International Telecommunication Union
ITU-T
Key Success Factors
…….Beyond IPTV
Paul Berriman
PCCW
12th October 2006
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
ITU-T
now TV – Introduction
Performance to date
The Platform and capabilities
Content and Marketing
Strategy and Integrated Services
The Future: Interactivity and Home Networking
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
ITU-T
now TV – Introduction
Performance to date
The Platform and capabilities
Content and Marketing
Strategy and Integrated Services
The Future: Interactivity and Home Networking
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
ITU-T
Hong Kong
a Leader in Technology and Competition
7M population, multi-lingual, mainly Chinese speaking
4 pay TV operators, 5 fixed operators, 5 mobile operators
2 free to air broadcasters with 4 channels (2 Eng + 2 Chi)
3.8 million telephone lines
Mobile penetration over 100% with 3G launched in 2003
World’s 2nd most developed broadband market with more
than 1.6m accounts – about 60% household penetration
Over 50% pay-TV penetration
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
Introduction
ITU-T
¾
650k+ installed customer base in 3 years
¾
25% of Households
¾
Over 110 TV and audio channels
¾
Innovative pro-active marketing
¾
High quality platform
¾
Growing array of new Interactive services
¾
Significant benefits to broadband business
¾
Broadband Churn halved to <1%
¾
CASBAA Chairman’s Award 2004
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
Sustained Momentum
ITU-T
Reached
Reached
Strong Demand for
654,000
654,000
at
atend
endof
ofAugust
August
Residential
Installed
Pay channel customers
Commercial
Installed pay
channel services
y
o--y
yy--o 608
%
88%
26
3
3
++
549
22
(’000)
441
444
17
Pay Channel Customers & ARPU
Pay channel
customers
Mini Packs
as % of total
launched
installed
100%
105
26
22
70
10
53%
57
269
271
418
10
2004
30
0
2003
29
2003
20%
H2
106
H2
60
0%
182
H1
61%
H1
H2
H1 Global Technical Workshop
ITU-T
IPTV
Seoul, Korea, 12-13 October 2006
2005
2006
120
71% 73%90
369
254
H2
110
114 118
39%
17
147
(HK$/ month)
391
361
192
Steadily rising
ARPU as new
content introduced
H1
H2
2004
H1
H2
2005
H1
2006
Strategy is Working
ITU-T
Broadband Lines Continue
to Grow
--yy
yy--oo
%
6%
++116
998
(’000)
Wholesale
Business
Consumer
703
953
753
796
857
68%
53%
59%
48%
28%
94
88
80
629
H2’03
74
63
Growing penetration rate of
among
consumer NETVIGATOR
H1’04
H2’04
H1’05
68
58
798
840
Maintained low churn rate of consumer
NETVIGATOR since
launch
715
660
558
Dropped by half
517
460
H1
H2
2003
H1
H2
2004
H1
H2
2005
H1
2006
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
Before launch
Jun-05
ITU-T
Expanding the Pay TV Market
Expanding the Pay TV Market by More than 60%
Bringing Quality Entertainment to More Consumers
Expanding Pay TV Market
HK Cable TV
13 Years
Customers 740K
@20% Piracy
3 Years
Customers > 650K
Zero Piracy
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
ITU-T
now TV – Introduction
Performance to date
The Platform and capabilities
Content and Marketing
Strategy and Integrated Services
The Future: Interactivity and Home Networking
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
PLATFORM
ITU-T
now TV – Platform
Production
Tape
Subscriber Management
System
Billing System
Rating Database
Decryption
Satellite, or
Fibre Optic
feed
Encryption
Local
exchanges
Encode
MPEG 2
Custom Network Based
Conditional Access Unit
TV Headend
in DSLAM
Content feed
6 Mbit/s ADSL to over
93% of Households over
existing copper
DSLAM
CAU
Modem ->
TV Set
Top Box
Conditional
Access Unit in
DSLAM in
Local Exchange
Customer’s
TV
Low Cost Digital Decoder
Based on DVD
Chipset
Hong Kong Head-End
Hong
Kong Local
Hong Kong
Web Browser
& Web
Telecommunications
Exchanges
Customer’s Home
End to End Dynamic Key encryption
Server Based EPG
Linked
by Fiber Optic Cables
With/Without
DVD
with On-line Subscription
Auto Software Upgrades
Management &
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
Billing Enquiry
Platform
ITU-T
¾
High quality picture with NICAM digital sound
¾
Ability to offer multiple language channels
¾
¾
Viewer reporting – time of day viewing
Secure platform – network based CAU
9 Digitial encryption
9 No geographic overspill
9 Firewalled from internet
ABC Asia Pacific - Reach Rate - Sep-Nov 2005
0.120%
Mon-Fri
Sat-Sun
0.100%
Overall
0.080%
0.060%
0.040%
0.020%
0.000%
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
00
01
02
03
