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Jean-Philippe HAAG Senior Industry Advisor Telecoms / Media. DigiWorld Summit 2013 Video Cord-Cutting. Europe : Diverse Video landscapes. Fragmented markets Diverse TV and telecoms markets Cable / Telecoms / Satellite, Pay TV / Free TV Digital Video still in infancy
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Jean-Philippe HAAG Senior Industry Advisor Telecoms / Media DigiWorld Summit 2013 Video Cord-Cutting
Europe : Diverse Video landscapes • Fragmented markets • Diverse TV and telecoms markets • Cable / Telecoms / Satellite, Pay TV / Free TV • Digital Video still in infancy • Development : 31 M Netflix subscribers in the USA, 5 M in Europe • Market structure : 75 VOD (would be) providers in France SG estimates Idate 2013 – VideoCordCutting
Cablecord-cutting • Not new : e.g. Netherlands, Sweden. • Essentially Basic TV cord-cutting. Pay TV still growing so far • Little impact yet. What matters currently is Cable vs. Telecoms competition • Broadband and Telephony contribute more to revenues and free cash flow than TV • Possible mitigations for Cable / Telecom operators : Co-marketing of OTT offers, QoS / CDN, Broadband volume tiers… UPC Western Europe Idate 2013 – VideoCordCutting
OTT : No silver bullet + Reach ? Streaming / CDN costs : material = Content costs = Marketing / subscribers acquisition costs + RD costs – unlike traditionnal Media, digital Media are RD intensive Low price Low Costs Need for operations excellence Idate 2013 – VideoCordCutting