In Turkey, there are a number of OTT services. Most of them are owned by Pay-TV operator while there are also a few independent OTT services. To name a few:
- Digiturk Play: Digiturk’s OTT service ( 60+ Live TV channels & hundreds of VOD titles ) Obviously Football League content is the main driver.
- Tivibu Go: Turk Telekom’s OTT service( 100+ Live TV channels & hundreds of VOD titles ) TT group’s main focus is growing the customer base through fixed broadband.
- Turkcell TV+: Turkcell’s OTT service ( 100+ Live TV channels & hundreds of VOD titles ) Turkcell group’s main focus is growing the customer base through mobile broadband thanks to the advanced LTE infrastucture.
- BluTV: D-Smart’s OTT service ( 27 Live TV channels & hundreds of VOD titles ) Dogan Group that owns the D-Smart also owns Kanal D FTA Channel. BluTV is trying to differentiate by the catchup TV content of Kanal D groupwithout ads (the content is in fact available on Kanal D website www,kanald.com.tr with ads) as they own the rights exclusively.
- KabloWebTV: KabloTV’s (formerly Teledunya) OTT service. While all the mentioned services are available to anybody ( i.e. all access) without an existing subscription to the associated service provider, KabloWebTV is only available to Kablo TV customers.
In addition to these operator backed up OTT services, there are also a number of independent OTT services. The most well-known of these is apparently Netflix. Other major OTT services are Filmbox Live (http://www.filmboxlive.com/tr), and Mubi (https://mubi.com)
There is a common point on all of these services. Their business model is based on subscription. They don’t show any ads.
In addition to these services, there was one free service called tvyo (http://www.tvyo.com/) based on ad-revenue. Dogus Media who owns a number of popular FTA Channels such as Star TV, NTV, NTV Spor and Kral TV was behind the service. Lately, Dogus Group has launch a new version of tvyo called as puhutv.(https://puhutv.com/) It’s currenly in beta stage. It’s basically a free of charge service hosting catch-up TV versions of popular TV series of Dogus Group Channels both new ones and old ones as well as old Turkish movies.
Overall puhutv is a new generation version of tvyo that is trying to leverage on Live TV content and generate a significant amount of traffic due to popular series it owns. Once the traffic arrives to a certain level then Dogus Group will generate revenue through ads. Considering the characteristics of Turkish TV audience (fan of 2 hours long TV series, a very high percantage of piracy, low income level etc. ) this ad-based business model seems to have to most possible chance to monetize in OTT domain. Apart from the OTT services of Pay-TV operators , there is no independent OTT provider including Netflix that has been very successfull in Turkish TV Market. We’ll see if the model of puhutv will work.
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. ( 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.
Turkey Basketball League games will be broadcasted by Digiturk and free-to-air sports channel NTV Spor for 3 years starting from 2015-2016 season.
To recap: The split of sports content digital rights in Turkey is as follows:
- Digiturk: Turkish Premier Football League, English Premier Football League, Turkish Airlines Basketball Euroleague, Turkey Beko Basketbol League, Russian League, Brazilian League, Wimbledon and ATP1000 Masters Tennis
- D-Smart: Spanish Premier Football League (La Liga), NBA TV, Formula 1, Motor GP
- Tivibu: UEFA Champions League, UEFA Europe League, France Ligue, Italy Seria A
- Teledunya (Kablo TV): No exclusive content
- Turkcell TV+: No exclusive content
Digiturk was already the official broadcaster since past 6 years. With this new announecement it will continue for another 3 years.
It’s been made public that the contract fee is 12 million Euro / per year. While Digiturk will be broadcasting 2 games per week, the other shareholder NTV Spor will deliver another 2 games every week. Considering the enormous fee paid (321 Million UDS + VAT) for Turkish Premier Football League by Digiturk, 12 million Euro sounds pretty cost effective. Although Digiturk managed to reduce the total cost around by half, it had no more the exclusive rights which might cause customer churn in return.
Akamai has just released Q3 2014 ’state of internet‘ report. (Link)
According to the study, the average connection speed by EMEA country is as shown in the table below.
In Turkey, the average bitrate is 5,5 Mbps with a 35% YoY change. Actually, this is the best figure so far and it will be reasonable to expect it continue to grow. This is really very promising as it will allow OTT-type of services to further increase the penetration rate and fuel the number of the households to which a service-grade OTT service could be delivered.
The main driver to the increasing trend in average connection speed in Turkey was the investment made by Turk Telekom and Turkcell Superonline to fiber infrastructure over the past few years.
Please feel free to get in touch with me to discuss other aspects of a successful OTT model in Turkey.
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 email@example.com for further discussion!
You can see `table of contents` and `executive summary` sections of the report here.