competitive Landscape – TV Distribution conclusion US Pay TV market split - % of total TV HH's The emergence of new form of terrestrial TV distribution 120.00% 100.00% 95.81% is unlikely to significantly impact the DTH TV 100.00% 4.09% 10.49% transmission in a 10 years horizon 80.00% 35.82% 36.67% 6
Slide 21: Agenda
Agenda • SES view of the evolution of the TV consumption patterns • SES view of the evolution of the competitive landscape • The impact of these evolution on SES clients : the broadcasters • The key differentiation of SES GLOBAL • Conclusion 21
Slide 22: Broadcaster's impact – the "TV Windows"
Broadcaster’s impact – the “TV Windows” With the multiplication of screens and TV usages, we expect the broadcasters to enter into multiple content monetization models of their own productions / exclusive rights through the introduction of “TV” Windows: Potv Linear Window Preview NVod window Window
Slide 23: Broadcaster's impact – operational complexity
Broadcaster’s impact – operational complexity The broadcasters are impacted by a modification of their funding model, complexification of their business : Complementary Functions required Funding • Move towards pay model due to advertising revenue decrease model • Move towards a multiple pay model e
Slide 24: Agenda
Agenda • SES view of the evolution of the TV consumption patterns • SES view of the evolution of the competitive landscape • The impact of these evolution on SES clients : the broadcasters • The key differentiation of SES GLOBAL • Conclusion 24
Slide 25: SES – key differentiation
SES – key differentiation Unlike many other satellite operators, SES had anticipated the market evolution and already addressed most of the threats and opportunities associated with the sector’s evolution from an infrastructure and service standpoint : • Capacity availability to support mass market
Slide 26: Agenda
Agenda • SES view of the evolution of the TV consumption patterns • SES view of the evolution of the competitive landscape • The impact of these evolution on SES clients : the broadcasters • The key differentiation of SES GLOBAL • Conclusion 26
Slide 27: Conclusions
Conclusions • IPTV-telco TV is a sub market from the broadband market, hence the IPTV market will develop to reach a relevant TV presence by 2015. Starting 2010, the IPTV market development for telecom operators that have not deployed FTTx will be limited due to the inability of their infrastructure