2008 Pyramid Research, www.pyramidresearch.

com

While every effort has been taken to verify the accuracy of this information,
Pyramid Research cannot accept any responsibility or liability for reliance by any
person on this information.
R E S E A R C H R E P O R T

Market Positioning and
Operator Strategies for IPTV

A Global Overview
January 2008
Preface
Telcos are increasingly positioning their IPTV services as part of bundled broadband packages, and the services are gain-
ing subscribers at rapid pace. At year-end 2007, the global IPTV subscriber base reached 15m clients and is expected to
grow more than six-fold in the next five years. Although regulations (such as those in China or Brazil) have played a role
in limiting the scope of IPTV portfolios, it is the marketing strategy employed by each telco that is determining the pace
of IPTV development in each market.
In this report, Pyramid Research provides a global snapshot of IPTV adoption and analyzes market dynamics in 10 dis-
parate countries, ranging from highly developed markets (France, for instance) to emerging markets where IPTV servic-
es are only at the cusp of being introduced (such as South Africa). In each country, we examine the shape and form of
IPTV offerings and put them in the context of competing broadband and pay-TV market offerings. Main highlights of our
analysis include:
IPTV is growing rapidly in the 10 markets studied, accounting for over 12% of broadband households after three years
of operation.
IPTV is increasingly positioned as a broadband value-added service within a bundled package.
All IPTV providers are actively building up their content lineups to include both exclusive content in fully dedicated
channels and VoD titles. DVR features are also increasingly common.
Most IPTV products are competitive price-wise.
Telcos are adding interactive services to their IPTV platforms to develop true home entertainment centers, and throw-
ing advertising into the mix.
2008 Pyramid Research
www.pyramidresearch.com
Questions? Call +1 617 494 1515 or email info@pyr.com
MARKET POSITIONING AND OPERATOR STRATEGIES FOR IPTV: A GLOBAL OVERVIEW
REPORT EXCERPT REPORT EXCERPT REPORT EXCERPT
Target audience
Operators
Identify the optimal market positioning for attracting audiences to your IPTV service. Benchmark against players in sim-
ilar markets, and discover the strengths of IPTV against other media.
Vendors
Assess the demand for IPTV infrastructure, devices and services in different market environments. Use our forecasts and
analysis of market dynamics and opportunities to develop go-to-market plans.
Content providers
Assess the value of IPTV trends, markets and business partners in order to develop strategies that will help you maxi-
mize the value of your existing content, tailor your new content with an effective go-to-market strategy in place and
reach a wider, more rewarding audience.
2008 Pyramid Research
www.pyramidresearch.com
Questions? Call +1 617 494 1515 or email info@pyr.com
MARKET POSITIONING AND OPERATOR STRATEGIES FOR IPTV: A GLOBAL OVERVIEW
REPORT EXCERPT REPORT EXCERPT
Table of contents
Table of contents...........................................................................................................................1
Table of exhibits............................................................................................................................2
Acronyms and abbreviations..............................................................................................................3
Companies mentioned in this report....................................................................................................4
Executive summary: Using VoD and interactive IPTV features, telcos continue foray into TV space........................5
Section 1: Global IPTV overview.........................................................................................................6
1.2 IPTV business models: Telcos offerings range from VoD-only to comprehensive packages with interactive technolo-
gies
1.2.1 Competitive market dynamics in broadband and pay-TV affect IPTV strategies
1.2.2 Telcos combine four key factors in building an IPTV strategy: broadband speed, content, interactive features and
bundling
1.3 A closer look at market conditions and telco strategies in 10 countries
Section 2: Case studies..................................................................................................................18
2.1 Brazil: Basic IPTV launches; telcos face regulatory barriers and mounting pressure from cable competitors
Snapshot of the Brazilian telecom and media marketplace
IPTV status
2.2 Chile: Telefnica and Telsur combine pay-TV platforms to fend off cable company VTR
Snapshot of the Chilean telecom and media marketplace
