2011. 4. 29
IPTV Business of SK Broadband
We will review…
Overview of IPTV Business
IPTV Business Strategy
Future of IPTV Business
3
1. Overview of IPTV Business
High-speed Internet Telephone Corporate Service New Business
High-speed internet- Fiber Lan(100M)xDSL(ADSL / VDSL) - cable modem(HFC) Value added servicesIPTV service
local calllong distance callInt’l call(005,00766)VoIP(internet call)universal access numbercollect call /lifelong number
Mobile OfficeZone ServiceFMC ServiceManaged ServiceSolutionMPLS VPN QoS
Introduction of SK broadbandA.
SK broadband is the first in the world to commercialize ADSL, high-speed internet, on which Korea’s IT prowess has been built.
Domestic/Int’l Leased LineInternet DirectMetro Ethernet Leased LineData VPNCorporate phoneIPTIDC
Business Portfolio
4
1. Overview of IPTV Business
TV
Hub
PC
Phone
STBVideo On Demand
VAS
Contents H/E Platforms Network Terminal
Real time Broadcast
Real timePremium
IP Network
【 User’s Location 】【 IPTV Head End 】
IPTV supplies high-definition, real-time broadcasting service to the customers and IPTV
STB(Set Top Box) is easily installable on High-speed internet regardless of the locations
File server
SCS
LGS
VoDSystem
CDN
Access NWBackbone
AR
IP-QAM
ONUOTR
L3
L2
L2
HFC
FTTx
B/B Encoder CAS
IPTV Service ConfigurationB.
☞ Head end is comprised of VOD, VAS and Linear channel service by the high-definition images with high quality
sounds.
5
SK IPTV Subscribers (’10. 4Q)
SK broadband launched the world’s first VoD Service through IP N/W in 2006, and has been kept innovating IPTV service as the IPTV Pioneer of Korea.
(unit ‘000)
☞ Bundle marketing policy with the Internet product
History of IPTV serviceC.
1. Overview of IPTV Business
IPTV Subscribers in Korea
☞ The World Shortest Record of New Media Industry
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
SKB KT LGU+
• Hit 1 Million Subs in 9 months from launching• Hit 2 Million Subs in 16 months (April 2010)• Hit 3 Million Subs in 24 months (Dec 2010)
•947,650 subscribers including VOD only Subs
0
200
400
600
800
1000
06 07
1H
07
2H
08
1H
08
2H
09
1H
09
2H
10
1H
10
2H
Total Pre-IPTV IPTV
1. Overview of IPTV Business
Service StructureD.
Basic Subscription
Premium 92 Channels
Light 77 Channels
Economy 29 Channels
Additional Charged Service
TVOD Current Movie
Premium SVOD
Terrestrial TV PackPremium Movie Pack
Game From kids to Adult Home Karaoke
Info Stock, Art
Btv, IPTV of SK Broadband supplies the diverse contents to customer and received the best NCSI(National Customer Satisfaction Index) 2011
•Subscription is available by the 3 different
Products by the Pricing differentiation
FeaturesProduct
• A full range of contents from latest dramas and
movies to major TV programs
• popular cable channels, adult contents, sports and
education/life-style contents
• Linear Channel Catch-up Service enables to replay
the major linear channels by VOD function
• SVOD is available for the basic subscribers
• A la carte Channel subscription is available with the
Light, Economy subscribers
• Current movies and library movies are available
• Additional interactive services are available
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2. IPTV Business Strategy
Industry StructureA.
Telecommunication Corporations’ expansion toward the media business is essential approach for the vision of Convergence of Media and Communication.
Competitors’
Potential
approach to
media biz
Potential
competitors’
High-speed
internet service
Growing
Bargaining Power
of customer
Potential
competitors’ TV
service
No special
Bargaining Power
of Supplies
8
2. IPTV Business Strategy
Consumer StructureB.
