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.
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.
Turk Telekom Group has just announced results of Q2 of 2015. The page below is just a snaphot from the 2105 Q2 Investor Presentation.
Clearly, acquisition of UEFA Champions & Europa Leagues content rights is worth to mention. Please see the following 2 of my earlier posts about this topic.
It’s also interesting to see that the number of Tivibu Home (IPTV) Subscribers is in decline over the past 3 quarters.
Earlier on this blog, I wrote a blog post that was stating that Tivibu had acquired content rights of Formula 1 sports. Indeed, Tivibu had broadcasted the first 4 racing of the season.
Nevertheless, just this week it has been announced that Digiturk but not Tivibu has become the official broadcaster of Formula 1 racing this season. It seems the negotiations going on between Saran Group (local owner of the rights) and the interested parties has arrived to a new conclusion. The question would be then if the acquisition rumour of Digiturk by Qatar Bein Media Group has anything to do with this ? Did we already start seeing the consequences of the acquisition?
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;
Turk Telekom made a press release at GSMA in Barcelona. In this announcement TT CEO is mainly talking about 4G strategy of TT. In this speech he also stressed a point which is really interesting regarding the scope of turkishtvmarket.info. Basically, he told that;
TT will reshape TV broadcast industry in Turkey. We simply target to reach each and every household in Turkey and let the 20 million household to benefit from the Tivibu service. Any kind of content is extremely valuable for us. We very well aware of the fact that Turkey Football League matters a lot for Turkish audiences. We’ll be putting ambitious efforts on this when the right time arrives.
As posted earlier on turkishtvmarket.info, Digiturk still holds and will continue to own broadcasting rights for additional 2 years (2015-16 and 2016-2017) with one condition: Digiturk will sub-license or transfer the rights to competitive companies and companies with alternative broadcasting means at a ‘reasonable’ market conditions.
Anyhow, there will be a new tender probably at the end of 2016 or beg of 2017 and apparently that one will be the new battlefield.
TT official press release is here.
Until recently, D-Smart’s OTT service ‘D-Smart Blu’ was offered in a variety of packages with different content offering and pricing. Existing D-Smart customers had advantageous prices while non-D-Smart user had relatively expensive price offers.
D-Smart had completely changed the package structure a few weeks back. Now, there is only one single package and it just costs 9 TRY. This price tag is much more aggressive then the earlier price level. Besides, 9 TL is the flat-fee (no commitment) for both existing D-Smart subscribers and non-D-Smart users. This package includes 20 Live-TV channels, hundreds of VOD titles, premium sports content (La Liga, NBA TV, Moto GP. F1) as well as adult content.
D-Smart Blu is available via PC, iOS and Android devices.
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 🙂