Digital Terrestrial Television in Italy

Digital Terrestrial Television in Italy
The strategy of commercial broadcasters in the digital transition
Sarajevo
30 march 2006
0
DTT is enjoying a considerable success due to:
Government effort (ca. 300 Mln €):
– “Open” Legislation (frequencies trading)
– Public subsidies to STB’s (open standards and Interactive)
Big Investments from private Broadcasters: networks + contents (more than 600 Mln €)
– 8 national DTT multiplexes
– New contents with interactivity and Pay Per View services
The DGTVi Role
– Coordination between all broadcaster, producers and distributors
– Interoperability
– A unique “Body” to deal with Institutional Entities
1
Coverage of DTT signal is growing rapidly
Couverture des Multiplex
Multiplex TNT en Italie¹
N.
N. Mux
Mux
Couverture
Couverture de
de
la
la population
population
22
>70%
>70%
22
>70%
>70%
11
>70%
>70%
11
70%
70%
11
54%
54%
H3G
H3G –– Canale
Canale 77
11
50%(?)
50%(?)
Chaînes
Chaînes
locales
locales
>50
>50
N.A.
N.A.
Opérateur
Opérateur
Note: les chaînes locales (actuellement plus de 70) ne sont pas incluses
Sources: DGTVi; Analyse BAH
D Mediaset and RAI have recently
announced the start up of 2 DVB – H MUX
2
Terrestrial TV plays a unique and non-replaceable role in Italy
Characteristics of Terrestrial TV
TV Platform Penetration in Italy
(year-end 2005)
Terrestrial TV is present in all households
– 12 national and 600 local channels
100%
– 21 million terrestrial households
99,0%
– 95% of audience is concentrated on terrestrial
channels
75%
Terrestrial TV is a non-replaceable platform for
public service and commercial broadcasters (both
national and local)
50%
25%
19,5%
– Unique media for 5 million families (older and low
income part of population)
22,8%
5,7% Free*
17,1% Pay
1,0%
0%
Analogue
Digital
Terrestrial Terrestrial
Digital
Satellite
IPTV
– Cable and IP-TV penetration negligible
– Free satellite not suitable for local TV (cost
reasons) and national broadcasters (rights
protection)
(*) Includes STB used for piracy reasons up to 2 years ago
Source: Federcocomin, Auditel, Sky Italia, GkF, Fastweb, Booz Allen analysis
3
DTT is enjoying success in the Italian consumer electronics context
Drivers for DTT success
DTT STB sales
(97% are interactive)
1 Content offering (free and pay)
- ‘000, at end of month -
2 Availability of advanced receivers at low prices
3.900
3 Accessibility
– Horizontal and interoperable STBs (MHP,
multiple CAS)
– Plug and Play
– “Affordable” free and pay offering
2.300
1.400
46% Set top Boxes sold
without subsidies
340
0
January July 2004 January
2004
2005
June
2005
January
2006
Sans
subv.
46%
Avec
subv.
54%
Source: GfK;
4
Today in Italy, DTT STB’s cost below 100€, and are more advanced than STB’s in
other European countries
Price evolution of DTT STB’s in Italy
(end price including VAT)
€ 390
Comparison of STB’s prices in Europa
(end price including VAT of cheapest
model available)
€ 250
€ 179
Jan
2004
Mar
2004
Sept
2004
€ 149
Dec
2004
€ 119
Apr
2005
€ 100
€ 85
UK
Germany
France
MHP
MHEG
--
--
CAS
--
CAS
--
--
Modem
(V.90)
Modem
--
--
--
€ 90
€ 90
Today
Italy
Spain
MHP
Source: GfK Marketing Services Italia; Market survey, Booz Allen analysis
€ 75
€ 58
5
DTT viewers have free access to nearly 30 TV channels and to two different pay-perview services…
Current DTT offering
Main
Main analogue
analogue channels
channels in
in simulcast
simulcast
i
i
i
i
i
i
i
Sport
Sport and
and sport
sport news
news
SPORT
SOLOCALCIO
i
News:
News: financial,
financial, international,…
international,…
Kids
Kids
i
i
Cinema
Cinema news
news
Public
Public service
service channels
channels
Shopping
Shopping
Music
Music channels
channels
i
Religion
Religion
i
Pay
Pay per
per View
View services
services
i
i
i
i
i with
with interactivity
interactivity
i
Channels in simulcast
New DTT channels
New pay DTT services
Note: “Rete A” multiplex (broadcasting “All Music”, “The Club”, “Camera”, “Senato”) is not included because its current coverage is below 50%
Sources: DGTVi; Sat-Net; Booz Allen Hamilton analysis
6
… and a multitude of more than 100 interactive services and