30s old, efficient consumer is the profile of the core customer of Btv, but Kids and teenagers audiences are also considered as the active users.
Age Distribution Graph Age-specific Use Graph
17%
34%
31%
18%14%
24%
40%
20%
14%
24%
40%
20%
14%
28%
44%
14%
15%
32%
39%
14%
50s and over
40s
30s
Under 30
B internet Household
Btv Household
Hit Ratio TVOD RatioBtv Household
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2. IPTV Business Strategy
VOD – Power to attract CustomerC.
IPTV Subscribers get more satisfaction with VOD Programming in addition to the Linear Channel service.
Power of SVOD Theme menu Programming
• Essential service for the basic subscribers• Programming with On Air Promotion makes
effective attraction
☞ The data shows the update for the theme
programming works effectively for a week.
※ Source : SKB(Btv) AGB Nielson Korea (Cable TV), May 2008
• Essential service for the IPTV basic subscribers• SVOD maintain more stable frequent use than
Linear Channel Service
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Btv
Cable TVKids Programs
TV Drama series
TV Drama Series
0
20
40
60
80
100
120
140
0
100
200
300
400
500
1/28 1/30 2/1 2/3 2/5 2/7
Total 3D Special Lunar Year
10
2. IPTV Business Strategy
VOD - Additional RevenueC.
Transactional VoD Programming
• Setting the early window by the collaboration with the Contents Providers
• Premier service which runs the title simultaneously with the theater
• Packaging the contents Premium Subscription VoD Product
☞ Balance of SVOD, TVOD, and Premium SVOD window will maximize the revenue, preventing the latent complain of subscribers
VoD Programming of IPTV makes more revenue than the other media for Particular Transactional VOD and Premium Subscription VOD base.
Event Title: Perfect Guide to Spiderman3
Event Promotion Period: 2007. 4. 25 ~ 2007. 5. 09
Prize
1st Prize(5 persons): Spider-man3 Props
2nd Prize(20 persons): Spider-man3 Souvenirs
3rd Prize(200 persons): 2 Spider-man3 Movie Tickets
Electric Ticket will be provided. Only Spider-man3 movie can be reserved
Spider-man1
Spider-man 2
Spider-man 3 Trailer, TV Spot, Making Film, Interview, etc.
Spider-man Animation, Episode 1~13 (30m/each) / Animation Trailer
2. IPTV Business Strategy
VOD – Revenue ContributionC.
Video on Demand service is the most competitive function for IPTV platform at its early stage comparing to the other TV media including Cable TV, Satellite TV.
<Revenue Structure>
Subscription Fee
STB Rental Fee
Interactive Contents
Ads.
VoD
Shopping
53%
21%
12%
1%
3%8%
etc 3%
☞ VOD takes the highest portion in the revenue structure except the subscription fee.
<BCG Matrix>
☞ VOD makes the revenue easily and steadily at
least for the first few years more than any other
services of IPTV do.
?VoD
Growth rate
Revenue Portion
Basic Subscription
Interactive Contents
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2. IPTV Business Strategy
Interactive Service D.
26 different types of Interactive service regarding info, game and various entertainment through strengthening the Link service.
Participation Event
• Multi-Broadcasting of World Cup, Commentator selection service and Score Quiz event etc
☞ Linear channel - VOD - Commerce etc
Interactive linked Service
Interactive Games
• Customer regards Game as the Value added Service on TV Platform
• Game Developers participate proactively considering IPTV as the additional market
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2. IPTV Business Strategy
AdvertisementE.
“Personalized” TV service
Advertisement is evolved into interactive pattern from the conventional download method.
Selective Target Ad Interactive Commercial
• Planning Event Customer Participation
• Link advertisement with mobile
☞ From Unilateral contents category targeting
To the recommended advertisement
Ad-Agency Geographic
Population Time
Household Age
Channel
Broadcasting companies
Target Analysis
Potential Target
Ad-Server
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2. IPTV Business Strategy
CUG Service – MeritF.
