2. Opportunity Markets for Television
SIZE MOROCCO
TUNISIA POTENTIAL
Over 100 Locally Produced
53 Countries ALGERIA
LIBYA
EGYPT Channels
WESTERN
1 Billion People
SAHARA
MAURITANIA
100m TVs across
60m households
CAPE VERDE
MALI
SENEGAL NIGER ERITREA
CHAD
SUDAN
BURKINA
DJIBOUTI
FASO
GUINEA GUINEA BENIN
BISSAU
GHANA NIGERIA
Region 1a: South Africa SIERRA IVORY
TOGO ETHIOPIA
LEONE COAST CENTRAL
AFRICAN REPUBLIC
Region 1b: Southern Africa LIBERIA
CAMEROON
EVEN FTA IS LIMITED
SOMALIA
EQUATORIAL
GUINEA
Region 2: Portuguese Africa SÃO TOMÉ & PRÍNCIPE GABON
Rep. of
CONGO
UGANDA
KENYA
Democratic RWANDA
Republic
Region 3: East Africa of CONGO BURUNDI
TANZANIA
Despite an
explosion of FTA
SEYCHELLES
Region 4: West Africa
Region 5: French West Africa ANGOLA MALAWI
players, majority of ad spend
COMOROS
BUT... LIMITED SUCCESS
ZAMBIA
Region 6: French Central Africa in South Africa. Only 1 player
has syndicated across Africa
MADAGASCAR
ZIMBABWE
MOZAMBIQUE
Region 7: French North Africa NAMIBIA
Only 1 Pay TV Platform has BOTSWANA
MAURITIUS
Region 8: Arab North Africa
managed to exceed 1m
REUNION
SWAZILAND
Region 9: Horn of Africa
Subscribers and rest only
LESOTHO
SOUTH AFRICA
Region
have less than 400k each
10: Indian Ocean Islands
3. Challenges in the African Television
Market
Significant rise in the cost of Premium content
Access to
particularly sports and these content rights
Content controlled by established players
Cost of production is high with Typical
Cost of Local
production costs ranging from $7,000-
Production $15,000 per hour
Foreign Most market have restrictions on foreign
ownership
Ownership Keep control strategic assets
Limited Limited Funding
Capital High set-up costs
Financial Few consumer have bank accounts
Availability of funding
System
4. Advances in the Africa Television
Market
Emerging Growing market in local production
Nollywood - world’s 2nd largest production
Content market
Regulatory New licenses for both private FTA and Pay-TV
Regulation of content rights
Framework
Growth of Explosion licensed FTA broadcasters
Growth spurred by liberalisation across the
Free-To-Air region
Mobile Concept of prepaid is African innovation
Money Africa is pioneering mobile money transfer
Affordable Growth low cost bouquets on incumbent
platforms
Pricing New entrants in the Sub-$20 range
5. Sub-Saharan Pay TV Players
Nigeria FTA Players
Ghana FTA - State FTA: 124 Channels
Players TUNISIA
MOROCCO
- Local Terrestrial : 8 Players
- 6 FTA Players
ALGERIA - Cable Operation: 4 Players
LIBYA
EGYPT
WESTERN
SAHARA
East Africa FTA
CAPE VERDE MAURITANIA Players
SENEGAL
MALI
NIGER
CHAD
ERITREA - Kenya: 7 Players
SUDAN
- Uganda: 24 Players
- Tanzania: 5 Players
BURKINA
DJIBOUTI
GUINEA
FASO DJIBOUTI
GUINEA GUINEA BENIN
BISSAU
BISSAU GHANA NIGERIA
SenegalSIERRA
FTA
LEONE
SIERRA
LEONE
IVORY
COAST
TOGO
CENTRAL
ETHIOPIA
Players
AFRICAN REPUBLIC
CAMEROON
LIBERIA
LIBERIA SOMALIA
SOMALIA
- 5 FTA Players EQUATORIAL
GUINEA
Rep. of
UGANDA
SÃO TOMÉ & PRÍNCIPE CONGO KENYA
GABON
Democratic RWANDA
Republic
of CONGO BURUNDI
TANZANIA SEYCHELLES
COMOROS
ANGOLA MALAWI
ZAMBIA
MADAGASCAR
ZIMBABWE
NAMIBIA MOZAMBIQUE
BOTSWANA
MAURITIUS
REUNION
SWAZILAND
LESOTHO
SOUTH AFRICA
6. Subsidies into Africa
Government will need to formulate a
Strategy to make DTT STBs affordable
in comparison to DTH Pay-TV STBs
Pre Top TV: 399 (box only) Launch in Nigeria: Nr9,000
Launch: R499 Top TV 2010: R649
Current: R299 Current South Africa: 599
Pre Star: Nr20,000
Current Nigeria: Nr10,000
In 2009, the target price for DTT STB was around R700, what will the target
price be for DVB-T2 box now?