9 Zero Piracy – Revenue Assurance
¾
Installation easy and targets feasible
¾
Growing interactivity and integrated services
¾
>990,000 Broadband Customers to Upsell
¾
Scaleable Network with Large Channel Capacity and “Add-Ons”
¾
HDTV in commercial service by end 2006
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
04
05
ITU-T
now TV – Introduction
Performance to date
The Platform and capabilities
Content and Marketing
Strategy and Integrated Services
The Future: Interactivity and Home Networking
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
ITU-T
Flexible Pricing Options
Monthly
Service
(approx.US$)
12 Month
Contract
(approx.US$)
Broadband plus Internet access
30
20
Broadband plus Internet plus pay TV
NA
20*
Broadband plus pay TV only
NA
10**
Pay TV content (per channel)
1.5 – 10 each
1 – 8 each
NA
14
Minipack (choice of 8 pay channels
with selected genre mix)
- Larger packs available
•Installation and STB charges waived plus 17 free channels
** Customer must have minimum pay channels
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
Content
ITU-T
Pay TV is about watching great TV content…
9 All genres: Movies & drama, Travel & documentary, News & Information, Kids,
Entertainment & Music, Sports, Foreign language, TVB Pay Vision, Adult
9 Local / localisation
9 Mass & niche
9 Some great exclusiveness
電影預告
頻道
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
ITU-T
The Movie House
y Long term exclusive arrangements – 2011
& 2014 with STAR and HBO
y Continue to strengthen local content
including exclusive Mei Ah Movies & STAR
Chinese Movies
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
Marketing
ITU-T
¾
Recognition that content providers have fantastic brands
¾
Comprehensive channel proposition with high quality picture
¾
“Arm chair” proposition… buy on screen, check bills on screen
¾
Flexible “a-la-carte” channel / “a-la-carte” pack pricing structure
¾
Easy to use EPG, parental control, bill viewing, previews, barker…
¾
Mass / CRM based marketing - internal: shops, call-centre, EDMs, promos / barker
channel and external: road shows, TV, radio, print, bill-boards, busses, door-to-door…
now TV
Marketing ….. Maintaining Momentum!
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
ITU-T
Marketing Strategic Roadmap
Enrich
Enrich
content
content
From 23 to 90+ channels in just over 24 months
Unique
Unique
flexible
flexible
pricing
pricing
A la carte proposition – low entry point
$388 Super
Value Pack
Drive
Drive
ARPU
ARPU
Mini-packs drive up ARPU
Mass
Mass
market
market
packages
packages
More
More
exclusive
exclusive
deals
deals
Chinese Content Platform
InterInteractivity
activity
Ticketing,
Sept-03
Mar-04
now Select
Nov-04
Oct-05 Jan-06
Marketing …. Maintaining Momentum !
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
ITU-T
now TV – Introduction
Performance to date
The Platform and capabilities
Content and Marketing
Strategy and Integrated Services
The Future: Interactivity and Home Networking
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
PCCW Business Transformation
ITU-T
Extending Value Chain
Content
Application
Transactions
Access
Conduit (POTS, Basic
Broadband)
Own content (e.g phone calls)
Separate networks and billing
Unlocking Capabilities
Secure third party content
Managed high bandwidth
Network and Billing
Trusted partner
Increased stickiness
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
Customers Access Integrated Services through
Quadruple Play on an All IP Core Network
ITU-T
Telephone
TV
Mobile
PC
Access Layer
Content
Applications
&
Content Applications
& Transactional
Transactional
Services
Services
IP Core Network
Wireline
Wired
Broadband
Wireless
Home/Office
Broadband
Wireless
Mobile
Cellular
2G/3G
Access to valuable content and transaction revenues will be via multiple
access technologies for a number of customer situations, devices and
experiences, fixed, wireless and mobile
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
ITU-T
PCCW Group
Pay-TV
Fixed Line
Broadband Mobile
&
ISP
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
Quadruple Play
ITU-T
Complete Platform for Integrated Services
Broadband
Fixed-line
y Continued line gain
y 998k lines, up 16% y-o-y
y Market share returned to 68%
y
music library launched
Mobile
Pay TV
y 654k subscribers, up 38% y-o-y
y Migrating PCCW 3G trial users
y HDTV in trial
y Launched Mobile TV
ITU-T IPTV Global Technical Workshop
Korea,
12-13 October
2006
Plus: TV Content +Seoul,
ISP
Portal
Content