CUG service helps the followings.
○ Spending too much time on employee education?
○ Need a place for your own subscribers or group?
○ Need a place for promotion or advertisement?
○ Want to sell the product to your own group?
○ Need a communication tool between subsidiaries?
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2. IPTV Business Strategy
CUG Service – What to ServiceF.
Created to share the menu for the Closed User-Group(companies and closed communities), providing their own programming management through IPTV
CUG Advantage
Independent Linear channel + VOD operation with competitive price
Creating new Biz Models (Commerce, Advertise, Education etc)
B TV server
STBTV
CUG + Btv service
CUG only service
STBTV
Information
Notice
Promotion
Contents
Linear Ch
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2. IPTV Business Strategy
The contents provision time was shortened by the atomization of system and the
automatic distribution is available through the opening of the CMS system to contents
providers and more contents are provided.
[CMS]
[Encoding Server] [Inspection Server] [H/E]
[File-Distribution System]
MPEG2
H.264
[Material]
[Encoding Automation System]
[CDN]
IDC
Upload
File
synchronization
XPG
distributionContract
META
InfoProgramming Acquisition ingest Encode DRM
Inspection/
Backup
Operation
InfoAs Is
To Be Linking
[Open Contents Operation Process]
☞ Contents providers are able to register their own contents through CMS and Encoding tools
CUG Service - Contents Operation SystemF.
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2. IPTV Business Strategy
Education IPTV service brings the entertaining education opportunities to the Public
school and Home. IPTV service with mobile and web service enables the seamless
learning.
EducationG.
Parents
Public School Private Institute
Students
Homework
Monitor for the study/ location
Teaching Material
Leisure time useGroup Study
Long-distance lecture
Mobile Education
18
3. Future of IPTV Business
How to cope with the cost of Content, Set Top Box, and SAC affects to swift expansion of IPTV business as the best TV media.
<Cost Structure>
What to innovateA.
STB
Flat Fee
Excessive MG
Contents SAC
1 exclusive Provider
M/W dependen
cy
Memory Capacity Burden
No User contents
Hurdle for New
comer
Saturated Internet market
Hurdle for Nscreen
☞ N-screen service spreads SAC to the
diverse business and decrease the
dependency to the STB
Open Ecosystem
N-Screen Platform
☞ Open Ecosystem enhances the
distribution of the users, which increases
the customers’ satisfaction and decrease
the dependency to the Major contents
owner
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3. Future of IPTV Business
Open EcosystemB.
TV Service by the Consumers’ ParticipationPladucer
Person
Social Club
Mall, Company
Establish Integrating Platform
Storage
Payment
System
Auto
Transcoding
Contents Management
System
Distribution
Live SystemCommunication
Tool(Bulletin Board)
1) Renting Platform 2) Contents Market
With the strategy to increase the user’s proactive participation, IPTV will get more active contents transaction
3) Programming Strategy for Genre/Community
Concept
▶ IPTV provides new space for direct trading of contents
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SK broadband is expanding IPTV service from TV to N-screen service as the smart media platform with the collaboration of SK affiliates.
Cyworld (on Service)Melon (on Service)
• Btv supplies “Cyworld” the famous
community web-service to Btv
subscribers on TV base
• Btv supplies “Melon” the famous
Mobile music market of SKT to Btv
subscribers on TV base.
N-Screen StrategyC.
3. Future of IPTV Business
TV+STB/ Built in STB
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Open Ecosystem
PC
GameConsole
MobilePhone
To Be ModelD.
3. Future of IPTV Business
To expand the business, IPTV shall be considered a part of “Smart media” more familiar to the consumers, and will take the open ecosystem the consumers will participate proactively
Contents Provider User
Pad
N-Screen Platform
IPTV as Smart media
Platform
22
IPTV is evolving as
The Eldest Brother
of Smart Media
Thank you