7. Its not just the box pricing…
TV Channels
Pay TV Providers will position their
entry point offerings to compete head
Radio Channels
to head with FTA DTT services with
=
aim of later up-selling “DTT”
acquisitions onto higher packages
8. Lack of Audience Data = Lack of Ad Spend
Explosion of Free To
Air players over the
Advertising Spend Excl South Africa (US$m)
past 10 years in Africa 250
Outside of South Africa 200
there are few industry 150
wide Advertising 100
Measurement bodies
50
0
Most of the players are
Kenya
Zimbabwe
Nigeria
Cameroon
Cote d’Ivoire
Uganda
Angola
DRC
Senegal
Tanzania
Ghana
Botswana
Namibia
small terrestrial
operations with limited Advertising Spend South Africa vs. Rest of sub-Sahara
(US$m)
coverage 3,424
BUT CA gives each STB
an unique address
User registers for the 968
service and married to
STB address South Africa Rest of MUSA
8
9. Free-To-Air (FTA) vs. Free-To-View
(FTV) FTV
FTA
§
@ @
*
@ §
*
@ §
* &*
§
&
& &
Encrypted
@ @
*
@ §
*
Open
@ §
* &
§
* &
§
& &
Signal distributed encrypted
Can only be accessed by a STB that
Signal distributed completely open has been entitled to receive the signal
Any compatible devise can receive the i.e. registered users only
signal Although there is CA, the service is
BUT - no way to tell how many devices still provided free of charge/
are watching or even what they are subscription
watching Visibility on the exact number of
households addressed and even what
9
they are watching
10. Not only who is watching but what and
when are they watching...
10
11. EPG Advertising
Based on the EPG Framework infrastructure of EPG
Updates, the EPG enables operators to create new
revenue streams for advertising using
– EPG real estate
– Program banner
– As overlay on top of video
Ads can be targeted to
– Individuals or groups (based on card id, stb id)
– Channels (services) or 11
Events
12. Sharing to Generate Economies of
Scale
Platform Platform Platform Platform
A B C D
Content Content Content Content
Headcount Headcount Headcount Headcount
Ops Team Call Centre Ops Team Call Centre Ops Team Call Centre Ops Team Call Centre
Headend Headend Headend Headend
MUX CAS SMS MUX CAS SMS MUX CAS SMS MUX CAS SMS
Distribution Distribution Distribution Distribution
CPE CPE CPE CPE
STB EPG STB EPG STB EPG STB EPG
12
13. Sharing to Generate Economies of
Scale
Platform Platform Platform Platform
A B C D
Content Content Content Content
+ Each Platform compliments its own content
with a bouquet of common content
Headcount Headcount Headcount Headcount
Ops Team Call Centre Ops Team Call Centre
Single Operations Centre including full operations team
Ops Team Call Centre Ops Team Call Centre
MUX
& Uplink/Teleport
Common CAS and MUX
Headend Headend Headend Headend
Hosted Call Centre
MUX CAS SMS
Hosted SMSMUX CAS SMS MUX CAS SMS MUX CAS SMS
Distribution Distribution Distribution Distribution
Shared Shared Transmission Network DTT
Distribution Common Space Segment on a shared transponder(s)
CPE CPE
Common STB Platform running CPE Multiple UIs/EPGsCPE
Common Smart Card Platform but individually branded cards
STB Each Platform still retains its own UI/EPG
EPG STB EPG STB EPG STB EPG
13
14. The Power of a brand
Platform Branding EPG Branding
Branded OTT Clients
Device Branding
14
15. In Summary
Market has New Players, New Standards
evolved New Platforms
Consumer Many players chasing the same consumers
Choice Offering needs to be compelling
Market to be DTT cannot be based on a build it and they
will come attitude
developed
Content needs to be compelling
Economies of Shared Infrastructure, common STB and EPG to
Scale generate economies of scale
Conformance & Ensure STB conform to common standard
Brand Develop long roadmap to address entire base
