Mobile TV Middle EastMobile TV Middle East

Fabian Olivier

Director – Corporate Strategy

EITC (du)

November 3rd & 4th 2008, Jumeirah Beach Hotel, Dubai

du

New telecommunication operator in the UAE

Quad play operator offering fixed, mobile, broadband and

TV services

Launched mobile operations in February 2007

Ambition to play a leading role in the convergence of

Telecom and Media

“We are moving from two worlds of unshared

certainties into one world of shared uncertainties”,

Osman Sultan, CEO of du

Leading the Growth of Mobile Video Services in the MENA Region

Is there a market in the MENA region for

video services?

Do consumers show an interest in video

services?

How to accelerate the take up of mobile

video?

The competition intensifies: 2 illustrations

Case study: du’s mobile TV servicesMENA stands for Middle East and North Africa

Different Ecosystems, Complementary Interests

Telecom – MobileTelecom – Mobile

175 million mobile users served by

50 operators

Growing mobile culture: 55%

penetration

30 Bn $ market, 87% voice telephony

Mobile data represents 7% of mobile

revenues (vs. 20% worldwide

average)

Profitable industry

175 million mobile users served by

50 operators

Growing mobile culture: 55%

penetration

30 Bn $ market, 87% voice telephony

Mobile data represents 7% of mobile

revenues (vs. 20% worldwide

average)

Profitable industry

Focus on mobile content as a

growth lever

Focus on mobile content as a

growth lever

Media – TVMedia – TV

250 million eyeballs served by 400 TV

channels dominated by the MBC

bouquet: 80m people watch 1 MBC

channel every day

Large content portfolio: ART, Rotana

Aflam (movies), ART (sports), Rotana

(music)

Strong TV culture: 75% watch TV 7/7

4 Bn $ market, mainly advertising

Few profitable players

250 million eyeballs served by 400 TV

channels dominated by the MBC

bouquet: 80m people watch 1 MBC

channel every day

Large content portfolio: ART, Rotana

Aflam (movies), ART (sports), Rotana

(music)

Strong TV culture: 75% watch TV 7/7

4 Bn $ market, mainly advertising

Few profitable players

In search for new revenue sources from

new media distribution (online &

mobile)

In search for new revenue sources from

new media distribution (online &

mobile)

All numbers stated refer to the MENA region, source: ITU, Arab Advisor Group, Informa Telecoms & Media (2007)

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+

How Big is the Opportunity Today in the MENA Region?

Online VideoOnline Video

40 million internet users (13%

penetration)

48% of internet subscribers are broadband

40-50 m$ online advertising market, and

growing fast (50% p.a.)

40 million internet users (13%

penetration)

48% of internet subscribers are broadband

40-50 m$ online advertising market, and

growing fast (50% p.a.)

Mobile VideoMobile Video

175 million mobile users (55%

penetration)

Fast 3G phone uptake (15-20 m)

175 million mobile users (55%

penetration)

Fast 3G phone uptake (15-20 m)

All numbers stated refer to the MENA region, source: ITU, Arab Advisor Group, Madar Research Journal (2007)

Slow e-payment adoption

Few regional players, UGC or

aggregators

Slow e-payment adoption

Few regional players, UGC or

aggregators

Subscription based market at its

infancy

Accessibility

Ubiquitous UMTS & HSDPA

networks rollout across the entire

region

Complementary technologies (e.g.

DVB-H, MediaFLO …) roll out

Subscription based market at its

infancy

Accessibility

Ubiquitous UMTS & HSDPA

networks rollout across the entire

region

Complementary technologies (e.g.

DVB-H, MediaFLO …) roll out

The MENA market is not mature yet but is catching up very fastThe MENA market is not mature yet but is catching up very fast

Leading the Growth of Mobile Video Services in the MENA Region

Is there a market in the MENA region for

video services?

Do consumers show an interest in video

services?

How to accelerate the take up of mobile

video?

The competition intensifies: 2 illustrations

Case study: du’s mobile TV servicesMENA stands for Middle East and North Africa

US Research confirms the Success Story of Online & Mobile Video *

119 million US citizens watch 2H19’ of online video each per

month

That is 73% of the internet population but 9% of their overall

internet usage

4.4 million US citizens watch 3H15’ of mobile video each per

month

That is 2% of the US mobile subscribers but 31% of those who

subscribe to mobile video* The Nielsen Company, May ‘08

Leading the Growth of Mobile Video Services in the MENA Region

Is there a market in the MENA region for

video services?

