The difficulties for techno people in Turkish TV Subscription Market

Tivibu just announced that number of Tivibu Home subscribers has been arrived to “remarkable 1 million” milestone.

 

 

 

 

 

The underlying technology of Tivibu Home is twofold:

  • IPTV : The service has been launched back in 2011. As of Q2 of 2017, there are around 545K  Tivibu IPTV customers.
  • DTH: The satellite service that is marketed as “Tivibu Uydu” has been introduced in Q2 of 2015 following the acquisition of Champions League and UEFA digital rights. The remaing half of the ~1 million subscibers are belonging to this segment.

What I’ve done is I’ve extracted Tivibu’s number of subs and ARPU data along the last 15 quartersfrom this sheet published by TT and put into the following graph.

Okumaya devam et The difficulties for techno people in Turkish TV Subscription Market

Tivibu continues its growth trend.

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.

uygarboynudelik.com’da 2016’in öne çıkan yazıları

Bir yılı daha deviriyoruz. Önceki senelerde yaptığım gibi bu yil sonunda da 2016 yılında blogumda en çok ilgili çeken yazıları bir liste haline getirdim, aşağıda görebilirsiniz. Daha da geriye gidip flashback yaşamak isterseniz 2014 ve 2015 yılının öne çıkan başlıkları şöyle oldu:

Not: Oldukça heyecanlı ve çekişmeli geçmesini umduğum naklen yayın ihalesi pek de beklemediğim şekilde sonlanınca sonuçla ilgili yazı yazmayı atlamışım. Kronolojik akışın bütünsel olması için sonuç ile ilgili haberin bağlantsını ekledim.

Okumaya devam et uygarboynudelik.com’da 2016’in öne çıkan yazıları

Netflix Turkey Launch Aftermath

Netflix has launched its service in Turkey together with localized UI and dubbing/subtitle support in 21th of September.  Netflix CEO Reed Hastings was himself also present at the launch event. Webrazzi, a local techno portal has made an interview with him, you can watch it here.

Together with this launch the importance of localisation has been validated to be key one more time. As a matter of fact, Netflix is accessible from Turkey since January 2016 just like the rest of the world. Nevertheless, the ranking of the download of Netflix app has been decreased to more than 500th row around the beg of the year. Then, on Sept, the UI of Netflix has become available also in Turkish, 80% of the catalog has been Turkish subtitled if not dubbed, Finally the cost of service has slightly decreased and the currency of payment has been changed to Turkish Lira from Euro. Following these 3 major changes, the iPad app download ranking has boosted from 500+ to top 50 as seen on the graph below.

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On the other hand, one of the most debated topics was how widely is Netflix content available in Turkey. Let’s have a look details of this. On this link, one can see how much of percentage of the Netflix content in USA is available on various geographies of the world -while keeping content in USA as 100%.- Based on this source, one can access to 25% of the Netflix content in Turkey on TV shows space, while 10,65% of the movies content. The same ratios are around 50% in Ireland 40% in Finland and 30% in Germany. Netflix made a very sisimilarocal launch in Poland around the same time in September. In Poland, more or less the same level of content is available like Turkey.

In short, it’s a fact that Netflix Turkey could not offer the same level of content depth as Netflix USA. But still it’s not far if compared to the most of the countries in Europe. Considering, it’s simply a matter of content rights clearance I don’t see this as a blocker issue as this is core competence of Netflix. If the customer base in Turkey is growing fast, I have no doubt Netflix will continue investing here and making more more content available to Turkish audiences.

BREAKING: New tender for Turkish Football rights is on 25th of November

Link in Turkish

Yesterday, the president of Turkish Football Federation(TFF) announced that the new tender for the content rights of Turkish Football League will be issued on 25 November 2016.  

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The RFQ specifications will be announced around the end of this month. As of today, 5 local and 1 European company has completed their application to participate to the tender. The local ones are probablyTurkcell, Digiturk, D-Smart, Turk Telekom and Vodafone. The validity for the new tender will be probably 4+1 years starting from 2017-2018 football season.

The federation is expecting the tender to be finalized around 600 million USD per year. The legacy content owner Digiturk has acquired the rights at the expense of 321 million USD per year (424 million USD including taxes, federation fee and organization fee) in 2010. Demiroren stated that they decided to decrease TFF’s fee from 12 percent to 4 percent. It’s unclear that the declared expected quotation of 600 million USD is including all the costs.

