D-Smart’s Blu service is rebranded as BluTV powered by a new logo and new website design.
Now, the service costs 6.9 TRY / month. There are a total of 30 Live TV channels around half of which are basically premium channels such as NBA TV, Nat Geo, Eurosport, BBC.
In addition to Live TV channels, there is also a wide variety of VOD titles from several genres.
As a matter of fact, this simply seems yet another OTT service. So far, in Turkey OTT TV business model is yet not correctly formulized. Around 2 years ago, I’ve posted an article about the OTT players in Turkey. (link) I think none of them could achieve to build a profitable business model since then.
The real challenge for an OTT TV service is first to overcome the barrier of collecting money. if this service is an extension of an Service Provider’s existing bill, things are much more straightforward. For instance, if any OTT service is provided by an ISP or mobile operator, chances are the user will be OK to get charged an extra by the monthly bill she/he is already paying.
Nevertheless, if the service is an all-access type of service such as Netflix then the OTT player have to build an payment channel with the subscriber. To that end, the provider shall either ask the credit card info of the user or ask for mobile payment. In any case, it’s quite discouraging to fill out all the payment data. That’s why I had difficulties to feel optimistic about the OTT TV services in Turkey. I think either Tier-1 operators OTT TV service or world-leader like Netflix could compete in this industry.
Turkish Regulatory Body in Telecommunications Industry (BTK) has just announced the market figures for Q4 of 2014. You can download the complete report here. Let 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.
- 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;
Turkish TV Market Training Course (In a Nutshell)
Course Method :
The course consists of a 2 days of face to face (also potentially online) teaching designed as 4 different modules. Each module focuses on a different aspect of Turkish TV Market.
This training course is mainly focused on Turkish TV Market. The audiences will have an overall understanding of digital TV technologies, the changing behaviour of Turkish TV audiences, brand-new services delivered via internet and how the impact of broadband will transform Turkish media industry as a whole. The participants are expected to understand and practice basics of digital television platforms in Turkey, to get familiar about new generation TV services, applications & technologies from broadcaster and consumer perspective.
Who should attend:
This course is appropriate for television professionals (including equipment manufacturers, content providers, technologists, and service providers), product developers, second screen application developers, user experience professionals, internet video technologists, video product managers and analysts who have an interest in Turkish TV market.
- Day 1 :
- Module 1: TV Fundamentals
- Value Chain > Content Acquisition/Ingestion. Transcoding, Delivery via Satellite/Cable/IP, Customer promises devices ( satellite dish routers, STBs, TV sets)
- Video formats > Analog, SD, HD, 3D, 4K, 8K
- Video compression > MPEG-2, H.264, H.265 etc.
- Set-top-box > Satellite/Cable/Terrestrial/IPTV. Block Diagram, Components, Services
- Module 2: Brief overview of Turkish TV Market
- Digital TV Platforms
- TV Reception breakdown
- Competition, Market Shares, Service Offers
- Technology & Products
- DTT Switchover (Analog Switch off)
- Day 2 :
- Module 3: OTT Market in Turkey
- Major OTT Players
- Internet Service Providers
- Broadband Average Speed
- Do’s & Don’ts
- Module 4: Content Business in Turkey
- Content offerings of digital platforms
- Content rights (i.e. Sports)
- Market specific conditions
- Latest developments from content provider’s perspective
Please drop me an email to further discuss details of the course and reserve your seat. ( email@example.com )
Please note that this is just a draft agenda. I’m totally flexible. It can be adjusted based on your needs.
It’s been almost 1 year since turkishtvmarket.info has been launched. More than 100 people from all over the world subscribed to my newsletter. It’s really great to have such an interest on this particular area. Herebelow you will find the most popular posts in 2014.
Stay tuned in 2015 for getting a global picture of Turkish TV Market 🙂
It’s been estimated that there are more than 10 mio Pay-TV subscribers out of 18 mio households in Turkey. The major player of the market are:
- Kablo TV/Teledunya
- Turkcell TV+
In addition to these, a new player has just arrived : Filbox.
Filbox joined the competition with a different business model. Oflaz group, best known with SinemaTV movie channels is the sole shareholder of Filbox platform. Filbox provides TV service without a need to STB investment or installation operation. This has been accomplished thanks to CAM module technology.
