Turk Telekom Group announced 2016 year end financial results. You can see them at this link. Regarding the interest of this blog, let’s have a look to the Tivibu figures.
According to the regulatory body’s official figures, as of Q3 of 2016, Tivibu has a total of 589K subscribers. (428K IPTV customers and 161K DTH customers. )
TT announced a total of 677 subscribers at the end of Q4 2016. We don’t have yet the split of this number but most probably the majority of the net additions comes from satellite domain.
Tivibu customer base was kind of stucked before the launch of satelllite service at the Q3 of 2015. Since then Tivibu gained a momentum and has reached more than 2 million subs including the OTT customers. DTH service allowed TT to provide the DTH service to any household with a satellite dish. Satellite is the most common delivery method of Digital TV services in Turkey.
You may already know my dear friend Özgur Coşar. He is the owner of the website http://tvtechtr.blogspot.com.tr where he writes on a variety of topics on Turkish TV&Radio market. I strongly recommend you to have an eye on his website. Past week he’d asked me to make an e-interview and came up with a number of questions. Following that I wrote down my personal view in return and Ozgur then published it in his blog. Herebelow you can find the copy of the interview:
It is my pleasure to introduce you Mr. Uygar BOYNUDELİK. He is a friend of mine who is working in the media business in Turkey.
1. Dear Mr. Boynudelik, let me start with a classical question. Can you please introduce yourself for my readers.
Dear Özgür, let me first start by thanking you for regularly writing blog posts and being so sincere and transparent and open-hearted as opposed to the general positioning in the industry. Frankly, I’m a fan of yours, truly 🙂 Anyway, I can simply call myself an engineer who is quite interested in TV technologies. I’m really enjoying reading, writing, researching about it. This is what I do for a living (I’m in charge of STB product management in Turkcell) and also my beloved hobby. I keep writing on www.uygarboynudelik.com
in Turkish and on www.turkishtvmarket.info
in English since many years. I encourage your readers to have a look my web sites, at the end we’re living in a small industry 🙂
2. When we look at the pay TV business in Europe we see that majority of the population is subscribed to one of the offers. However, in Turkey, payTV has just 35 % market share. According to you what is the main difference between the markets?
Let’s me first start with a quick summary of the Pay-TV market in Turkey. Based on the latest report by BTK (regulatory body in Turkey) the Pay-TV subscribers are categorized as follows:
- Digiturk: 2,79 mio
- D-Smart: 931K
- Filbox: 29K
- Tivibu uydu: 116K
- TTNet: 350K
- Turkcell TV+: 268K
In total, the number of Pay-TV subs are 5,6 million. Actually there are households with more than 1 subscription. Anyway for the sake of simplicity let’s consider there are around 20 million households, then market penetration is calculated as 28 percent. This is simply the ratio of households with Pay-TV subscription. There are certainly homes with OTT services only such as Netflix, Apple TV etc. Nevertheless, from my perspective the Pay-TV rollout should be calculated with this methodology. After this relatively long introduction, coming back to your question my short answer will be the main difference about the market maturity is simply the average income level of the population. If you compare income per capita in Western Europe to Turkey you’ll notice that income per capita is roughly four times bigger in Europe. I see the gap between average income level as the main reason. Secondly, the high level of piracy is another reason, it’s quite difficult to sell content in Turkey while there are tons of free-of-charge, good quality content on the internet. Thirdly, the negative experience people had with various operators are another barrier for the Pay-TV market to grow. People had suffered a lot due to long-lasting and tiring cancellation processes, miscalculated or miscommunicated surprising bills, not best-in-class customer care cycles etc. All these stuff somehow caused people to try to stay away from 24-hours commitment type of Pay-TV offers.
3. Cable, satellite & terrestrial are used nearly 30 % each for TV reception in Europe. As you well know, in Turkey, TV reception is mainly depended on satellite. What are the results of this situation?
That is a very good point Özgur. I think Turkey is kind of unique with this split. If you don’t mind I’d like to share first my two cents about the root-cause of this uniqueness, later on I’ll come back to the consequences. Historically terrestrial broadcasting has been a real mass in Turkey. The government failed to regulate the licenses and broadcasters with the political power or financial strength managed to build their own towers and broadcast their live TV channels. Considering cable space, this medium has been and still is under control of Turksat -a state-owned company- for many years and they’ve lacked to make the right level of investment to expand their footprint. Even today, cable service is only available on limited areas. On the other hand, satellite installation has been increasing constant since 15-20 years in Turkey. As the satellite dish installation coupled with ‘in China made’ cheap satellite receivers become more and more widely penetrated broadcasters started to invest to have free-to-air channels on Turksat satellite even with poor video quality. The main business model for the broadcasters was to have a free-to-air channel on air, to have the possibility to reach millions of people and try to get any possible level of rating and get the interest from advertisers. Alternatively there are a variety of tele-sales channels that are selling remarkably interesting stuff (things to increase sexual power, things supposedly heal your diseases etc.) and dating platforms. Also from time to time, we hear about lawsuits of the people who one way or another fooled by some of these channels. Today, there are almost 500 FTA channels in Turksat. I think this is not typical. Some of these channels are local, some of them are poor video quality. Coming back to the consequences, this disproportionate balance between the alternative mediums (terrestrial, satellite, cable, IP) resulted in almost to chance for Digital Terrestrial adaptation in the market which is already too much delayed. The content quality of the Live TV channels is significantly biased towards rating. The producers are focused on not producing content with high quality but content that could be appealing for the majority of the people thus bringing better ad revenue. The majority of the programs during daytime is either about matching man and woman willing to marry or Big brother type of programs with a lot of aggression. I think digital terrestrial television is dead at birth.
Many thanks for your answers & time.
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. ( firstname.lastname@example.org )
Please note that this is just a draft agenda. I’m totally flexible. It can be adjusted based on your needs.
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.
RTUK is the regulatory body in Turkey in charge of Radio and TV Broadcasting. According to the study conducted by RTUK in 2012, the breakdown of household composition in terms of TV reception in Turkey is as follows:
Turkey is one of the countries where the people watch TV the most. Based on the study of RTUK ( regulatory body for TV), an average Turk watches 260 minutes (4 hours 20 minutes) TV every single day. You can have a look to the study here.
Turkey is the 8th country in terms of average TV watching time among 55 countries based on the study of AGB Nielsen.
Considering the strong TV engagement, in this post I’ll try to answer questions like “what are the means of receiving TV?”, “which TV-platforms are used the most?”, “which percentage of the households pay for TV content?”, “what is the deployment of Smart-TV’s?”, “what are the basic TV viewing habits?”, “which percentage of the households is equipped with the right hardware to watch HD content?”.