Orange Sa · EURONEXT:ORA
Orange Sa — Investor Presentation (April 2008)
26 slides from Orange Sa's investor presentation, Apr 1, 2008
Slide 1: Orange content strategy
Orange content strategy Hervé Payan content division vice president, partnerships and services April 1st, 2008
Slide 2: Agenda
agenda 1. Orange strategy : content everywhere 2. focus on TV 3. new developments 4. conclusion 2
Slide 3: There are four key content areas to address
there are four key content areas to address Western Europe* digital paid content (€bn) 2007 – 2011 CAGR 23.5 1,3 8% 19.2 2,5 20% 1,2 1,9 12% 14.7 1,9 1,6 0,9 1,0 1,1 17,8 9% 14,6 11,7 2007 2009 2011 digital pay TV / VoD Music / Perso Games Infotainment Î the overall content market is expected to gro
Slide 4: Orange strategy is "content everywhere"
Orange strategy is “content everywhere” acquire and keep differentiate broadband from access customers competitors develop audience develop ARPU PC grow TV grow direct advertising pay content revenues and airtime mobile Î in Europe, 11% of Orange ADSL customer base is triple play end of 2007, 4 comp
Slide 5: Our position in the value chain
our position in the value chain manage customer build offer deliver offer relationships content create and publish aggregate networks access and marketing customer produce content content operations delivery and selling care content • create, • publish • package content • manage user content • off-l
Slide 6: A presence in every online game segment
a presence in every online game segment hardcore games game complexity free-to-play / item selling casual games games time investment by gamer in game Î main business purpose is to develop customer ARPU 6
Slide 7: Orange must maintain a significant position in online music
Orange must maintain a significant position in online music… … because music is key for the young and online music customers have a high ARPU €/month +117% Orange will leverage its position on fixed & 78 mobile to build for an integrated proposition 36 I listen to some new music on the radio and m
Slide 8: Agenda
agenda 1. Orange strategy : content everywhere 2. focus on TV 3. new developments 4. conclusion 8
Slide 9: Towards a complete cross-platform TV proposition in our markets
towards a complete cross-platform TV proposition in our markets family consumption live TV on-demand 3D TV (mobile in 2008, PC and TV in 2009-2011) catch-up TV (TV, mobile, PC) TV personal video recorder (TV) HDTV (TV, mobile) soccer (TV, mobile) partners’ bouquets (TV, subscription PC mobile) VOD (
Slide 10: Leveraging our experience in France and benefiting from scale effects across our footprint
leveraging our experience in France and benefiting from scale effects across our footprint UK Poland 1,138 K customers 2,018 K customers 1,798k customers 223k customers Belgium France 228k customers Slovakia 7,296 K customers 493k customers 7,407k customers Switzerland Romania 1,012k customers Spain
Slide 11: In France, Orange TV is included in an attractive triple play offer
in France, Orange TV is included in an attractive triple play offer € 29,90 / month € 34,90 /month or – 8 Mbps internet access – 18 Mbps internet access — free TV set top box — Orange free bouquet (around 60 TV channels and services) all included — access to premium content (Canalsat/TPS or Oran
Slide 12: Mobile TV: new unlimited TV / VOD options launched March 6th, 2008
mobile TV : new unlimited TV / VOD options were launched March 6th, 2008 € 9 / month € 6 / month TV max TV TV / VOD unlimited access to 60+ unlimited access to 20+ TV channels & 3,500 TV channels & 3,500 videos videos of which of which Orange World unlimited 7/24 access (weather forecast, road traff
Slide 13: TV is key in acquiring & keeping broadband customers
TV is key in acquiring & keeping broadband customers FT group IPTV subscribers FT group mobile broadband* (in 000’s) subscribers (in 000’s) fix m e ob U Q4/06 – Q4/07 : +311% d U Q4/06 – Q4/07 : +325% il e 1200 12 000 1000 10 000 800 8 000 600 6 000 400 4 000 200 2 000 0 0 4Q04 1Q05 2Q05 3Q05 4Q05 1
