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Hosted IPTV Service
our partner approach to IPTV subscriber growth
Alexander VaglarovVestitel BG Jsc
Agenda
IPTV Hosting – service definition
Bulgaria – key market data
Our Strategic position
IPTV Hosting benefits
Our current offer
Next steps
Sources:
•TV studios
•Film Studios
•Content Aggregators
Vestitel:
•Content Management
•Encoding
•Encryption
•Provisioning
•Quality Monitoring
•Billing
•Skins
•Marketing
•L2 Support
Partner/ISP:
•Access network (FTTC/B/H)
•Customers
•Service Bundling (2 Play/3Play)
•Promotions
•Field support
Customer
Enjoying Services
TV Hosting – Service Eco-System
Bulgaria-Macro-Economic Picture
IndicatorChange (in %) Vs Previous Year
2005 2006 2007 2008
GDP 6,2 6,3 6,2 6,25
Industrial Production
6,7 5,9 9,2 5,2
Unemployment 10,1 9 6,9 5
Number of Households (HH) 2 500 000
Population (end of 2007) 7 640 238
Bulgaria - TV Market 2008
TV penetration > 90%, average 1,6 TV/HH
CATV and DTH penetration– 70 % of HH(1,75 Mil.)
CATV consolidated– 42% of HH,>38% by 2 players
CATV operators offer 3 Play, started in 2006
CATV ARPU – about 12 EUR/month incl. VAT
DTH penetration - 28% of HH, ARPU 9 EUR/month
Digitalization of TV – regulatory push till 2012
Web TV – started in 2007, niche product
IPTV – first steps, but the future
30% of HH connected to BB Internet (700K)
Average growth per year about 6%
Illegal content decreased dramatically
Bulgaria – BB Internet Market 2008
Our Strategic position
Vestitel installed high quality IPTV Eco-system
Vestitel collected 2 years of IPTV experience
Vestitel’s own FTTB/H network development was too slow – building permissions
Next 2-3 years will be critical for IPTV positioning in BG - 2 main players can survive
IPTV needs scale, to be profitable
Partners are needed to scale
Our Strategic position3 strategic partner choices
Cable TV
BTC(incumbent)
LAN ISPsFTTC/B/H
•biggest stake in BB Internet (in total)
•FTTC/B/H – best for IPTV
•fragmented >400
•good customer contact
•need 2 and 3Play to grow and protect positions
! Investments, no TV experience, QoS, multicast
•biggest customer base in one hand
•own IPTV project cancelled
•financially strong
! xDSL limitations, slow, decision making process, risk of starting own service
Competitors
Our market approach – LAN ISPs
Local focus – partner ISP with good reputation
No set-up fee, pay as you grow
ISP ability to create own bundles – 2 & 3Play
Motivating GM for ISP (TP= CP/2)
50-50 margin split of all VAS (e.g. VoD)
Free STBs for the service testing & start (100)
Free training for sales and technicians
Marketing support through (co branding)
Customers:
High Picture Quality (fully digital technology)
Interactive service, content navigation
ISPs:
Short time to market, protect market position
Easy start, low risk for ISP
Economies of scale for STB and content
Content providers: Controlled content distribution
Vestitel: one of the 2 main IPTV players in BG
IPTV Hosting win - win solution
IPTV service started in just 7 steps
Our current offering
74 TV channels + 20 radio stations
ISP individual vision – „Logo” & “Skin”
Centralized Provisioning and Billing
24/7 Layer 2 service support
Price for Sofia – 5.87 EUR/Subscriber/month
Marketing Support through
50-50 split of VoD and Pay TV margins
2 STB models (Motorola, 2-nd STB integr. in progress)
Features – now and next steps
Streaming TV - existing (74 ch)
Video on Demand - existing (Promo)
EPG & Reminders - existing
Individual TV profiles - existing
Information portal - existing
HDTV – planned Q2/2009
Time-shifted TV – planned Q3/2009
People metrics – planned E/2009
Targeted Advertising – planned 2010
NPVR – planned 2010
Thank you for the attention!
Alexander Vaglarov+359 89 334 [email protected] Illustration by Barton Stabler
