IPTV German Cable Market

German Cable Market Development

Berlin, January 29th, 2015

Telecommunication Energy Economy and Media

Housing Industry

Consulting, Sales and Ambient Assisted Marketing Living

 Market Development

 CATV is still number one Broadband cable is serving almost 18 million households in Germany, closely followed by satellite.

17.9 m CATV homes connected*

*Source: Digitalisierungsbericht September 2014

> 1 Million Homes Connected

13 federal 8.5 m hc* states

3 federal 7.0 m hc* states

6 federal 1.7 m hc states

< 1 Million Homes Connected

nation- wide 0.99 m hc

nation- wide 0.63 m hc

nation- wide 0.25 m hc

CATV Telecommunication Operators Companies IPTV  Cable operators have TV & successfully entered the Radio broadband and fixed line telephony market in the last years Broadband Internet  Telecom providers have entered the much smaller TV market with IPTV offers Fixed line Telephony  City Carriers are building

City Carriers Carriers City broadband infrastructure and act as cable and Mobile telecom provider Communications

We see enormous competition developing !

6 German Cable Market

CATV Telecommunication Operators Companies IPTV  Distinction between market TV & operators are blurred. Radio Vodafone is active in the CATV market and is using KDG as fixed line unit. Broadband Internet  Telekom is building up new cable networks and is back in the CATV market. (Deutsche Fixed line Annington, HOWOGE, Flüwo

Telephony Bauen und Wohnen eG) . City Carriers City  City Carriers are under Mobile pressure with their products Communications and searching for cooperation (Coopetition)

A consolidation is taking place!

7 Quelle:: Market analysis German Cable Market

Consolidation

 Kabel Deutschland has been taking by Vodafone

 First co-run shops all over Germany – KDG broadband products are available at Vodafone shops and vice versa.

Duo-Shop Kurfürstendamm, Berlin

Consolidation

 Kabel Deutschland has been taking by Vodafone

 DTK Deutsche Telekabel was acquired by Primacom

* * *  At last Eplus was successfully taken over by Telefonica

 A complete buyout of Versatel by 1&1 took place

… and what else is happening?

 Unitymedia is still fighting for Kabel Baden-Württemberg …

 Successful legal action by NetCologne / Deutschen Telekom against Unitymedia

Oberlandesgericht Düsseldorf stoppt Übernahme von Kabel BW durch Liberty (Unitymedia)

Vom BKartA vorgesehenen Nebenbestimmungen nicht geeignet, Verstärkung der marktbeherrschenden Stellung hinreichend zu kompensieren Das Oberlandesgericht Düsseldorf hat heute die Entscheidung des Bundeskartellamts (BKartA) aufgehoben, mit welcher dieses Ende 2011 die Übernahme des Kabelnetz- betreibers Kabel Baden-Württemberg durch die zur Liberty Holding gehörenden Unity- media GmbH gestattet hatte.

….

Source: OLG Beschluss, 08/14 -.2013 - VI-Kart 1/12 (V)

… and what else is happening?

 Unitymedia is still fighting for Baden-Württemberg …

 Media-Broadcast will be sold …

 What will happen with Tele Columbus after the IPO …

 Winner of the consolidation

. The current situation will speed up the merger between Tele Columbus, Primacom and Pepcom.

. Smaller competitors as City Carriers will give up and / or enter into cooperation (Coopetition).

. The involvement of the Mobil-Provider like Telefonica in the process of consolidation, still remains to be seen.

 User Development

 Television is still number one Best high-definition quality television (SDTV/HDTV/ULTRA HD). More than 40 million flatscreens have been sold to German housholds.

Daily average viewing time per consumer 221 minutes* .

*Source: ARD-Online Studie 2013

 Digital-TV viewing in CATV Networks is slowly increasing • All CATV households are receiving Digital-TV, but only 62.9 %* of those are using it (last year 55.9 %). Almost all networks are „reanalogisiert“ and are receiving still Analogue-TV.

HDTV offers are speeding up the development. When will be the right time to switch off Analogue-TV?

*Source: Digitalisierungsbericht September 2014

 Use of the Internet is common practice Nation wide almost 78% of the population has access to the Internet – therefrom > 5 million subscribers via CATV. Some backlog in the eastern part of Germany.

Housing Industry: The future rentability of a flat will be depending on broadband Internet offer!

 Development Cable-Internet and Cable-Telephony

Cable Internet and Telephony (in million)

Internet subscriber Telephony subcriber

Source: ANGA December 2013

 Bandwidth availabilty in Germany > 50 mbit/s

13% via DSL and FTTX

64% via Cable Networks

Source: ANGA December 2013 / TÜV Rheinland /BMWi

 Content Development

 VoD and OTT offers are on the increase in Germany Those born between1990-1995 are consuming increased media librairies. But the elder generation is catching up!

Trend: Access instead of ownership of media content . : Quelle: House of Research 2014

 Content is still King!

Grenzenlose Unterhaltung mit Highspeed Internet, HDTV und Telefon für die ganze Familie Mit dem Horizon HD Recorder verwandeln Sie Ihr Wohnzimmer in eine faszinierende Welt der Unterhaltung. Sie schauen Fernsehen in HD, eine weitere Person surft im Netz, und ein drittes Familienmitglied plaudert zur gleichen Zeit am Telefon.

Quelle: Unitymedia 2014

 „Danke schön“ for your attention!

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