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DIGITAL TV: the New Frontier Update on DTT Development

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DIGITAL TV: the New Frontier Update on DTT Development DIGITAL TV: the new frontier Update on DTT Development Milan, 25thOctober 2005 DTT Development in Italy | Coverage Number of DTT Population multiplexes Coverage 2 mux 80% - ≃ 65% 2 mux >70% 1 + (1) mux ≃ 70% - (≃ 65%) 1 mux ≃ 68% Sardegna and Valled’Aosta should be the first Region to switch off the Analog trasmission: already by the 31st January 2006 (1) MUXs already Authorized but not yet Active Digital Terrestrial TV | 2 | | 2 | DTT Development in Italy | SET-TOP-BOX Penetration Estimates of over 3ml Decoders at the end of September 2005 Around 2ml MHP Decoders sold with State subsidies 192.000 subsidies left to be reserved to Valle d’Aosta and Sardegna (switch off January 2006) Number of decoders sold through State subsidies STBs Price History 2.000.000 € 390 Subsidy Net Price € 150 Retail Price (gross of Sudsidy) € 250 € 199 € 179 € 150 € 149 € 119 € 150 € 99 € 150 € 70 € 239 € 99 € 49 € 29 € 149 € 49 € 99 March 2004 September 2005 Jan 2004 Mar. 04 May 04 Sept 04 Dec 04 Apr 05 Today Source: Ministero Comunicazioni Fonte: Stima GfK Marketing Services Italia Digital Terrestrial TV | 3 | | 3| |3 | DTT Development in Italy | SET-TOP-BOX Penetration Profile of DTT STBs sold 40% MHP STBs sold without subsidy 56% MHP STBs sold with subsidy 4% Zapper Source: Estimate by GfK Marketing Services Italia, May 2005 Digital Terrestrial TV 3 | 4 | | 4 | DTT Development in Italy | Channel Offer MainMain analogueanalogue channelschannels inin simulcastsimulcast SportSport andand sportsport newsnews i i i i i SPORT i i i SOLOCALCIO News:News: financial,financial, international,…international,… KidsKids ShoppingShopping MusicMusic channelschannels i i i CinemaCinema newsnews PublicPublic serviceservice channelschannels ReligionReligion PayPay perper ViewView servicesservices i i i i i i Interactive Channels Note: “Rete A” multiplex is not included (broadcasting “All Music”, “The Club”, “Camera”, “Senato”) because its current coverage is below 50% Sources: DGTVi; Sat-Net; Booz Allen Hamilton analysis Digital Terrestrial TV | 5 | | 5 | DTT Opportunity Digital Terrestrial TV | 6 | | 6| |6 | DTT OPPORTUNITY | Mediaset Model FREE-TO-AIR TELEVISION NETWORK OPERATOR PAY-PER-VIEW Commercial TV Renting of Spectrum on Premium Content 3 generalistic channels proprietary Digital Terrestrial Access through: funded by advertising Transmitting Network to: Pay-per-View Multichannel non-captive TV content Pay-per-Time Theme Channel funded by provider (DVB-T) Pay-per- Category targeted advertising or mobile operators (DVB-H) telesales Interactivity Interactive and Enhanced advertising Interactive services Digital Terrestrial TV | 7 | | 7| |7 | - Free-To-Air TV - Digital Terrestrial TV | 8 | | 8| |8 | FTA TV | Enhanced TV Offer Program Info “live” Entertainment Original language Games Additional Tv Streams TV Guide (EPG) Services/ Public Utility Commerce Interactive ADV Teletext Digital Terrestrial TV | 9 | | 9 | FTA TV | Multichannel, first FTA Kids Channel launched , a new Free Kids Channel together with Broadcasting: “on air” since December 2004 UK - Audience Share (Multichannel free+pay) (Daily Breakdown in min. per Day) Others Entertainment 00:36 Theme 8% 1% Kids 00:16 News Entertainment 4% 38% Sport 00:10 Documentary 6% Cinema 00:09 Music Music 00:06 7% Documentary 00:05 News 00:03 Cinema 9% Theme Channels 00:01 Others 00:09 Sport 11% Kids 00:00 00:07 00:14 00:21 00:28 00:36 00:43 00:50 17% Source: BARB, Annual Report BSkyB, Analisi BAH Digital Terrestrial TV | 10 | | 10 | FTA TV | Multichannel, first FTA Kids Channel Individuals - 24 Hours Kids (4 – 15) – 24 Hours 13.8% 2.1% 10.0% 1.7% May 2005 September 2005 May 2005 September 2005 Source: Auditel Digital Terrestrial TV | 11 | | 11 | FTA TV | Multichannel, Home Shopping Channel MediaShopping C5, I1, R4 Production and post Production Facilities Corner Windows Retailing and Marketing Customer Service Delivery and Logistics Direct 24h DTT 120 employed people Marketing Channel Around 1.000.000 clients 29% Revenues from Publitalia - Telesales Internet Catalogue - “60 spots From Jan. to Sept. 2005 (*): - 33.000 average sales per month - 80 euro, average revenue per Sale (*) Canal D, analog FTA Terrestrial Channel with 65% coverage Digital Terrestrial TV | 12 | | 12 | - Network Operator - Digital Terrestrial TV | 13 | | 13| 13 | | NETWORK OPERATOR | Digital Terrestrial