The challenge of

one-to-one mediaIDATE Insight

Gilles FONTAINE

Deputy CEO, IDATE

20 November 2014

TV & Video facing Mobility

What does mobility have to do with TV?

Mobility as in…

new devices

Mobility as in…

individual consumers

Mobility as in…

network competition

and cooperation

TV then (and now…) The impacts of mobility

1

2

3

Group pastime

Dedicated networks

TV centric

Tablets, smartphones: More than just companion screens

1. The screens of choice for individual viewing

2. Advanced remote controls

3. Connected TV boxes

4. TV program interfaces

1. Mobility as in… new devices1

The end of one size fits all

2. Mobility as in…individual consumers2

> 1/3 of households have only one person

> US households watch 17 out of 189

available channels

> Netflix introduces pay per user

> US cable operators testing limited basic

package + HBOIndivual subscribers

Targeted viewers

The

opportunity

The competion for terrestrial wireless distribution

3. Mobility as…network competition and cooperation3

The competitionscenario

DTT drives hybrid and TV

everywhere

LTE drives broadcast

and triple play

The cooperationscenario

Hybrid DTT-LTE

transmission systems

The convergence scenario

A unified broadcast /

unicast network

Matching the power of

media with the accuracy

of the Internet

1. Making TV ratings in line with

standards of Web analytics

2. Rebuilding the community

around on-demand viewing

3. Creating seamless advertising

from TV commercials and banners

for e-commerce

4. Changing from a market of

households to a market of

individuals

Solving the “one-to-one media” oxymoron

The three TV/video market development scenarios applied to the US (billion €)

Source: IDATE, Future TV 2025, July 2014

10

15

20

2014e '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25

Business as usual Commoditization The new golden age

New transactional products

(SVOD, EST) bolster the market

Linear TV advertising provides targeting tools

and video becomes the main beneficiary of

online ads

Piracy continues, free legal products

cannibalise the paid market

Products gradually lose their

relevance

TV advertising finds itself on the losing side

of advertisers’ spending choices