Do consumers show an interest in video

services?

How to accelerate the take up of mobile

video?

The competition intensifies: 2 illustrations

Case study: du’s mobile TV servicesMENA stands for Middle East and North Africa

1. User Experience

Improve the Usability and Intuitivism to experience mobile video as

simply and easy as traditional TV

- Today, you will spend on average 1:40 min to access mobile

TV service and will need 5 clicks (du service)

- A few actors who are playing a key role in reducing the service

complexity:

“As with the original iPhone, buyers are taking out bigger tariff bundles, and are proving to be higher spending customers. They consume on average 25 to 30 times more data than other Smartphone users. So the user interface and applications make a huge difference”, René Obermann, CEO of Deutsche Telekom

2. Price

Make the offering Affordable to

encourage fast adoption of mobile video

services

- Generalize ‘open access’ pricing

models

- Lower mobile TV offerings down to

the psychological threshold of 10$

per month

- Reduce substantially mobile data

pricing, which, today, increases

exponentially with the bandwidth

consumption

Operator Country

Egypt

KSA

Kuwait

UAE

UAE

* Arab Advisors Group, 3G Cellular Services in the Arab World, July ‘08

Unlimited Mobile TV offerings of operators active in the MENA region *

3. Content

Create Appeal and Excitement by making the mobile video experience different from linear TV channels

- Include pay TV channels in the mobile TV offering :

- Innovate with

UGC mobile video :

Short thematic TV programs : joke TV, celeb TV, best of TV …

Contextual, event based TV programs

Interactive services: push SMS ...

• NBC’s coverage of the Olympic opening ceremony was watched on a mobile device by 436,000 AT&T mobile customers

• Live Coverage of 2008 College Football Season: AT&T and Verizon Wireless subscribers enjoy more than 200 hours of live programming on their mobile phone

• Al Jawal (KSA) and Vodafone (Egypt) partner with ART

• Watanyia (Kuwait) partner with Showtime

4. Operating Model

Create a Media DNA to successfully move from “content enabler” to

“content retailer”

Embrace the Media Culture in planning, packaging, promoting and

branding the mobile video services in order to create awareness and

excitement

Scheduling, programming, catalogue, hits, eyeballs,

audience, viewing time are new concepts for

“technology driven” Telecom operators

Telecom Operators have to breath, feel and think

like a Media company … with intuition

Leading the Growth of Mobile Video Services in the MENA Region

Is there a market in the MENA region for

video services?

Do consumers show an interest in video

services?

How to accelerate the take up of mobile

video?

The competition intensifies: 2 illustrations

Case study: du’s mobile TV servicesMENA stands for Middle East and North Africa

Fast Moving Independent Aggregators pose a Real Challenge to Telecom Operators

Largest free ad supported mobile video destination for consumers

5 million unique visitors

300,000 channels of professionally programmed videos

Average usage: 9.28 min per visit

Average visit: 5.6 visits per month

led by a team that includes veterans from yahoo, napster, paypal and tivo

Top mobile content portal in UAE and

KSA!

Telecom Operators enter Vertically in the Multi Channel Distribution of Video Services

France Telecom secured premium broadcast rights of the

French football league on an exclusive basis to set up its triple

play TV offering (IP, Mobile, Internet)

Orange Foot, France Telecom's dedicated

football channel!

Leading the Growth of Mobile Video Services in the MENA Region

Is there a market in the MENA region for

video services?

Do consumers show an interest in video

services?

How to accelerate the take up of mobile

video?

The competition intensifies: 2 illustrations

Case study: du’s mobile TV servicesMENA stands for Middle East and North Africa

Du’s Mobile TV Services: A Promising Future

3.96

3.413.10

Duration TV sessions Average duration per TV session (min)

23 TV channels including 3

branded channels

Specials:Mobisodes Freej

Du’s Mobile TV Services: Few Channels attract Most Eyeballs

0%

100%

1 2 3 4 5

Cumulative duration

Cumulative TV sessions

Top 5 TV Channels

Mobile Video is A Multi Industry Ball Game

MediaMedia

ContentContent

E-CommerceE-Commerce

HandheldHandheld

Advertising

Sponsoring

Advertising

Sponsoring

Telecom / ISP

Telecom / ISP