IPTV status
2.3 Peoples Republic of China: Pushed by media conglomerates, IPTV remains high-end
Snapshot of the Chinese telecom and media marketplace
IPTV status
2.4 Czech Republic: Steady adoption of IPTV while new pay-TV players enter the market
Snapshot of the Czech telecom and media marketplace
IPTV status
2.5 France: IPTV adoption high as telcos deliver multi-plays with advanced offerings
Snapshot of the French telecom and media marketplace
IPTV status
2.6 Netherlands: Cable puts pressure on IPTV, but telcos price multi-plays aggressively
Snapshot of the Netherlands telecom and media marketplace
IPTV status
2.7 Poland: Cable companies play an important role in pushing IPTV service
Snapshot of Polands telecom and media marketplace
IPTV status
2.8 South Africa: IPTV services in the making as pay-TV monopoly comes to an end
IPTV status
Snapshot of the South African telecom and media marketplace
2.9 South Korea: A new regulatory framework will give IPTV an important boost
Snapshot of the South Korean telecom and media marketplace
IPTV status
2.10 United States: IPTV enters crowded pay-TV market with advanced offerings to pursue competition
Snapshot of the US telecom and media marketplace
IPTV status
Additional resources.....................................................................................................................74
2008 Pyramid Research
www.pyramidresearch.com
Questions? Call +1 617 494 1515 or email info@pyr.com
MARKET POSITIONING AND OPERATOR STRATEGIES FOR IPTV: A GLOBAL OVERVIEW
REPORT EXCERPT REPORT EXCERPT
Table of exhibits
Exhibit 1: Global residential IPTV subscribers and change in subscribers.........................................................6
Exhibit 2: Recent IPTV deployments around the world...............................................................................7
Exhibit 3: Global residential broadband subscribers and change in subscribers................................................. 8
Exhibit 4: IPTV as proportion of broadband households in leading markets, 2007...............................................9
Exhibit 5: Global pay-TV subscriptions, 2007-2012.................................................. ................................10
Exhibit 6: Factors defining IPTV strategies by level of importance, under various market conditions......................12
Exhibit 7: IPTV service delivery models for telcos with moderate-speed, intermediate-speed and fast networks.......14
Exhibit 8: Key telecom and media indicators in 10 markets analyzed, 2007....................................................15
Exhibit 9: Snapshot of competitive dynamics and IPTV strategies in the 10 markets analyzed, 2007.......................16
Exhibit 10: IPTV features offered by select telcos in 10 markets analyzed, 2007..............................................17
Exhibit 11: Key Brazilian indicators in a global context, 2007.....................................................................19
Exhibit 12: Competitive environment in pay-TV and broadband sectors in Brazil, 2007.......................................20
Exhibit 13: Brazilian market for pay-TV, broadband and IPTV, 2007-2012........................................................21
Exhibit 14: Principal pay-TV service offerings in Brazil (prices in US$)...........................................................22
Exhibit 15: Key Chilean indicators in a global context, 2007.......................................................................23
Exhibit 16: Competitive environment in pay-TV and broadband sectors in Chile, 2007.......................................25
Exhibit 17: Chilean market for pay-TV, broadband and IPTV, 2007-2012.........................................................26
Exhibit 18: Principal pay-TV service offerings in Chile..............................................................................27
Exhibit 19: Key Chinese indicators in a global context, 2007......................................................................28
Exhibit 20: Competitive environment in pay-TV and broadband sectors in China, 2007.......................................29
Exhibit 21: Chinese market for pay-TV, broadband and IPTV, 2007-2012.........................................................31
Exhibit 22: Principal pay-TV service offerings in China..............................................................................32
Exhibit 23: Key Czech indicators in a global context, 2007.........................................................................33
Exhibit 24: Competitive environment in pay-TV and broadband sectors in the Czech Republic, 2007......................34
Exhibit 25: Czech market for pay-TV, broadband and IPTV, 2007-2012...........................................................35
