The global overview of Turkish Pay-TV Market as of Q4 2014

Turkish Regulatory Body in Telecommunications Industry (BTK) has just announced the market figures for Q4 of 2014. You can download the complete report hereLet me make a quick summary of the figures of TV space.

  • Number of TTNet IPTV (Tivibu) service has become 289.496 as of Q4 2014. The same number was 286K one year ago as of Q4 2013. There is clearly a slow down there. The increase in number of subs has stopped during past year. Perhaps it’s because of the high churn rate.
  • The number of customers in Turkcell Superonline IPTV (Turkcell TV+) service was 15.270 in Q3 2014. As of Q4 2014, it has reached 60.000. There is big growth here. A customer gain of 45K in just one quarter is clearly a big big step forward.
  • The number of Turksat Kablo TV customers is around the same level since long tiem. It’s a total of 1.176.126 as of 2014, quite steady since a few quarters. The table below is self-explanatory. A government officer tolda that Turksat is one of the state-owned companies which is planned to be privatized within this year. This could be one of the reasons why there is not much happening in Turksat. Nevertheless, the installed base over 1 million is quite interesting. I’m pretty sure that there will be plenty of companies who will get interested in Turksat acquisition. 

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            • Number of subs of Digiturk as of Q4 2014 is 2.942.643. The greatest player of the market is still significantly ahead of the market.
            • D-Smart had a customer base of 1.048.960 in the same timeframe. D-Smart is apparently losing momentum. It has lost major sports content to Tivibu lately.
            • The youngest player of the industry Filbox has just 3125 customers after 2 quarters of the launch. The value prop is selling a CAM module and paying 1 year subscription fee in advance and having access to about 20 premium Live TV channels such as SinemaTV, Da Vinci Learning, English Club TV etc.

If one looks to the global picture, the total number of subs in Turkey is around 5,5 mio as of end of 2014. Considering the number of total households is 18 million, the Pay-TV penetration rate is a bit higher than 30%. As a matter of fact, there is no much progress regarding the penetration rate over the past few years. Actually this is not much surprising because except Turkcell TV+, none of the player could manage to make significant growth over the past years. This rate is still not good enough compared to the European countries. I deeply believe that there is a huge potential for growth in Turkish pay-TV market. The key thing is to formulate the right pricing, value prop and content offering. That’s the challenge the management teams should overcome. Once this has been succeed, the level of 40% penetration is realistically achievable in a few years ahead. 

Last but not least, the updated market share of the Pay-TV players is as follows;

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Average broadband connection speed in Turkey

Akamai has just released Q3 2014 ‘state of internet’ report. (Link)

According to the study, the average connection speed by EMEA country is as shown in the table below.

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In Turkey, the average bitrate is 5,5 Mbps with a 35% YoY change. Actually, this is the best figure so far and it will be reasonable to expect it continue to grow. This is really very promising as it will allow OTT-type of services to further increase the penetration rate and fuel the number of the households to which a service-grade OTT service could be delivered.

The main driver to the increasing trend in average connection speed in Turkey was the investment made by Turk Telekom and Turkcell Superonline to fiber infrastructure over the past few years.

Please feel free to get in touch with me to discuss other aspects of a successful OTT model in Turkey.

iTVF (İstanbul TV Forum and Fair) is coming….

İstanbul TV Forum & Fair will take place in Halic Congress Center, Istanbul in 12 -13 -14 June 2014 for the second time.

Basically, it’s an event where the key components of the content and broadcasting industries gather under one roof, with participation from companies, associations, public institutions, broadcasters and online platforms from all four corners of the world. The event took place with the Main sponsorship of Turksat, Corporate sponsorship of ATV and Supporting sponsorship of Samanyolu Broadcasting Holding with the participation of 53 companies, as 157 brands were represented at iTVF. The event is organized by RATEM (Professional Union of Broadcasting Organisations)

You can find the final report of iTVF 2013 here.

 

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Last year, the first event could not collect many people partly due to the #geziparki protests partly due to the fact that the event is organised for the first time.

This year, iTVF has much higher expectations. Let’s hope that the number of audiences will increase compared to 2013 and everybody will go back home with lots of new connections.

If you need assistance to arrange meetings with local prospects or new contacts just drop an email to info@turkishtvmarket.info.