New Digital Content Opportunities for Network Operators
2019.01.03   |   115 pages   |   Revenue Continuity

Author:
Liam Mimnagh


LinkedIn

Share:

Sign up to receive our latest insights and reports

Sign up

Content services today are dominated by video services in the form of TV, movies, sports and gaming plus music streaming services. 

  • Video already dominates the internet and Sandvine reported that it currently accounts for 58% of current global downstream internet traffic.

There has been some major merger and acquisition activity as the traditional media and the telecom industry restructures to deal with new digital players.  Network operators have adopted one of two strategies or tried to mix both – purchasing content producing assets or partnering with content players from the traditional media as well as new digital content players.

The first approach is very expensive but can guarantee exclusivity.  The partnership model is a less expensive non-exclusive model that incurs less debt and may offer the best return on capital employed.

  • As an example, a tier two operator who previously purchased rights to soccer content has found poor investment returns for its sports proposition in the face of increasingly expensive soccer rights, and is now considering that general entertainment services such as movies and TV series have a much wider appeal and a better chance of influencing the broadband and TV purchase decision.

This report looks at the content propositions of network operators in North America, Europe and selected markets across rest of the world and provides an insight into the strategic approach each operator has taken, before delivering our own analysis of the optimum way forward for network operators looking to retain relevance in a digital world dominated by customer content decisions.

  • The report draws on and describes both the most advanced content offerings available today and also how network operators in price sensitive markets are delivering content services thanks to dramatic falls in data pricing and the use of innovative content delivery methods.

 

Companies: Apple, FAANG, Spotify, Netflix, Amazon, Facebook, Oculus, Quibi, AT&T, Verizon, T-Mobile USA, EE, BT, Vodafone UK, Three UK, Samsung, Google, Alphabet, SnapChat, Movistar Spain, Movistar Columbia, Movistar Ecuador, Movistar Latin America, NOS Portugal, Deutsche Telekom, Orange France, Ooredoo Algeria, True Move Thailand, Claro Brazil, Vivo Brazil, Reliance Jio, Bharti Airtel India, Disney, 21st Century Fox, Sandvine, YouTube, Comcast, Time Warner, HBO, Showtime, Starz, TDC, Telia Company, New Fox, Deezer, Tencent, Tidal, Oath, Zee Entertainment, KaiOS, Zee5,

Countries: USA, UK, Spain, Portugal, Germany, France, Algeria, Thailand, Brazil, India, Latin America, Ecuador, Columbia, South East Asia,

Keywords: BT Sport, Video on Demand, PWA, Mobile TV, IPTV, eSports, Mobile Content Portal, Converged Services, Security Apps, SVoD, postpay tariff bundled content, YouTube Music Premium, ebook, Apple TV, M&A, Google Pixel, KaiOS, Apple Store, Kids Content, eSports SIM pack, MagentaMusik 360, go90, Education Apps, Live TV, MLB Streaming, JioPhone, T-Mobile Tuesdays Loyalty App, Operator App Store, Magenta TV, Fusion TV, Wuntu Loyalty Program, advertising model, Airtel TV, StreamOn, Music, Virtual Reality, Video, Premier League Streaming, prepay tariff bundled content, La Liga, TV Everywhere App, Handset Promotion, Kids App, Jio Cricket Play Along, Amazon Prime Video, Data Pricing, Embibe Education Platform, Tidal Content, YouTube TV, Wynk Music App, VR, Games Content, App Recommendation, Health and Wellness Apps, Content Partnership, Oculus VR, Go Binge, Google Play Store, Audiobook trial, Jio Prime, Magenta Virtual Reality, Content Plays, Haya Service, Content Monetisation, Soccer rights, Airtel’s Content Partners, Satellite TV, TrueID, JOOX Music, JioChat, Short Form Video, iOS Store, Unlimited Tariff, Netflix, Digital Services, Samsung Handset, AVoD, Finance Apps, streaming video, Soccer content, iCloud, Handset Exchange Program, Zero Rating, Amazon Prime Ecosystem, Movistar Plus, VR Headset, RingBack Tunes, Merger and Acquisition, Oculus Content, Safety Apps, Entertainment Apps, Progressive Web Apps, TV, AT&T Oculus Content, Subscription Video on Demand, Content Curation, YouTube, Red Entertainment, Football Content, Movistar+, Facebook Watch, Original Content, JIO KBC Play Along, App Store, Starz Play, Home TV, English Premier League, Bundled Audio Books, Music Streaming, Cloud App, EE Music, Oculus, Advertising Video on Demand, Utilities Apps, gaming, FAANG, Spotify, Movistar Música App, Aggregator,