Exhibit 26: Principal pay-TV service offerings in Czech Republic..................................................................36
Exhibit 27: Key French indicators in a global context, 2007........................................................................37
Exhibit 28: Competitive environment in pay-TV and broadband sectors in France, 2007.....................................39
Exhibit 29: French market for pay-TV, broadband and IPTV, 2007-2012..........................................................40
Exhibit 30: Principal pay-TV service offerings in France............................................................................42
Exhibit 31: Key Netherlands indicators in global context, 2007...................................................................45
Exhibit 32: Competitive environment pay-TV and broadband sectors in the Netherlands, 2007..........................47
Exhibit 33: Dutch market for pay-TV, broadband and IPTV, 2007-2012...........................................................48
Exhibit 34: Principal pay-TV service offerings in the Netherlands.................................................................50
Exhibit 35: Key Polish indicators in global context, 2007...........................................................................51
Exhibit 36: Competitive environment in pay-TV and broadband sectors in Poland, 2007.....................................52
Exhibit 37: Polish market for pay-TV, broadband and IPTV, 2007-2012...........................................................53
Exhibit 38: Principal pay-TV service offerings in Poland............................................................................55
Exhibit 39: Key South African indicators in a global context, 2007................................................................57
Exhibit 40: Competitive environment in pay-TV and broadband sectors in South Africa, 2007...............................58
Exhibit 41: South African market for pay-TV, broadband and IPTV, 2007-2012..................................................59
Exhibit 42: Principal pay-TV service offerings in South Africa......................................................................61
Exhibit 43: South Koreas key indicators in global context, 2007..................................................................62
Exhibit 44: Competitive environment pay-TV and broadband sectors in South Korea, 2007...............................64
Exhibit 45: South Korean market for pay-TV, broadband and IPTV, 2007-2012..................................................65
Exhibit 46: Principal pay-TV service offerings in South Korea......................................................................66
Exhibit 47: Key US indicators in a global context, 2007.............................................................................68
Exhibit 48: Competitive environment in pay-TV and broadband sectors in the US, 2007.....................................70
Exhibit 49: US market for pay-TV, broadband and IPTV, 2007-2012...............................................................71
Exhibit 50: Principal pay-TV service offerings in the US............................................................................73
2008 Pyramid Research
www.pyramidresearch.com
Questions? Call +1 617 494 1515 or email info@pyr.com
MARKET POSITIONING AND OPERATOR STRATEGIES FOR IPTV: A GLOBAL OVERVIEW
REPORT EXCERPT REPORT EXCERPT
Companies mentioned in this report
Alice
Arcor
AT&T
Bharat Sanchar
Bharti Airtel
Brasil Telecom
BSNL
C&M Co
Canal Cyfrowy
Canal Digitaal
Canal Plus
Casema
China Central Television CCTV)
China Netcom
China Telecom
Cinven
CJ CableNet
Comcast
Cox Communications
Crnogorski (T-Com)
Cyfra+
Cyfrowy Polsat
Czech On Line
Darty
DirecTV
Dish Network
EchoStar Satellite
Embratel
Essent Kabelcom
Free
GVT
Haier
Hanaro Telecom
HCN
Hyundai Communications & Network (HCN)
Jordan Telecom
KPN
KT
Lenovo
MTN
MultiChoice South Africa
Multikabel
Multimedia Polska
MWEB
Nasmedia
Naspers
NET Servios
Netia
Numericable
Oi
Orange
PCCW
Polsat
Rede Globo
SFR
Shanghai Media Group (SMG)
SK Telecom
Sky
SkyLife
Sony
Taekwang Industrial
Taiwan Interactive TV (TITV)
Tata Communications
Tele2 France
Tele2 Netherlands
Telefonia Dialog
Telefnica
Telefnica Chile
Telefnica O2
Telekomunikacja Polska (TPSA)
Telemar
TeliaSonera
Telkom SA
Telmex
Telsur
Teo LT
Time Warner Cable
TPS
TVA
Ukrtelecom
UPC NL
UPC Polska
Verizon Communications
Verizon Wireless
Vodacom
Volny
VTR
Warburg Pincus
2008 Pyramid Research
www.pyramidresearch.com
Questions? Call +1 617 494 1515 or email info@pyr.com
MARKET POSITIONING AND OPERATOR STRATEGIES FOR IPTV: A GLOBAL OVERVIEW
REPORT EXCERPT REPORT EXCERPT
Key questions answered
What makes IPTV successful? How important is pricing? Multi-play bundling?