Broadcasting Digital Terrestrial Network DVB-T DVB-H Digital Terrestrial Set-Top-Box Mobile Handset, PDA, Portable TV Open Platform Open Platform Limited Broadcasting Capacity Tv content can be broadcast in original format Ideal for FTA Broadcasting and DVD quality Channel multiplication Low power consumption 2 MUX. already hosting 3rd party channels Needs only a small antenna 4 – 6 Mbps per channel 200 – 500 kbps per channel 4 – 6 channels per Multiplex 20 – 25 channels per Multiplex Digital Terrestrial TV | 14 | | 14 | NETWORK OPERATOR | Mobile TV Possible Business Scheme Content Providers Content Aggregator Commercial Agreement Mobile Operators Broadcaster Digital terrestrial Mobile Network Network Linear Broadcast Unicast & Free/PPV Tv Return on-demand Billing Content Path Content End Users Digital Terrestrial TV | 15 | | 15 | Pay-Per-View – “MEDIASET PREMIUM” Digital Terrestrial TV | 16 | | 16| 16 | | PAY PER VIEW | First Pre-paid card Offer on TV BENEFITS FOR VIEWERS BENEFITS FOR MEDIASET No dish required Focused Investments No Subscription Defensive Move “Pay for what you watch” Driver for DTT Penetration Additional Revenues Digital Terrestrial TV | 17 | | 17| 17 | | PAY PER VIEW | Clear and simple technology A B Insert the Select the card in the match STB D C Enjoy the Buy the match! match Digital Terrestrial TV | 18 | | 18 | PAY PER VIEW | Clear and simple technology DTT broadcasting stable and reliable Secure Encryption Software and Technology (Nagravision) New Releases of the Encryption Software uploaded OTA (Over-the-Air) System enables “Rechargeability” Credit recharged on the Credit used watching Mediaset Card Premium Content 4 1 Credit sent OTA Credit Purchased (on- (Over the Air) to the STB 3 2 line / off line) Digital Terrestrial TV | 19 | | 19 | PAY-PER-VIEW | New “Mediaset Premium” Card Cards 2-size “Mediaset Premium” card: - 30 Euro (o/w 5 Euro plastic card) - 10 Euro (o/w 5 Euro plastic card), bundled with Set-Top-Box offer “Mediaset Premium Club”, for Commercial Premises (Pubs & Clubs) “Mediaset Premium” is available in 2.500 consumer electronic stores “Mediaset Premium” Cards will expire 30th June 2007 Credit Recharge 6 Credit size from 10 Euro to 100 Euro, Recharge fee from 10% to 0%, respectively Credits can be recharged through: - Credit Card calling Mediaset Premium Call Centre or connecting to Mediaset Premium Website - “Scratch Cards”, available in more than 80.000 point of sales: - Consumer electronics stores -Kiosk - In Lottomatica and Sisal sale points; recharge codes will be printed directly from terminals Credits have to be activated via a dedicated Call Centre or Website. Digital Terrestrial TV | 20 | | 20| 20 | | PAY PER VIEW | Live “Serie A” Offer “SERIE A ’05/’06” - Mediaset Premium Offer 10 Teams 190 matches in a season 100 “Tier 1” matches (4 top Clubs) Juventus Milan Inter Roma Lazio 90 “Tier 2” matches 38 “DIRETTA PREMIUM” “SERIE A” season started 28th August 2005 Messina Livorno Siena Sampdoria Treviso Pricing 5 Euro per match 79 Euro, “Team Seasonal Ticket” + “Diretta Premium” 99 Euro, All Matches + “Diretta Premium” 760 Euro “Mediaset Premium Club”, All Matches + “Diretta Premium” Digital Terrestrial TV | 21 | | 21 | PAY PER VIEW | Movie Offer Movies - Mediaset Premium Offer 4 Movies per day (Monday – Friday) 100 – 150 Titles in ’05/’06 season Movies are available with: Original Language Subtitles 5.1 Dolby Digital Audio PPV From 2 Euro (library) to 4 Euro (1st run on TV) First window Movie Offer started 28th August 2005 available on TV Box Office 49126 24 months DVD Sale DVD Rental PAY per VIEW PAY TV FTA TV Digital Terrestrial TV | 22 | | 22 | PAY PER VIEW | “Mediaset Premium” …. Coming up! Reality Shows Concerts Fiction Comic shows Theatre plays Musical from September 2006: all UEFA Champions League matches Others … coming up! Digital Terrestrial TV | 23 | | 23 | MEDIASET | DTT Project Development Mobile TV Business (DVB-H) PHASE 3 Pre-paid card and MHP Integration (2006) Introduction of other pre-paid funcions (Es. Pay per time) n o i Launch of new PPV Content (Reality, Movies, etc.) t PHASE 2 a Introduction of “Seasonal Ticket” or “Package Ticket” r (2H2005) t e Launch of Rechargeable cards n e P T PHASE 1 Launch of PPV Offer on a Key content (Soccer) T (1H2005) D Launch of a new theme channel (Boing) Launch of DTT Platform Creation of a Digital Terrestrial Infostructure Digital Terrestrial TV | 24 | | 24| 24 | | DIGITAL TV: the new frontier Update on DTT Development Milan, 25thOctober 2005.
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