2. Turning Digital – A wrap-up TV experience, 10 September 2013
Foreword
Turning Digital, now at the 11° edition, is a global analysis on television in 17 countries in Western
Europe. It provides data and insights of the Big 5 markets (France, Germany, Italy, Spain and United
Kingdom).
The first part reports the state of the art of TV in Europe at the end of 2012, and its current perspectives.
More in details: resources (licence fee, advertising, pay TV), audience shares, multichannel, digitization.
The second part focuses on the trends in progress. This year focus is on content ubiquity and on
broadcasters’ strategies in the new market of convergence, with several case studies.
More than 100 pages and 70 among tables and charts.
Data sources: proprietary data, public data, rating agencies, research institutions and field interviews.
1
7. Turning Digital – A wrap-up TV experience, 10 September 2013
Audience fragmentation
In the digital age, TV remains must-see. The average viewer watches live TV longer than ever before, but it
seems rarer and rarer that many of them are watching the same thing at the same time. The
proliferation of channels has led to heavy fragmentation of audiences across niche markets
6
230
222
254
246
239
35
43
40
33
62
0 50 100 150 200 250 300 350
France
Germany
Italy
Spain
UK
Average video consumption in the Big5, 2012
(minutes per viewer per day)
TV consumption Online video consumption
301
279
294
265
265
Viewers are increasingly able to
stream video content on their TV sets
with little or no commercial
interruption, via video-game
consoles (Xbox, Wii), streaming
media devices (Roku, Boxee, Apple
TV), or increasingly, internet
connectivity built directly into TV-
sets. Advertisers need to accept that
linear TV is no longer the sole
platform viewers use when they lean
back on the couch to watch. Viewers
now have more choice than ever in
the types of channels they can watch,
making the advertiser’s job of
efficiently reaching them harder than
ever
Source: data processed by ITMedia Consulting
14. Turning Digital – A wrap-up TV experience, 10 September 2013
Beyond HD
HDTV penetration has taken off as equipment
prices have fallen to affordable levels and the
number of channels on offer has become
attractive to a mass audience.
Some operators now offer HD channels free to
subscribers within other packages – though
subs often still have to pay for a relatively more
expensive HD set-top box
French CSA licensed 6 new HD channels on
DTT, while the BBC announced that it will
launch five new free HD channels by early 2014
The next stage will be the Ultra HD, which
includes the 4K and the 8K standards. These
allow a resolution which is 4 and 8 times higher
than the “standard” HD.
Netflix announced U-HD plans, Sky carried out
trials and EBU supports the technology
13
Source: company data processed by ITMedia Consulting
• Active 3D
• £35 000
• Panel:
Samsung
Display
• Glasses-free
3D
• £4 000
• Panel AUO
• Passive 3D
• £22 000
• Panel: LG Display
• Passive 3D
• £25 000
• Panel: LG
Display
4K TV sets currently available in the UK
16. Turning Digital – A wrap-up TV experience, 10 September 2013
The race to the TV market
Adoption of OTT is being driven, and
accelerated, by increasing broadband
penetration coupled with the plethora
of Internet Protocol enabled devices
available to consumers today: laptops,
smartphones, tablets…
OTT is no longer a niche offering in the
hands of early adopters. Viewing
figures and content volumes are
growing. Aggregators invest in content
and in new aggressive business models
Deep convergence between television
and Internet has finally arrived and
media companies can no longer ignore
it. Traditional business models are
being questioned by potentially
superior business models that are
based on a deeper and more direct
relationship with the end consumer
15
Source: elaborazioni ITMedia Consulting
2005 2012
1. Start-Up
• Technological innovation
• User-generated content
• Limited number of aggregators
2. Monetized Consumer
Offerings
• Non-premium professional
content
• Bolder experimentation with
rights
• Traditional broadcasters
launch products/services
3. Professionalization &
Expansion
• Premium content rights
acquisition
• Original content creation
• Investing in multiplatform
• Market-specific offerings
across geographies
The evolution of Internet TV services
17. Turning Digital – A wrap-up TV experience, 10 September 2013
But broadcasters fight back
16
Source: data processed by ITMedia Consulting
Offering Partnership
Canal Plus France
CanalPlay Infinity (new monthly SVOD
package)
Canal+ Multi-Ecran—access to all 5 HD
channels via TV, Xbox, PC/Mac, tablet, or
smartphone with a single membership
Distribution deals with Xbox and other platforms
across connected devices
France Télécom/Orange
“Film Pulse” online tool that collates opinion and
sentiment on films from across the Web and
social networks
Orange and Microsoft partner to offer Orange
TV on the Xbox 360, and launch a voice and
motion-activated TV control to Orange TV
customers
Mediaset
Premium Play on-demand service provides
access to about 2,000 titles via TV, PC and
Xbox
on-demand programs to Xbox LIVE Gold
service customers of the XboX360 console.
Launched on iPad on April 2012
TF1
TF1 launches iPad and iPhone app, with free
access to live content & catch-up programs
Partnership with Twitter, launching a Twitter-
follow button for all content available via video-
sharing platform and website
RTÉ Ireland
Worldwide launch of iOS app allowing iPad,
iPhone Player and and iPod touch users to
stream RTÉ programming for up to 21 days
after transmission, as well as watch selected
live shows from RTÉ One, RTÉ Two and RTÉ
NewsNow
Player and NewsNow offerings branching back
towards TV. Currently accessible through PS3,
plans are in place to launch on other key
gaming and connected TV platforms,
Pay TV—and to extend onto the free to air Irish
DTT platform Saorview
18. Turning Digital – A wrap-up TV experience, 10 September 2013
Digital entertainment in a multiscreen world
Content is king, however, the context is getting
more and more important: this brings into focus the
importance of other assets and capabilities, above
all, expertise across screens and devices
Today TV is moving away from appointment-based
viewing and revolving more around watching
content on the best available device possible
As more mobile screens penetrate the market, and
more content becomes available online, the way
people watch TV continues to evolve into a mobile,
multi-screen experience
live video has an immediacy and urgency that leads
to longer viewing times across all devices
Multiscreen represents the first step in fending off
the competitive threat from OTT players : by making
pay-TV less TV-centric—i.e., allowing access on
tablets, laptops and smartphones, and enabling TV
to be moved around the house and on the road—
multiscreen becomes an attractive alternative to
OTT
17
41,22
8,12
13,1
45,8
2,26 2,23 2,45
4,76
0
10
20
30
40
50
Desktop Mobile Tablet Connected
TV/Game
Consolesminutes
Live TV vs On Demand video, time per play per device
Live TV VOD
Source: data processed by ITMedia Consulting
19. Turning Digital – A wrap-up TV experience, 10 September 2013
Time to take the challenge
The movie industry has already embraced
internet as a distribution platform, and a
similar phenomenon awaits the broadcast
TV industry.
Catch up TV is a success story but there is
also evidence of appetite for live content, as
shown by the number of users watching
live streamings
Broadcasting TV online is a great chance to
enhance the relation with the consumers
and it can leverage on the power of big data
=> real-time data with real-time implications
for improving the consumer experience
18
68%
34%
38%
43%
62%
67%
0%
10%
20%
30%
40%
50%
60%
70%
80%
France Germany Italy Spain UK Western
Europe
% of internet users watching TV online in the Big 5, 2012
Source: data processed by ITMedia Consulting
20. ITMedia Consulting
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phone: +39 06 42027112
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Turning Digital – A wrap-up TV experience. 10 September 2013 19
