Network Insight Seminar

Interactive TV

Session 1 – Planning for the Future in light of trends/expereince

Mark Hughes

Partner, Digital TV and Broadband

Ph. 02 9005 5565/0413 809 088

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Driving Forces for DTV

There are four driving forces that are propelling the growth of digital TV.

Driving ForcesCompetition

Competition

Regulation

Regulation

Custom

er Needs

Custom

er Needs

Technology &

Convergence

Technology &

Convergence

Grab for premium content

Competitive digital products/ services (DBS,CATV,DTT, internet, DVD, games)

Telcos expanding into new markets (VDSL, ADSL)

Consolidation to achieve economies of scale

Intensity of Competition

Increasing customer buying power

More channel access, high quality images, and better customer service

Globalization of business

Key Customer NeedsInteractive TV Proposition

New products & services (e.g. VOD, TV-mail)

Greater range of content (broadcast & interactive)

[Increase revenues by] Continuously delivering new products/services

Drivers of Interactive TV

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Business Drivers – Benefits and Considerations

Interactive TV services are not a guarantee of instant profit, but not catching the trend and being a market leader can lead to competitors providing more compelling options to consumers.

• Market receptivity to interactive TV services

• Consumer behaviour

• How to reduce set-top box costs?

• Content Management

• Overall increase in business complexity

• Potential new skills and organisational entities

• Technological complexity

• Consumer concerns

• Increase and retain subscribers

• Increase and retain ad revenues

• Penetration of internet services over TV

• Increase revenue sources

Benefits of Interactive TV

Considerations for interactive TV plans (not an exhaustive list!!)

Drivers of Interactive TV

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Lessons for Australia

The importance of effective marketing

A broad-based business case

• Interactive TV is just one channel; consider the wider play of broadband internet, wireless and through-the-ether channels

• The Asian marketplace presents opportunities

Collaboration is a key capability as means of managing cost and complexity

• You need content, not just technology

• You need technology to deliver the enhanced content

• Pick the right vendors!

• You need to be able to manage all of the new content and technology effectively to avoid an explosion in costs