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.
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:DTH:
- Digiturk: 2,79 mio
- D-Smart: 931K
- Filbox: 29K
- Tivibu uydu: 116KCable:
- Turksat Cable: 1,16 mioIPTV:
- TTNet: 350K
- Turkcell TV+: 268KIn 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.
Herebelow you will see the post on http://www.turkish-football.com/ on latest news about the sales of Digiturk to beIN Media Group.
Qatari media group beIN have completed the takeover of Turkish Super Lig broadcaster Digiturk on Thursday, after a 3-year audit by the Savings Deposit Insurance Fund of Turkey (TMSF)
The chief executive officer of Digitürk, Ümit Önal, revealed that Qatar will make 60 percent of the total payment in 2016 and pay the balance in 2017.
The exact fee of the takeover has not yet been disclosed but a report by Bloomberg last year claimed that it would fetch a reported $1.5 billion.
Digitürk has more than 3.5 million customers and holds the rights to broadcast Turkish Football League matches until the 2016-2017 season.
The company has broadcast Turkish Süper Lig games via its affiliated sports channel Lig TV since 2001.
The league’s broadcasting value has seen a 40 fold rise in 16 years and Digiturk has a $560 million-a-year deal for exclusive rights to the Super Lig.
The Turkish league viewing rights are currently the sixth most valuable in Europe and rapidly catching up with the continents elite.
Digiturk has been pushing for overseas coverage of the Turkish League and recently struck a two-year deal with MP & Silva to distribute a weekly highlights package for the Turkish Super League.
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.
(Açılış – 4 Çeyrek Final – 2 Yarı Final – Final) pic.twitter.com/2eui0Wxi5w
— TRT 4K (@TRT4K) 2 May 2016
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.
A few weeks ago Turkcell announced the results for the year 2015. You can have a look to the presentation here.
It is possible to get key figures about Turkcell’s popular TV service Turkcell TV at pages 11 and 12 of the presentation.
Briefly, the service has reached to a total of 588K subs within almost 1,5 years.
Out of this 600K base, the number of IPTV homes are 224K. This has been achieved in 1,5 years which indicates around 40K net addition per quarter. If you look to the trend and check how quickly the number of subs is increasing it’s really impressive.
Having a look to the customer gain in TV market in the past year, Digiturk, D-Smart and Teledunya are all steady with not much changing number of customers. On the other hand, installed base of Tivibu and Turkcell TV+ are on the rise.
Actually, the rise on Tivibu side is due to the new satellite platform. IPTV domain of Tivibu is kind of stucked lately.
Turkcell Superonline has 900K fiber internet customers. Currrently, the ratio of households receiving triple-services is around 25 percent. It’s quite obvious that Turkcell’s main focus will be to increase this ratio over the coming years and eventually to provide tripleplays services to the complete base. Apperantly future is bright for Turkcell. Let’s keep monitoring the progress and how sustainable is this ramp-up.
Quite some time ago, I’ve written a post about the Vodafone’s new Internet service Vodafone SuperNet.
Lately, Vodafone Turkey announced a new 3-play service that is basically called Vodafone Televizyonlu SuperNet (Vodafone’s Supernet together with TV). As a matter of fact, the TV service is actually provided by another company called Filbox. (please revisit my earlier post about Filbox here)
With this recent announcement of Vodafone all the top 3 telco’s in Turkey (Turk Telekom, Turkcell & Vodafone) are now providing 3-play services. Costomers have the option to enjoy receiving all the major services from one single operator and getting charged by a single invoice. Basically, this is the new trend all over the world. Operators are playing and they are aware of the fact that they need to play well in order to survive. You can check this link for further details about the campaign.
It’s been announced at twitter by Hikmet Kocaman who is working in TRT (National TV Broadcaster) that the UEFA League game between Fenerbahce and Ajax will be broadcasted live in 4K resolution at TRT 4K channel. This will be the first live 4K broadcast in Turkey. TRT 4K channel is available in test phase in Turksat satellite since Feb 2015 at frequency 12123, horizontal with symbol rate 15000.
22 Ekim’de oynanacak olan Fenerbahçe-Ajax UEFA Avrupa ligi maçı Türkiye ve Avrupa’da bir ilk olarak TRT4K kanalından canlı yayınlanacaktır.
— Hikmet KOCAMAN (@HikmetKOCAMAN1) October 1, 2015
As a matter of fact, the sales of 4K TV sets are clearly increasing in Turkey like the rest of the world. Since the start of the year around 100K 4K TVs have been sold on the market but only a minorty of them have embedded sateliite tuner. Besides, as of today there is no commercial offering of 4K services by any of Pay-TV operators. Considering all these, unfortunately there will only a limited number of households those will have the opportunity to benefit of this. But still it’s strong indicator that 4K service will be presents in 2016.
In Turkey, there are basically 3 big telecommunications company which are in market share order:
- Turkcell Turkey
- Turk Telekom
Turkcell strength is 35 million+ mobile subs and 1 million+ broadband subs. TT is the incumbent telco whose cash cow is 10 million+ PSTN subs coupled with 6 million+ broadband internet subs. Among the big 3, Vodafone seems to be the only telco with mobile focus only. Nevertheless, this is changing nowadays.
Vodafone has just launched its fixed broadband service called as Vodafone Supernet.
Considering the infrastucture, TT group as being the 175 years old incumbent player owns the nationwide copper lines that has been used to provide DSL service. Starting from 2012, they ingested a lot of money for fiber infrastructure.
Turkcell’s subsidary Turkcell Superonline on the other hand has its own fiber infrastrcute with almost 800K subs and 2.2 homepass. Turkcell Superonline is also providing DSL service to around half a million households through TT group backbone.
Having said that, Vodafone group clearly decided to be part of the game and to offer not only mobile services but also fixed broadband service to the market.
By benefiting TT group infrastructure, Vodafone is now offering both DSL and/or fiber internet service depending on the area you are living.
The prices are more or less around the competition. Clearly the idea is to offer a complete set of package to keep the installed base and reduce churn as well as inceasing the ARPU.
But still Vodafone is missing TV service. Turkcell Group had Turkcell TV+ whereas TT has Tivibu as the TV offer. It wouldn’t a surprise for me if Vodafone is acquiring one of the legacy TV service providers ( i.e. D-Smart, Turksat Teledunya) in Turkey. Obviosly, it’s almost inevitable that a telco should be providing a TV service on top of the exsiting services like mobile internet, broadband internet, voice etc. in order to keep its competence.