Evolving iroko TV in a multiplatform ecosystem
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This document provides an overview of Analysys Mason, a global consulting firm focused on telecoms, media and technology. Some key points: - Analysys Mason has over 260 staff across 13 offices worldwide and has been influential in the industry for over 25 years. - They provide consulting services across various areas including strategy, regulation, transactions, research and more. - They have significant experience advising clients on digital switchover (DSO) projects around the world, including case studies from the Netherlands, Sweden and France. - The document discusses some of the risks associated with DSO projects, particularly when short timelines are involved, such as availability of affordable receivers and effective communications campaigns.
Evolving iroko TV in a multiplatform ecosystem
- 1. This document is offered compliments of BSP Media Group. www.bspmediagroup.com All rights reserved.
- 2. Presentation to SABA Digital Infrastructure and Platforms Digital Switchover 19 July 2013 • Robert Schumann
- 3. 2 Contents About Analysys Mason DSO experience Tanzania case study Risks and challenges The future of TV
- 4. 3 About Analysys Mason Analysys Mason is a global specialist in telecoms, technology and media § Analysys Mason is a global specialist in telecoms, technology and media (TMT), with offices on four continents Analysys Masons’ s global presence and experience § We have had a major influence on the industry for more than 25 years: - led the liberalisation of telecoms across Europe and Asia and mediated in policy issues for operators and regulators Assignments completed Analysys Mason offices - supported several hundred transactions and licence acquisition processes for operators and financial institutions - provided strategic and operational support to major operators in the roll-out and expansion of businesses across the sector, enhancing enterprise value § With over 260 staff in 13 offices, we are respected worldwide for our exceptional quality of work, independence and flexibility in responding to client needs
- 5. 4 About Analysys Mason We are uniquely positioned to provide consulting and research to the TMT sectors Consulting § § Transaction support Our focus is exclusively on telecoms, media and technology (TMT). We support multi-billion dollar investments, advise clients on regulatory matters, provide spectrum valuation and auction support, and advise on operational performance, business planning and strategy. § We have developed rigorous methodologies that deliver tangible results for clients around the world. Strategy and planning Operational consulting Regulation and policy Procurement Research Consumer services Enterprise services Telecoms software Regional markets Network technologies § We analyse, track and forecast the different services accessed by consumers and enterprises, as well as the software, infrastructure and technology delivering those services. § Research clients benefit from regular and timely intelligence in addition to direct access to our team of expert analysts. § Our dedicated Custom Research team undertakes specialised and bespoke projects for clients.
- 6. 5 About Analysys Mason Our selected media project experience Case study Key capabilities TV advertising in France Understanding of the nature of the TV advertising ecosystem European media group growth plans Competitive analysis, benchmarking and business planning for production, channel aggregation and Internet expansion plans Telecoms operator football rights Role of premium content, and ways of accessing this content for broadcast Content rights business and regulatory models Evolution of media delivery technologies, for possible regulatory intervention in the content market South American broadcaster DTT strategy Planning of genre and business model for a broadcaster moving to a digital platform Irish government DTT planning Leadership and planning of digital terrestrial television, involving all stakeholders Broadcaster online content distribution strategy Costs and strategy for a broadcaster evaluating alternative platforms for delivering content Asian studio facilities provider business plan Comprehensive business planning (vision, services, clients, pricing, marketing) for a state-of -the-art movie studio facility
- 7. 6 Contents About Analysys Mason DSO experience Tanzania case study Risks and challenges The future of TV
- 8. 7 What is TV? Proliferation of CONTENT TV Proliferation of PLATFORMS Revenue model?
