1. Jean-Philippe HAAG
Senior Industry Advisor
Telecoms / Media
DigiWorld Summit 2013
Video Cord-Cutting
November 20th 2013, Montpellier

2. Europe : Diverse Video landscapes
 Fragmented markets
 Diverse TV and telecoms markets
• Cable / Telecoms / Satellite, Pay TV / Free TV
SG estimates
 Digital Video still in infancy
• Development : 31 M Netflix subscribers in the USA, 5 M in Europe
• Market structure : 75 VOD (would be) providers in France
Idate 2013 – Video Cord Cutting
Nov. 20th, 2013 |
P.2

3. Cable cord-cutting
 Not new : e.g. Netherlands, Sweden.
 Essentially Basic TV cord-cutting. Pay TV still growing so far
 Little impact yet. What matters currently is Cable vs. Telecoms competition
 Broadband and Telephony contribute more to revenues and free cash flow
than TV
UPC Western
Europe
 Possible mitigations for Cable / Telecom operators : Co-marketing of OTT
offers, QoS / CDN, Broadband volume tiers…
Idate 2013 – Video Cord Cutting
Nov. 20th, 2013 |
P.3

4. OTT : No silver bullet
+ Reach
? Streaming / CDN costs : material
= Content costs
= Marketing / subscribers acquisition costs
+ RD costs – unlike traditionnal Media, digital Media are RD intensive
 Low price  Low Costs  Need for operations excellence
Idate 2013 – Video Cord Cutting
Nov. 20th, 2013 |
P.4