In which markets will IPTV find receptive audiences?
How can IPTV make headway against cable and free-to-air TV?
What marketing positioning strategies are suitable for different types of markets?
What roles do the broadband and media marketplaces play in IPTV in the 10 countries examined?
About the Authors
Gabriela Baez-Managing Director; Head of Regional Practice
Gabriela Baez is a Managing Director and Head of Pyramids Regional Research group, where she is responsible for man-
aging the research products and personnel that form Pyramids largest research group. She has ample expertise in the
Spanish and Latin American telecommunications markets as well as a deep understanding of emerging access technolo-
gies.
Prior to her leadership of the Regional Research group, Gabriela was a Director of Pyramids consulting practice worked
on a wide variety of global projects with key clients. Projects included assessments of mobile content strategy in Latin
America, opportunity analysis for broadband-based applications around the world, best practice studies for providers of
emerging access technologies, market segmentation analysis for voice and data communications providers in Mexico,
market sizing for mobile data applications at the global level, and analyzing fixed-mobile business model convergence.
Derek Medlin, Senior Analyst
Derek Medlin is an Analyst for Pyramid Researchs consulting team, focusing on custom projects for Pyramid clients. He
is based out of Pyramids headquarters in Cambridge, Massachusetts and is responsible for projects that require the
acquisition of strategic information for customized intelligence, such the analysis of business environments and oppor-
tunities, the development of competitive strategies, due diligence and more.
Recently, Derek engaged in projects such as a global analysis of the concentration of mobile operators, a mobile hand-
set forecast for Latin American markets, strategic recommendations for VAR channel programs in eight markets, fixed-
line and mobile forecasts and an in-depth analysis of mobile advertising value-chains. His personal interests include con-
vergence, handsets, mobile content, mobile advertising and wireless mesh networks.
ORDER FORM
58 Charles Street
Cambridge, MA 02141
Phone: +1 617 494 1515 | Fax: +1 617 494 8898
LICENSE AGREEMENT
The undersigned acknowledges that the electronic material provided to you (the client) by Pyramid
Research is sold with a Single User or a Corporate License. A Single User License is for the sole use of
the client; the material shall not be posted on a corporate intranet or network, or reproduced. A
Corporate License allows the client to post the material in its entirety on a corporate intranet or
network and to reproduce the material for distribution within their organization only. Both licenses
prohibit entering the material into any electronic database either in part or in whole without the
written consent of Pyramid Research.
BILL TO: SHIP TO:
Name: Name:
Company: Company:
Street: Street:
City, State, Zip: City, State, Zip:
Phone: Phone:
Email: Email:
INVOICE / P.O. NUMBER REQUISITIONER SHIPPED VIA TERMS DELIVERY
Electronic / Email Immediate Electronic / Email
CREDIT CARD NUMBER CARD TYPE CARDHOLDER EXP MONTH/YEAR DELIVERY
Electronic / Email
QTY LICENSE TYPE DESCRIPTION UNIT PRICE TOTAL
1 US$2,490 US$2,490
Please Enter this order in accordance with the prices, terms,
license, delivery method, and specifications listed above.
AUTHORIZED SIGNATURE
Market Positioning and Operator Strategies
for IPTV: A Global Overview
2008 Pyramid Research
www.pyramidresearch.com
Questions? Call +1 617 494 1515 or email info@pyr.com
MARKET POSITIONING AND OPERATOR STRATEGIES FOR IPTV: A GLOBAL OVERVIEW
REPORT EXCERPT REPORT EXCERPT
SUBTOTAL US$2,490
SALES TAX $0
CORPORATE LICENSE FEE
OTHER
TOTAL
For more information or to purchase Market Positioning
and Operator Strategies for IPTV: A Global Overview
contact us at:
E-mail: sales@pyr.com
Phone: +1 617 494 1515
Online: www.pyramidresearch.com/pyramid_store.htm
Title: Market Positioning and Operator Strategies
for IPTV: A Global Overview
Publication Date: January 2008
Pages: 100
Exhibits: 79
Total Price: US$2,490
Upon receipt of an order, Pyramid Research will
e-mail a PDF version of the report.