- 9. 8 A framework for DSO Stakeholder Activities Government 1. 2. 3. 4. 5. Regulator 1. Decide on technology and standards 2. Implement licensing framework 3. Manage radio spectrum and coordination matters Industry 1. 2. 3. 4. 5. Develop DSO policy and legal framework Establish and implement staged plan for ASO Develop funding policy and establish fund Establish principles for Help Scheme Establish DSO/ASO Implementation Task Force Develop consumer proposition Establish DTT branding and conformance regime Develop communications plan Plan and deploy DTT network Establish receiver specifications and costs Source: Plum Consulting, Farnborough for GSMA
- 10. 9 Cost of DSO in other countries Country Purpose Amount Source UK Help scheme €693m BBC Marketing activities €230m Digital UK DSO total €4.37b Private + Public Marketing activities €255m Government + PSBs Help scheme €142m Government Help scheme €50 per qualifying HH Government ASO pilots €55m Government DTT rollout €33m Government DTT subsidy €220m Government DSO projects €75m Government DSO total €12b Public, private, viewers Help scheme No special budget Government Marketing activities €5.5m Government France Italy Spain Sweden Source: Digitag
- 11. 10 Netherlands DSO § DTT platform launched in 2003 offering limited free‐to‐air services from the PSB and extensive pay services from Digitenne § Focus on portable and mobile reception: DVB‐H services launched in June 2008 § ASO completed on a single day on 10 December 2006 § Since then, DTT penetration has increased from 3‐5% to 12% of the population – and strong growth continuing Source: Digitag
- 12. 11 Sweden DSO § Launch of DTT services in 1999 offering a largely pay DTT platform operated by Boxer § Attractive programme offer combined with competitive pricing has allowed Boxer to effectively compete with other television operators § Five phases to switch‐off starting in September 2005 and completed in October 2007 § 40% of viewers waiting until last month to purchase DTT receivers Source: Digitag
- 13. 12 France DSO § Launch of DTT services in March 2005 offering viewers 18 free‐ to-air and 9 pay‐DTT services § Combination of MPEG‐2 and MPEG‐4 AVC compression formats § Five HD/DTT services launched § France Télé Numérique set up to manage analogue switch‐off § Two DTT pilot projects completed in 2009 § Analogue switch‐off began in February 2010 for completion by 30 November 2011
- 14. 13 Contents About Analysys Mason DSO experience Tanzania case study Risks and challenges The future of TV
- 15. 14 TV viewers in Tanzania 19% 53% 21% 7% Urban - at least weekly Rural - at least weekly Urban - less frequent Rural - less frequent
- 16. 15 Contents About Analysys Mason DSO experience Tanzania case study Risks and challenges The future of TV
- 17. 16 What are the key risks for DSO, particularly with a short ASO deadline? § Expensive receivers and low engagement from retailers to make receivers widely available in the market § Cost of meeting roll-out and coverage obligations (e.g. when country/broadcast specific features are required) § Poor communications campaigns, leading to confusion about DTT benefits and how to obtain them – this can be particularly damaging in remote communities with poor literacy skills § Insufficient co-ordination with adjacent countries increasing the risk of cross border interference (shorter transition periods may make this more complex) § Inadequate DTT network planning, which may cause delays to network roll-out and switch-on schedules.
- 18. 17 Contents About Analysys Mason DSO experience Tanzania case study Risks and challenges The future of TV
- 19. 18 Summary of relative impact and degree of complementarity of linear and non-linear TV … at least so far Element Key trends over last 10 years Scheduling / type of service ▪ Complementarity of non-linear and linear TV for popular TV series and Device / service Transmission programmes – potentially having a significant impact ▪ Importance of new players offering Internet-based non-linear TV ▪ Simultaneous growth of HDTV and non-linear TV ▪ Simultaneous growth of traditional and non-traditional non-linear TV ▪ Simultaneous growth of traditional transmission TV services (DTT, cable, satellite, IPTV) and broadband/Internet-based networks Consumption ▪ High growth in non-linear TV viewership needs to be put in line with the current evolution of the overall TV market Business model ▪ Although growing fast, non-linear TV revenues still make up a very small part of the whole TV market ▪ We expect non-linear TV to continue to grow – but it could grow: – along with linear TV, i.e. as a complement – at the expense of linear TV, i.e. as a substitute
- 20. 19 Although revenue from online TV is increasing exponentially, it still represents less than 2% of total TV revenues Non-linear revenues as % of total TV revenues in larger EU countries, 2008–11 Total non-linear revenues by source in larger EU countries, 2008–11 (EUR million) 200 1.6% 180 1.4% 160 1.2% 140 1.0% 120 100 0.8% 80 0.6% 60 0.4% 40 0.2% 20 0.0% 0 Germany Spain 2007 Pay-TV France 2008 2009 UK 2010 FTA Free models seems to be gaining momentum in most countries, but pay-TV models are also growing in relative terms in Germany Source: EAO, Analysys Mason Italy
- 21. 20 Future TV consumption – will connected TV be a complement for linear TV, or a substitute? Figures illustrative – for discussion only 250 Connected TV as a substitute – erosion or decline in traditional TV Consumption of online video vs TV (min) Consumption of online video vs TV (min) Connected TV as a complement – traditional TV follows historical trend 200 150 100 50 0 TV Online Video 250 200 150 100 50 0 TV Online Video
- 22. 21 Concluding remarks § Complexity and uncertainty in short, medium and long term - tactical approach for short term - strategic planning for medium to long term § Established and new players have different perspectives - a land of opportunity for new players - limited ‘losses’ for established players, but a threat in medium and long term – prepare tactically! § You are not observer but KEY PLAYERs § Your actions can change current forecasts!