The greatest cost item of global Pay-TV operators is STB cost. Following STB cost comes installation related costs. Oflaz tried to differentiate her service in this respect. Filbox customers will be still able to use their equipments (DVB-S2 and CI, CI+ supporting TV sets and satellite receivers) to receive Filbox channels which have been broadcasted in encrypted format in Turksat 4A satellite. All they need is Filbox CAM module to decrypt Filbox Live channels. Hence, Filbox could avoid STB and installation related costs.
Filbox content offer includes SinemaTV, SinemaTV 2, SinemaTV Aile, SinemaTV 1001, SinemaTV Aşk, SinemaTV Aksiyon movie channels, German entertainment channel RTL, documentary channel Sci Tech TV, English learning channel English Club TV, kids documentary channel Da Vinci Learning, nature documentary channel Viasat History and Viasat Nature and fight channel Fight Box. As a matter of fact, you can surely continue to get hundreds of FTA channels in Turksat with your existing setup.
The retail price for Filbox CAM module is 149 TRY (~52 EUR, 66 $). Once one gets the module and done with the activation, Filbox channels are available for 1 year.
Filbox module can be found at Filbox authorized shops and major e-commerce platforms Hızlıal.com and Hepsidijital.com.
Turkey 2014 Pay-TV Market Report is ready now.
This is by far the most comprehensive and in-depth report on Turkish Pay-TV market.
If you would like to get an electronic copy of this unique report please drop an email to firstname.lastname@example.org for further discussion!
You can see `table of contents` and `executive summary` sections of the report here.
TVYO is one of the most popular OTT services in Turkey. It’s backed up by Dogus Media Group with a strong differentiation: it’s free of charge. TVYO offers catch-up services of popular series and TV shows as well as selected Live TV channels, sports and music content. It’s revenue model is solely based on advertisement. TVYO can be accessed from iPhone, Android & PC.
To get further info about the complete set of OTT players in Turkey please have a look here.
Chromecast support has been just added to TVYO iPhone application. To my best knowledge, this is the first time that a local application in Turkey has integrated Chromecast support. It’s really joyful being able to watch tvyo content on big TV screen in my living room.
Millenicom is one of the alternative internet service providers in Turkey. It provides broadband and voice services with brand name Doping to both residential and corporate customers. It has more than 120K subs. You can get further info about Millenicom here.
Last week Millenicom organized a press conference and launched its brand-new TV service DopingBox.
DopingBox is an Android-based STB. There are various Android based boxes around sold out in retail shops and e-commerce platforms. But this is the first time that an operator is offering Android box. A brave move!
Thanks to the wide variety of apps on Google Play, you can download many multimedia, social and game applications and enjoy on big TV screen. Spotify, youtube, angry birds, twitter, facebook to name a few. Apparently, this is the inherent nicety of Android boxes.
One of the interesting points of the box is wifi connectivity. This will make the installation process clearly much easier. Again, this is the first time that an operator is offering wifi as a standard feature. One of the most challenging aspect of Android boxes is the interaction between end user and applications normally designed for touch screen. DopingBox is trying to overcome this issue with an airmouse remote control.
DopingBox will have VOD content enriched by film&series content providers SinemaTV and Filmbox and TVYO(Dogus Media Group’s OTT service) and its own library. Live TV channels are missing and this is clearly the weakest point of DopingBox.
A few words on the commercial part:
- DopingBox is the result of 2,5 million TRY investment and 2,5 years of efforts.
- The target is to reach 3o percent of Doping customers at the end of 1 year.
- If you are a Doping customer already, you need to pay 19.99 TRY per month (9.99 TRY first 3 months) This includes the service fee and device rental fee.
- If you’ll become a new Doping customer, there is a bundle offer (TV+internet) In this case, you’ll get a discounted price for internet and you need to also pay
- 19.99 TRY per month (for 12 months commitment)
- 14.00 TRY per month (for 24 months commitment)
We see lots of telcos offering TV service on-top of broadband and voice services. Turkey is not an exception. Actually, due to the changing market dynamics offering a TV service is no more an option, it’s a must. The most concrete advantage of this is lower churn and higher stickness. This fact is deserving another post.