Slide 14: In France, content & usage are taking off
in France, content & usage are taking off fix m TV over ADSL e TV on mobile ob d il e IPTV customers (000s) average TV usage per active user in France (mn / month) +99% +105% 1.149 577 88 43 200 26 dec-05 dec-06 dec-07 dec. 05 dec. 06 dec. 07 > 430,000 pay TV customers, end of 2007 standard defini
Slide 15: In France, we have been consistently leading this market and we intend to continue doing so
in France, we have been consistently leading this market and we intend to continue doing so 1st to deploy in France new developments 1st to deploy today TV in non ADSL eligible worldwide zones 2007 DVBH web TV portal etc. past achievements on the Internet Orange sports TV 2002 VoD on PC
Slide 16: Agenda
agenda 1. Orange strategy : content everywhere 2. focus on TV 3. new developments 4. conclusion 16
Slide 17: Our vision for mass market mobile TV: the best quality everywhere
our vision for mass market mobile TV : the best quality everywhere 3G / 3G+ Wifi / UMA DVB-H Î unlimited number of Î unlimited number of channels simultaneous viewers Î VOD Î limited (~15/20) number of non- Î interactive services interactive channels ÎHD Mobile TV already launched ÎFuture launch in
Slide 18: Extending TV functionality to IPTV non eligible zones in France, Spain and Poland
extending TV functionality to IPTV non eligible zones in France, Spain and Poland voice today Internet ADSL satellite voice tomorrow + Orange TV (incl. DTT) & VoD ADSL Internet 18
Slide 19: Orange's move into DTH in France to extend triple play coverage
Orange’s move into DTH in France is to extend its triple play coverage to areas not reachable by Orange TV over DSL 100% ~ 90% triple play ADSL eligibility ~ 70% eligibility fixed lines covered >5 Mbps 1 Mbps Mpeg4 triple play penetration ~ 15% 0 2008 time satellite introduced 19
Slide 20: Orange Sports TV: more than a channel
Orange Sports TV : more than a channel Ora broadcast feed interactive service n ge Sp o functions of the buttons on remote control bes pric rts T t in e o Vw Sp nova f the on th ons tion e ora at t 200 he 8 events dedicated channels adapted to rights owned The service consists in links towards progr
Slide 21: Ligue 1 Everywhere: the very best of football on Orange
Ligue 1 Everywhere : the very best of football on Orange Orange.fr TV d’Orange* live : Saturday night big match, live at 9 pm. available on VoD, from sunday 12 pm : — L1 magazine — matches recaps — top goal, top save, etc. * mock-up interface Orange Mobile business rationale 8 live matches 29%
Slide 22: Agenda
agenda 1. Orange strategy : content everywhere 2. focus on TV 3. new developments 4. conclusion 22
Slide 23: Marketing of network- and terminal-agnostic "content everywhere" usage
marketing of network- and terminal-agnostic “content everywhere” usage music purpose is to differentiate from access competitors the fully integrated operator capable of differentiate offering “content- from access competitors everywhere” will enjoy a premium in the eyes of its develop customers a
Slide 24: Appendix
appendix 24
Slide 25: "One" (Orange Austria) will launch DVB-H for Euro 2008
“One” (Orange Austria) will launch DVB-H for Euro 2008 DVB-H will be launched in June for “Euro 2008” Offer Business model basic pack: 12 TV + 4 radio channels network investment made by Media & Broadcast (TDF Group) 1 2 3 4 5 6 7 8 “One” will assume DVB-H distribution through customer subscrip
Slide 26: Orange France is planning a DVB-H launch in H1 2009
Orange France is planning a DVB-H launch in H1 2009 on top of the 3 channels pre-empted by the public service, 36 candidates have applied to the “Télévision Mobile Personnelle” licenses candidates to only 13 channels will be retained in addition to the 3 public ones a mobile TV license: major me