- 23. Africa Cast 2013 Evolving iROKOtv in a multi-platform ecosystem Jason Njoku CEO iROKOtv Africa Cast 2013 / Evolving iROKOtv
- 24. NOLLYWOOD IS THE WORLD’S SECOND LARGEST MOVIE INDUSTRY IN TERMS OF OUTPUT 2
- 25. INTRODUCTION TO NOLLYWOOD WORLD’S SECOND LARGEST MOVIE INDUSTRY BOLLYWOOD 3,000 MOVIES/YEAR NOLLYWOOD REVENUE (EXCLUDING PIRACY) INCREASED FROM $50 MILLION IN 2002 TO ALMOST $300 MILLION IN 2010 (+18% P.A.). By comparison Hollywood revenues equaled $50bn and Bollywood revenues equaled $2.5bn in 2010. VALUE $2.5B / YEAR NOLLYWOOD 2,000 MOVIES/YEAR VALUE $0.3B / YEAR Africa Cast 2013 / Evolving iROKOtv Nollywood films released per year rose from 500 to 2,000 between 2002 and 2010. Remarkably Nollywood exists as a film industry without any government support. NOLLYWOOD HAS A MASSIVE OPPORTUNITY AHEAD
- 26. IN 2009, THIS WAS HOW YOU WOULD CHOOSE A NEW NOLLYWOOD FILM TO WATCH. CONFUSING OR WHAT? 5
- 27. Before evolution could commence, the industry required total disruption
- 28. NOLLYWOOD FANS WANTED BETTER ACCESS TO THEIR SCREEN IDOLS. THEY WANTED A PLATFORM OUTSIDE OF TV AND VCD 8
- 30. INTRODUCTION TO NOLLYWOOD NOLLYWOOD AND THE DIASPORA We heard that Nollywood was popular in the Diaspora. When we launched NollywoodLove, this transitioned from anecdote to fact! Africa Cast 2013 / Evolving iROKOtv
- 31. INTRODUCTION TO NOLLYWOOD NOLLYWOOD AND THE DIASPORA iROKOtv set the content free and made it available in the US, UK and around the world, allowing the Diaspora to access home produced content that resonated with them. Africa Cast 2013 / Evolving iROKOtv
- 33. THE SUCCESS OF iROKOtv THE BUSINESS MODEL EVOLVES WE HAVE SUCCESSFULLY REORGANISED AND STRUCTURED THE NOLLYWOOD MOVIE DISTRIBUTION PROCESS. We buy online movie licences from movie producers. Africa Cast 2013 / Evolving iROKOtv We stream the movies on irokotv.com and make money from ad sales and our subscription service iROKOtv PLUS Additionally we sell licences to airlines, tv channels and partners.
- 34. AFRICANS CONSUME MEDIA - ON A DESKTOP, ON A TABLET BUT THE FUTURE WILL BE MOBILE. 13
- 35. CONSIDERING THE AFRICA ‘CHALLENGE’ AND DEVELOPING THE RIGHT PLATFORMS m.irokotv.com - 47% of traffic comes from Nigeria www.irokotv.com 5.89% of traffic comes from Nigeria 5.89% of users in Nigeria Africa Cast 2013 / Evolving iROKOtv Africa Cast 2013 / Evolving iROKOtv 12
- 36. MOBILE IN AFRICA THE CONVENIENCE OF MOBILE CONNECTIVITY... ...HAS REVOLUTIONIZED HOW PEOPLE ARE ENGAGING WITH DIGITAL CONTENT MOBILE DATA USERS IN NIGERIA % of population 50.8% With the growth of smartphones, mobile video consumption is on the rise for 38.3% entertainment content. 32.8% 27.7% According to Nielsen’s global report of multi-screen media usage, mobile 24.1% 14.7% video is particularly prominent in SSA, where many consumers leapfrog home Internet altogether in favour of the all-in-one smartphone. 72% of SSA online consumers report watching video on mobile devices at least once a month, and almost 40% say they do so at least once a day. Africa Cast 2013 / Evolving iROKOtv 2007 2008 2009 2010 2011 2015e 43% of SSA’s mobile internet users are aged between 16-24 and spend more time consuming mobile video than any other age group.
- 37. THE CHALLENGES WE ARE WAITING FOR AFRICA TO COME ONLINE SSA IS THE WORLD’S FASTEST GROWING INTERNET POPULATION 181.0M 169.7M 155.5M With a growth from 16 million to 118.8 million Internet user between 2005 and 2011 (+40% p.a.). 137.9M 64.0M 118.8M TOTAL SSA Africa Cast 2013 / Evolving iROKOtv 56.6M 49.3M 97.9M 42.1M By 2015, there will be more than 180 million internet users in SSA (+13% p.a.). Nigerian internet users have increased from 4.8 million to 76.7 million between 2005 and 2011 (+59% p.a.). By 2015, there will be an estimated 110 million Nigerian internet users. Overall, internet penetration in urban Africa compares favourably with that in other emerging markets. 71.3M OTHER SSA NIGERIA 36.1M 61.8M 76.7M 88.6M 98.9M 105.7M 109.7M % OF TOTAL POPULATION 2010 2011 2012 2013e 2014e 2015e TOTAL SSA 15.6% 18.5% 21.0% 23.3% 24.7% 25.7% TOTAL NIGERIA 39.0% 47.2% 53.2% 58.0% 60.5% 61.4%
- 38. SSA IS COMING ONLINE. WE HAVE THE PLATFORM AND THE CONTENT LIBRARY TO MEET THEIR NEEDS
- 39. Our Mission PAN-AFRICANAVAILABILITY ON ALL PLATFORMS Africa Cast 2013 / Evolving iROKOtv
- 40. WE WILL REDEFINE HOW AFRICANS ACCESS CONTENT ACROSS MULTIPLE PLATFORMS 17
- 41. Africa Cast 2013 Thank you Africa Cast 2013 / Evolving iROKOtv