OTT VIDEO POTENTIAL IN MENA: THREATS AND ... #AMTMT OTT VIDEO POTENTIAL IN MENA: THREATS AND...
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Transcript of OTT VIDEO POTENTIAL IN MENA: THREATS AND ... #AMTMT OTT VIDEO POTENTIAL IN MENA: THREATS AND...
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
SAUDI ARABIA TELECOMS SUMMIT 2016
BUILDING BLOCKS FOR SUCCESSFUL OPERATOR
STRATEGIES
#AMTMT
OTT VIDEO POTENTIAL IN MENA:
THREATS AND OPPORTUNITIES FOR
TELECOMS OPERATORS
KARIM YAICI
NOVEMBER 2016
EVENT SPONSOR
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
The TV and VoD markets are evolving and transforming
significantly, driven by four main factors
2
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
The TV and VoD markets are evolving and transforming
significantly, driven by four main factors
3
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
The TV and VoD markets are evolving and transforming
significantly, driven by four main factors
4
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
The TV and VoD markets are evolving and transforming
significantly, driven by four main factors
5
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
Free or illegal options
particularly in North
Africa
IPTV-driven, eroding
satellite TV’s stronghold
Satisfies needs of many
consumers in MENA
Free satellite services and piracy pose challenges to the
adoption of pay-TV services in MENA
6
Illegal access to non-local
DTH and OTT services
High impact
Sporting rights, particularly
for football, are important in
the Middle East
Medium impact
Pan-regional (Arabic)
content is widely available
Low impact
1 ASO = Analogue switch-off (the migration of all analogue broadcasts to digital transmission).Source: Analysys Mason
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
Broadcasters and content distributors have led OTT video in
the ME, but independent providers are challenging this [1]
7
Category of playersName of
company
Production/
aggregationDistributor
Name of OTT platform (year of
launch/entry to ME)
Regional MBC Shahid (2011)
Foreign
Starz Starz Play (2015)
Sony India Sony Liv (2013)
Zee DittoTV (2012)
Eros Int. ErosNow (N/a)
Pay-TV
providers
OSN GO Online TV (2014)
beIN beIN Sports Connect (2014)
Selevision Seevii (2016)
Telcos and
pay-TV
providers
Du Du View (2014)
Etisalat eLife ON
Mobily mView (2013)
STC My Invision (2012)
Regional
Icflix Limited Icflix (2013)
Istikana Limited Istikana (2011)
Spuul Planned Spuul (2012/13)
ForeignHungama Limited HungamaPlay (2015)
Netflix Limited Netflix (2016)Source: Analysys Mason
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
Source: Analysys Mason
Broadcasters and content distributors have led OTT video in
the ME, but independent providers are challenging this [2]
8
Category of playersName of
company
Production/
aggregationDistributor
Name of OTT platform (year of
launch/entry to ME)
Regional MBC Shahid (2011)
Foreign
Starz Starz Play (2015)
Sony India Sony Liv (2013)
Zee DittoTV (2012)
Eros Int. ErosNow (N/a)
Pay-TV
providers
OSN GO Online TV (2014)
beIN beIN Sports Connect (2014)
Selevision Seevii (2016)
Telcos and
pay-TV
providers
Du Du View (2014)
Etisalat eLife ON
Mobily mView (2013)
STC My Invision (2012)
Regional
Icflix Limited Icflix (2013)
Istikana Limited Istikana (2011)
Spuul Planned Spuul (2012/13)
ForeignHungama Limited HungamaPlay (2015)
Netflix Limited Netflix (2016)
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
Broadcasters and content distributors have led OTT video in
the ME, but independent providers are challenging this [3]
9
Category of playersName of
company
Production/
aggregationDistributor
Name of OTT platform (year of
launch/entry to ME)
Regional MBC Shahid (2011)
Foreign
Starz Starz Play (2015)
Sony India Sony Liv (2013)
Zee DittoTV (2012)
Eros Int. ErosNow (N/a)
Pay-TV
providers
OSN GO Online TV (2014)
beIN beIN Sports Connect (2014)
Selevision Seevii (2016)
Telcos and
pay-TV
providers
Du Du View (2014)
Etisalat eLife ON
Mobily mView (2013)
STC My Invision (2012)
Regional
Icflix Limited Icflix (2013)
Istikana Limited Istikana (2011)
Spuul Planned Spuul (2012/13)
ForeignHungama Limited HungamaPlay (2015)
Netflix Limited Netflix (2016)Source: Analysys Mason
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
OTT players have formed partnerships with operators and
vendors to increase their reach and facilitate payment
10
OTT value chain in the Middle East
Broadcasters and
movie producers
Access provider or
distributor
Device
manufacturers
Device
manufacturers
Distribution