Purchase This Report
2008 Pyramid Research
www.pyramidresearch.com
Questions? Call +1 617 494 1515 or email info@pyr.com
MARKET POSITIONING AND OPERATOR STRATEGIES FOR IPTV: A GLOBAL OVERVIEW
REPORT EXCERPT REPORT EXCERPT
About Pyramid Research
For 20 years, Pyramid Research has helped companies in the converging communications, media, and technology industries stay
ahead of market trends, understand competitive threats, and capitalize on opportunities. We advise the worlds leading vendors,
service providers, equipment manufacturers, and the financial community on how to implement best practices, build offensive
growth strategies, and drive profitability. Pyramid Researchs coverage includes over 90 countries with specialized research in
mobile/fixed communications, media, content, and CAPEX & OPEX.
Additional Reports Price
WiMAX Business Models: Will New Networks Ever Become Profitable?
WiMAX deployments continue to increase in number, with the technology being adopted in more than 70 countries across the world.
The business case, however, is yet to be proven, and the main question remains unanswered: how will WiMAX operators make
money? Should a WiMAX business model resemble that of fixed broadband or 3G, a mix of the two, or something completely new? To
ascertain whether WiMAX is truly worth the risk, this report analyzes the business models as well as operating and financial metrics
of existing and prospective WiMAX deployments in emerging and developed markets and those for enterprise use.
The Next Billion: How Emerging Markets are Shaping the Mobile Industry - Published: October 2007
This executive-level report analyzes the next billion mobile subscriptions in order to provide clients with a clearer understanding of
the significance of the emerging markets in future mobile market growth. It offers trends in penetration and total subscriptions as
well as figures for such measures as user penetration, churn rates, data ARPS and MOUs for 20 key countries.
From Triple-play to Quad-play: Strategies, Business Models and Best Practices-Published: September 2007
This reportprovides an in-depth examination of the evolution of multi-play models. Building on case studies and examples from
dozens of telco, cable, satellite, and other multi-play providers around the world, the report analyzes multi-play positioning (its
about protecting the core), pricing (discounts dominate), and the bottom-line performance of triple play (mixed). The report also
reviews the emergence of multi-play models driven by a new breed of players (mobile, satellite, WiMAX), and proposes a rethinking
of the concept of quad play.
Rethinking MVNO and MVNE Economics: The Future of Mobile Virtual Models - Published: August 2007
This report provides an in-depth examination of the economic factors behind the failure of many MVNO models and the successes of
others. The picture is not all negative: the gloom and doom predictions regarding the MVNO market fail to acknowledge that the
global MVNO subscriber base grew by 24% in 2006, to reach 84m users. There are profitable MVNO operations, from Virgin Mobile and
Tesco Mobile in the UK to TracFone in the US. Moreover, interest in becoming an MVNO has not faded away by any means; the list of
the companies exploring the MVNO opportunity continues to include big names from a range of markets.
Can Video on Demand Save IPTV? VoD Economics, Global Forecasts, and the Case for IPTV VoD - Published: June 2007
This report takes a long hard look at the VoD business model for IPTV operators, analyzing its value proposition, investment require-
ments, content dynamics, and overall market opportunity to assess whether telcos should take on the challenge or make do with
pay-TV alone.
US$2490
US$2,490
US$2,490
US$2,490
US$2,490
Additional Resources
Corporate Headquarters
58 Charles Street
Cambridge, MA 02141
USA
Tel: +1 617 494 1515
Fax: +1 617 494 8898
Europe, Africa, & Middle East
Bloomsbury House
Suites 17/18
4 Bloomsbury Square
London, WC1A 2RP
United Kingdom
Tel: +44 20 7430 2932
Fax: +44 20 7430 29333
Asia-Pacific
Suite 2701/2801, 11th Floor
AXA Center
151 Gloucester Road
Wanchai, Hong Kong
Tel: +852 2525 8455
Fax: +852 2525 8827
Americas
Waterford Business Park
5201 Blue Lagoon Drive
Suite 971
Miami, FL 33126
USA
Tel: +1 305 629 3615
Fax: +1 305 629 3100