additional free to air contents
DTT Offer
Information on programs
Live Interaction
Double Audio
Additional contents
Games
Programming Guide
Italian
DTT
Information services
Service (commerce)
Interactive advertising
Super Teletext
Financial info
7
Case Study: Boing et Rai Utile
New
New Kids
Kids Channel
Channel
−−
––
––
––
––
Boing
Boing isis addressed
addressed to
to 22 to
to 14
14 years
years old
old children
children
Not
Not only
only cartoons
cartoons but
but even
even series,
series, documentaries
documentaries and
and
movies
movies
Boing
Boing isis aa Joint
Joint Venture
Venture between
between Mediaset
Mediaset and
and Turner
Turner
Broadcasting
Broadcasting System
System
New
New educational
educational interactive
interactive games
games
55 main
main issues
issues in
in cooperation
cooperation with
with Italian
Italian Pubic
Pubic
Administration
Administration
Consumers
Consumers
Environment
Environment
Job
Job
Family
Family
Culture
Culture
News
News Channel
Channel on
on DTT
DTT
Multiple
Multiple choice
choice of
of interactive
interactive applications
applications
Source: Mediaset, Rai, Analyse BAH
8
In addition, first trial T-Government services are present on DTT
Public Administration
Healthcare
Local public service portals
Sources: Rai; La7; Mediaset
9
T-Government: Service Structure
Example
a
str
u
l
l
I
t if
TV Access through
Remote control
Friendly User Service
Public
Administration
Job
Education
Tourism
Health Care
Environment
10
Simple PAY TV model, ( 3 – 5 € per event instead of the 50 €
per month of a satellite subscriber)
1
4
“Serie
“Serie A”
A” Teams
Teams on
on DTT
DTT
Purchase of a pre-paid
card at the shop
Regular
Replacement
(Mediaset)
PPV Prépaid
on DTT
5€
per
match
2 Access to the
premium
content
(through remote
or call center)
Further
Further Premium
Premium contents
contents
3
Card Recharge (La7)
Call
Center /
Web /
Voucher
Source:, Mediaset, Analyse BAH
2-3 €
per
«event»
Blockbuster Movies, Film,
Concerts, Reality, …
11
DTT is an extension of today’s analogue/free television, capable of
competing against other digital TV platforms
Offering and costs for the end user
TV platform positioning (Italy)
PAY
SUBSCRIPTION
Cable
+
TV over DSL
Satellite
Ca. 50 - 100
> 100
PAY
A LA CARTE
FREE
MULTICHANNEL
Analogue
terrestrial
Ca. 10
Digital
Terrestrial
(DTT)
Ca. 25 - 50
Number of available TV channels
Source: Booz Allen Hamilton analysis
12
Main Issues in the short future
Regional Switch-Off
DVB-H first trials
13
Regional Switch off: Sardinia and Valle d’Aosta DTT ready on July 2006
Sardinia
Switch-Off Schedule
Gradual
Gradual Switch
Switch off
off ::
Final
Final Switch
Switch off:
off:
DTT
DTT Broadcasting
Broadcasting in
in
the
the major
major towns,
towns,
(red
(red on
on the
the map)
map)
DTT
DTT Broadcasting
Broadcasting all
all
over
over the
the Region
Region
31 July ‘06
31 Dec. ‘06
430 K households
650 K households
(white
(white on
on the
the map)
map)
Valle d’Aosta
14
STB’ s sales increased in the two Regions
DTT
DTT Households
Households
(31
august
(31 august 2005)
2005)
DTT
DTT Households
Households
(3
(3 march
march 2006)
2006)
DTT Households Pénétration
57,5% Sardinia
Sardinia
Sardinia
40,000
40,000
333,154
333,154
Valle
Valle
d’Aosta
d’Aosta
1,500
1,500
27,601
27,601
Total
Total
41,500
41,500
360,755
360,755
51,3% Valle d’Aosta
15
Preparing to the Switch-Off in Sardinia …
16
Broadcaster et Telco are testing the Mobile TV on DVB – H
Return channel
possible through 3G
Free to Air Channel
Thematique Channel
Premium Contents
Services
…
17
DTT can succeed if all the Operators are involved in the process
Government
Broadcasters
Industry
18
Challenges for the successful transition to digital TV
1. Role Public Service
2. How to improve the attractiveness of the free channels
3. Role of new services (DVB-H, HDTV)
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Danke Well!
Egidio Viggiani
Secrétaire général
DGTVi
[email protected]
[email protected]
Mobile
+39 335 450370
Téléphone +39 06 37717205
Téléfax
+39 06 37717233
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