+ Mobile Content
ITU-T
Content on Multiple Platforms:
UEFA Champions League Soccer
now.com.hk
y Broadcasting 77 games live
y Broadcasting all 125 games live
y Video clips of all 125 games
y Simultaneous broadcast up to
y
y Content includes preview,
4 games
y All 125 games on demand
/
jointly developed
UEFA Champions League on-line
Challenge Games
match highlights, etc. from
on
On All Platforms Began September 13
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
ITU-T
• Exclusive
on
content made available to
• Utilizing CMB technology, content can be
broadcast more efficiently and to a large
of users
customers
group
• Initial programming will include local &
international news, finance & sports:
• Other entertainment and infotainment
available soon:
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
will be
ITU-T
now TV – Introduction
Performance to date
The Platform and capabilities
Content and Marketing
Strategy and Integrated Services
The Future: Interactivity and Home Networking
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
Evolution from Basic
Broadband to HD IPTV
ITU-T
2006 STB with
H.264 for HD @ 8 Mbit/s
plus MPEG2 for SD
HDTV
Advanced
Interactivity
MPEG4
Home networking
Multiple TVs
Media server
Network based personal video recorder
Replay/ timeshift
On-demand
Interactive advertising
Transactional services (e.g. Movie Trailers/Cinema Ticketing)
Electronic program guide Casual games
Online subscription
“Side” Channels including ESPN Plus and HBO Uncut
Online billing
MOBILE TV
Traffic & weather channels
95 channels (ESPN, ATV, drama)
Mini-packages
Basic
Interactivity
IP TV
Broadband
Internet
23 channels
a la carte model
MPEG2
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
Today
Time
Broadband Access
Development
Percentage of Territorial Reach (%)
ITU-T
6Mbps
6Mbps
introduced
introduced
93%
85%
Via
ViaFTTB
FTTB++
ADSL2+
ADSL2+and
and
VDSL
VDSL
18
18--25Mbps
25Mbps
8Mbps
8Mbps
50%
Early
Earlyramp
rampup
up
of
fiber
to
the
of fiber to the
building/
building/kerb
kerb
ADSL
ADSLto
to8Mbps
8Mbps
To
50%
from
To 50% from
exchange
exchange
Today
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
Dedicated
Dedicated
Managed
Managed
Bandwidth
Bandwidthwith
with
Q.o.S.
Q.o.S.
NOT
NOTSHARED
SHARED
!!
Time
ITU-T
New Interactive Services
now HD
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
Movie Trailer Channel
On-Line Ticket Booking via IPTV
ITU-T
y Hong Kong’s first-ever instant box office on TV through partnership with UA Cinemas and
Cityline
y Customers can preview theatrical trailers then pick the seats and purchase tickets from
UA Cinemas by clicking on the buttons on their remote control
y More customers using
Movie Ticketing than Cityline on Internet
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
New Interactive Services
ITU-T
y
the place to shop
y Interactive shopping mall
y DVDs/Books, Kids/Sports,
Leisure, PCCW Products,
Bargain Corner & more
y Stock Market Express – Real
Time Quotes
y Stock quotes, FX spot rates and
gold prices
y Transactional capabilities to
come
y A selection of casual games for
the whole family
y Currently 8 games on free trial
for high ARPU customers
y Major enhancement by
November ’06
Mall out of the box!!
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006
Experience Gained:
Some Key Success Factors
ITU-T
• Start with large Broadband Customer Base enabled by Bandwidth
everywhere and low cost STB decoder
•
Award winning customer relationship management with proactive
outbound call centre telesales. Cross Selling-Upselling. Not Bundling
•
A La Carte as competitive entry strategy, migrating to “mini packs”
retaining choice
•
Wide choice of content, some “killers”, some exclusives
•
Constant progress monitoring and marketing initiatives which evolve to
keep up the momentum.
•
Protect Content Providers Rights – Zero Piracy, Revenue Assurance
–
Become Trusted Partner – for customer and content provider
•
Quality Picture, better than Cable and Easy to use Customer Interface
with phased introduction of interactive services
•
Strong “in-house” capabilities
for network/systems
development and
ITU-T IPTV Global
Technical Workshop
Seoul, Korea, 12-13 October 2006
Installation
International Telecommunication Union
ITU-T
PAUL BERRIMAN
Head of Strategic Market Development
PCCW Limted
40F PCCW Tower
Taikoo Place
Quarry Bay
HONG KONG
Tel +852 90241312
Email: paul.berriman@pccw.com
ITU-T IPTV Global Technical Workshop
Seoul, Korea, 12-13 October 2006