It’s been emphasized that TFF is cooperating with consultants who actively worked on Premier Leauge’s tender. Obviously, TFF will target to maximize the revenue. Hence, it will be no surprise if they design the tender similiar to Premier League case.

e-Interview with Mr. Uygar BOYNUDELİK

Özgür Coşar ismini zaten biliyor olabilirsiniz. Kendisi Turkiye TV/Radyo sektoru hakkinda duzenli yazilar yazan, arastirmaci tarafi cok guclu, ince bir mizah anlasiyi olan, en aktif bloggerlardan biridir. http://sadeceozgur.blogspot.com.tr ve  http://tvtechtr.blogspot.com.tr bloglarinin sahibidir. Gectigimiz gunlerde ingilizce blogu icin benden e-interview talebinde bulundu ve birkaç soru yöneltti. Ben de dilim döndüğü kadar kendi kisisel bakis acimi paylastim.Özgür’un blog sayfasinda da yayinladigi, benim icin de fikirlerimi konsolide etmemde faydali olmus olan bu sohbeti asagiya kopyaliyorum.

tvtechtr

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:
DTH:
  • Digiturk: 2,79 mio
  • D-Smart:  931K
  • Filbox: 29K
  • Tivibu uydu: 116K
Cable:
  • Turksat Cable: 1,16 mio
IPTV:
  • 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. 

 

A total of 8 Euro 2016 games will be broadcasted in 4K Ultra HD Resolution on TRT 4K

2016 UEFA European Championshipis is coming in just 2 weeks. Nowaydays 4K Ultra HD broadcasting of the games is one of the hot discussions in the industry. TRT 4K which is the national broadcaster TRT’s channel in 4K resolution is actually Live since February 2015. (I had an article about it here.) TRT 4K declared that they will broadcast 8 games ( opening match, quarter finals, semi-finals, final game) in 4K resolution unencrypted. (Current xpdr: 12123 MHz, Symbol rate 15000 , H) Turkey National Team will also compete in Group D.

Well, who will have the opportunity the watch the game in 4K resolution? Simply the people with 4K TV set. Majority of the new generation 4K TV sets have embedded satellite receiver which will allow them to tune to TRT 4K transponder’s frequency and enjoy the details of the selected games. There will be probably Pay- TV operators who will start offering 4K Ultra HD Live TV and VOD titles during the rest of the year. As of today, there is no commercial 4K service in Turkey, yet.

Turkcell TV+ hizli buyumesine devam ediyor

Bundan yaklasik 1,5 yil kadar once Turkcell TV+ servisinin lansmanini yapmistik.

Geride biraktigimiz zamanda servisin yayilimi, ulastigi kitle sayisi gercekten tum beklentilerin uzerinde oldu. Bu elbette su anda artik aramizda olmayan arkadaslarimizla beraber cok buyuk bir ekibin ortak basarisi. Ifade etmeye calistigim basariyi somutlastirmak icin Turkcell Yatirimci Iliskileri Q4 2015 sonuclari sunumundan iki gorseli sizlerle paylasmak istiyorum:

Screen Shot 2016-03-20 at 21.50.22Soldaki grafikte sol altta Turkcell TV+ abone sayisinin 2015 yili boyunca artis trendi gozukuyor. 18 Subat 2016 itibariyle 600K’yi gecen abone sayisinin sadece IPTV degil ayni zamanda mobil ve web abonelerini de kapsadigini belirtmekte fayda var. Rakamlardan anlasilacagi gibi ozellikle geride biraktigimiz yilin son ceyreginde onemli artis kaydedilmis. Bundan sektorde ‘Back to school’ dedigimiz yazin bitip insanlarin sehirlere dondugu donemin etkisi asikar. Peki bu abone tabaninda IPTV abonesi orani nasil? Bunu da asagidaki gorselde 224K olarak gorebilirsiniz:

Screen Shot 2016-03-20 at 21.51.00

 

 

 

 

 

 

 

2015 yili sonu itibariyle 558K aktif Turkcell TV+ abonesinin %40’i IPTV abonesi. Diger bir ifade ile 10 abonenin 4’unun evinde Turkcell TV+ IPTV alicisi mevcut ve bu kitle servisi buyuk TV ekraninda kullanan, OTT abonelerine gore daha uzun sure Turkcell TV+ deneyimi yasayan, sadik musteri tabani. Ticari olarak lansmanin yapildigi Kasim 2014’ten 2015 sonuna kadar 224 bin haneye girip, kurulum yapilmis olmasi sektordeki cogu meslekdasimin hemfikir olabilecegi gibi emegi gecen herkes icin buyuk gurur kaynagi.

 

Screen Shot 2016-03-20 at 22.36.05

 

Sunumda ifade edildigi uzere Turkcell Superonline fiber internetin toplam 900K abonesi var. Bu cercevede “uclu oyun” abone orani yaklasik %25 civarinda. Bu oranin onumuzdeki yillarda artmasi ve ideal olarak %100’lere yaklasmasi hedefleyecegiz. Kaldi ki ‘triple-play‘ oyunu sadece bizim degil kuresel olarak telcolarin paylastigi ortak bir strateji.

Bu sayede hem churn orani dusurulup hem de ARPU arttirilabiliyor. Uclu oyun kiyasiya yasanan rekabet ortaminda disinda kalabileceginiz bir oyun degil. Zaten Turkiye’de Vodafone disinda TV servisi vermeyen bir telco da yok. (TT, Turkcell ve Turksat sabit internet ve sese ek olarak TV servisi sagliyor.) Oyle zannediyorum ki Vodafone’un da makul bir zamanda bu oyuna dahil olmasi kimse icin surpriz olmayacaktir.