Platforms, services, and devices

Breakdown of viewers between TV reception mode (% of HHs)

100% 90% 80% 70% 60%

2,0

2,7 19,3

4,1 10,8 37,0 10,7 1,1

3,0 6,0

10,2 14,6

2,0

7,8

11,0

36,5 14,0

43,9

42,9 14,5
50% 40%

18,4 36,0 62,0 53,2 16,2

58,6 10,0 75,0

IPTV Satellite Cable Pay DTT DTT

2,0

13,3 0,2

30% 20% 10% 0%

41,0 27,0 7,0

UK Italy

32,0 47,6 11,0 0,0

Spain France

56,7

1,8

ATT

0,0 7,0 0,0

Germany

25,5 14,0 0,0

Sweden

0,0
Finland

0,0
Denmark

0,0
Netherlands

Source: MAVISE database; Ofcom ICMR 2010; IDATE TV 2010

Abbreviations: HH - Household IPTV Internet Protocol TV DTT Digital Terrestrial Television ATT Analogue Terrestrial Television

Pay TV take-up (% of HHs)

100,0 90,0 80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0
UK Italy Spain France Germany Sweden Finland Denmark Netherlands
Source: MAVISE database; Ofcom ICMR 2010; IDATE TV 2010

100,0 83,9 68,9 55,0 36,0 26,7 62,2 68,2 55,9

Pay TV

Abbreviations: Pay TV subscription based television

In order to stay relevant and compete with other TV platforms, all players have been making transition to digital and are delivering new services. According to RRC06 in Geneva, all countries in Europe have to switch over to DVB-T by 2015 year. Some countries already have made this happen and now are all digital.
DTV take-up (% of HHs) 100,0 80,0 60,0 40,0 20,0 0,0
UK Italy Spain France Germany Sweden Finland Denmark Netherlands

91,0

84,1

93,5

85,8 58,2

100,0

100,0 65,2 60,8

DTV

Abbreviations: RRC Regional Radio Conference DVB-T Digital Video Broadcasting Terrestrial DTV Digital Television

With advent of digital technologies, companies have been able to launch new services and increase their revenues. Along with traditional business model subscription to linear SD channels new revenue streams have been emerged:

HDTV DVR PPV VoD and others OTT

Facts and figures: People are today spending up to 35% of their leisure time on watching content 93% still watch traditional broadcast TV every week More than 70 % are time-shifting on a weekly basis More than 50% are using internet based on demand TV/video every week In order to render those services and ensure their high penetration, companies need horizontal market of capable devices like new TV sets and TV receivers.
Source: Ericssons TV Consumer Insights 2010 report

Abbreviations: HDTV - High Definition Television DVR Digital Video Recorder PPV Pay Per View VoD Video on Demand OTT Over the top Television

There are two main incarnations of receivers: STB external tuner iDTV - embedded tuner STBs are mainly sold by Pay TV operators in order to differentiate their offerings with a branded STB in distribution chains. Moreover, consumers have been forced to buy STBs since so far it hasnt been possible to see Pay TV operators encrypted content without their proprietary STB. However, at present CI and CI+ are built-in in iDTV and customers are able to watch even encrypted channels without STB, just by means of insertion of CIM in CI interface. Since Pay TV market accounts for at average 62 % of HHs there is huge market for both STBs and CIMs.
iDTV STB CIM

Abbreviations: STB Set Top Box iDTV - integrated Digital Television Set CI- Common Interface CIM Common Interface Module