partnership
Content partnership
OTT platform (local and foreign content
OTT platform (local and foreign content)
OTT platform (Western or niche content)
OTT platform (Arabic and local content)
Pay-TV operators
Telcos/IPTV operators
Local or regional
Foreign
Indian OTT players
Local and other foreign
players
OTT providers
Device partnership
Billing and discoverability partnership
No direct OTT
presence
Source: Analysys Mason
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
Saudi Arabia: Rapid growth in the number of fibre
households will boost IPTV while OTT will be limited
11
PER MONTH
$
33.219%
PAY-TV MARKET KPIs 2021
11%
IPTV
DTH
OTT
Source: Analysys Mason
12%
67%
21%
IPTV DTH
OTT
33%
29%
22%
12%4%
beIN OSN
ART STC
PAY-TV MARKET LEADERS, 2015
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
The OTT video market is a challenge and a revenue
opportunity for CSPs for a wide range of reasons
12
Likely to continue to
use OTT on-demand
content when they
settle down
44% of consumption
by young people in
MENA is on mobile,
tablet or computer
Supporting growing
OTT video usage
Supporting wider
range of devices
which users watch
OTT video
Falling voice ARPU
Low penetration of
data services
Flat data ARPU
Commissioning
unique TV
series
(e.g. Icflix)
Need to grow
subscriber base to
maintain good
market
capitalisation
Entering new
markets where
high download
speeds are not
readily
available
Need to adopt new
business models to
broaden subscriber
base
Source: Analysys Mason, Horowitz Research, Investopedia, Viacom
Risk of
cannibalising
IPTV
Source: Analysys Mason
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
CSPs have several options for turning the growth of OTT video
consumption to their advantage
13
Partnerships
with OTT video
providers
Offering solutions
to providers of
OTT video
services
Launching OTT
video services to
extend reach and
revenue
Competition Co-operation
Co
st
co
ntr
ol
Re
ven
ue
ge
ne
rati
on 3 2
1
Source: Analysys Mason
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
CSPs can partner with OTT video providers to increase
ARPU and customer loyalty
14
OTT video provider partnerships with CSPs, by region
1
Source: Analysys Mason
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
OTT video providers can use CSPs to make content more
discoverable, but CSPs need to extend their capabilities
15
2
CSPs’ features and capabilities and their influence on the OTT video value chain
Subscriber
base
Basic
service
support
Enhanced
user
QoE
Enhanced
revenue
Increasing opportunity for CSPs and
appeal of CSPs to OTT video providers
Source: Analysys Mason
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
CSPs can provide CDN services or partner with CDN
providers to support OTT video providers
16
Simple CDN and CSP network delivering OTT video
CSP CDN
Mobile
ISP (CSP)
Fixed ISP
(CSP)
Fixed broadband
access network
OTT video provider
Mobile broadband
access network
Users
Specialist CDN provider
2
Source: Analysys Mason
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
CSPs may use OTT video to enhance an IPTV or pay-TV
service, or may offer OTT video as a standalone service
17
OTT video options to enable CSPs to extend reach and generate new revenue streams
Extend TV service
(TV everywhere)
1
Core CSP service1
(same country)
CSPThird party
OTT video options for CSP
Core CSP service
(different country)
Core CSP service
(same country)
Core CSP service
(fixed and mobile broadband) IPTV and
pay TV
Additional OTT video
2
Standalone OTT video
(foreign markets)
Standalone OTT video
and pay-TV lite
3
3
4
Source: Analysys Mason
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
Key takeaways
18
1 The pay-TV subscription market in MENA will grow significantly
2 OTT video will have a mixed impact in the region
3 The growth of OTT video services provides CSPs with an opportunity
to support consumption and develop new revenue streams
Saudi Arabia Telecoms Summit 2016: Building blocks for successful operator strategies
© Analysys Mason Limited 2016
Contact details
19
Cambridge
Tel: +44 (0)1223 460600
Milan
Tel: +39 02 76 31 88 34
Dubai
Tel: +971 (0)4 446 7473
New Delhi
Tel: +91 124 4501860
Dublin
Tel: +353 (0)1 602 4755
Paris
Tel: +33 (0)1 72 71 96 96
London
Tel: +44 (0)20 7395 9000
Singapore
Tel: +65 6493 6038
Madrid
Tel: +34 91 399 5016
Manchester
Tel: +44 (0)161 877 7808
@AnalysysMason linkedin.com/company/analysys-mason youtube.com/AnalysysMason analysysmason.com/RSS
Karim Yaici
Senior Analyst
Boston
Tel: +1 202 331 3080
Hong Kong
Tel: +852 3669 7090