1

Overview

1

2

Introduction

2

2.1

Background to the Report

2

2.1.1

Differing Network Operator Strategies

2

2.1.2

FAANG & Spotify - Content Plays

4

2.1.3

Apple – Services as Second Largest Revenue Source

4

2.1.4

Netflix – Leading Video/Bullish Original Content/Rising Debt

5

2.1.5

Spotify – Yet to turn a Profit

6

2.1.6

Amazon – The Prime Ecosystem

7

2.1.7

Google & YouTube – Subscription & Advertising VOD

8

2.1.8

Facebook – Watch, MLB & Premier League Streaming in Asia, Oculus VR

12

2.1.8.1

Facebook Watch

12

2.1.8.2

MLB Streaming and NFL Highlights

13

2.1.8.3

English Premier League Streaming in South East Asia

13

2.1.8.4

Oculus Content

13

2.1.9

Quibi – Upcoming Short Form Video Service

13

2.2

Report Content

14

2.3

Currency and Conversions

14

2.4

Further Questions and Feedback

15

3

Case Examples

16

3.1

North America

16

3.1.1

AT&T USA

16

3.1.2

Verizon USA

18

3.1.2.1

Content Ambition Context

18

3.1.2.2

Verizon Content Plays

18

3.1.2.3

Verizon Wireless App Recommendation - Curation

21

3.1.3

T-Mobile USA

24

3.1.3.1

Content Ambition Context

24

3.1.3.2

Added Extras Included Within T-Mobile ONE Tariff

24

3.1.3.3

T-Mobile Tuesdays Loyalty Programme

25

3.2

Europe

26

3.2.1

EE Promotional Approach in the UK

26

3.2.2

Vodafone Red Entertainment Plans in the UK

27

3.2.3

Three Zero Rating and Promotions in the UK

29

3.2.3.1

Three’s Content Approach

29

3.2.3.2

Sample Content-oriented Promotions

31

3.2.4

Telefónica in Spain

33

3.2.4.1

Telefonica’s Portal and Curation Approach

33

3.2.4.2

Emotion Portal Content

35

3.2.4.3

Non-Portal Content

37

3.2.5

Vodafone Spain

40

3.2.5.1

Bundling Content and Zero Rating Social Networking

40

3.2.5.2

Video Content

40

3.2.5.3

Music Content

41

3.2.5.4

Vodafone’s Response to Football Content Rights Costs in Spain

43

3.2.6

NOS Portugal

44

3.2.6.1

NOS Ownership Approach to Content

44

3.2.6.2

NOS Apps Family

44

3.2.6.3

NOS INDIE

45

3.2.7

Deutsche Telekom Germany

46

3.2.7.1

General Content Approach

46

3.2.7.2

The Magenta Brand - Original and Curated Content

48

3.2.7.3

Virtual and Augmented Reality

52

3.2.8

Orange France

54

3.2.8.1

General Approach

54

3.2.8.2

Content Offers Available to Mobile Customers

54

3.3

Global Cases

56

3.3.1

Ooredoo Algeria

56

3.3.1.1

Educational (Linguistic) Content

56

3.3.1.2

Games and Sports Content

58

3.3.1.3

Video and Music Partnerships

59

3.3.2

True Move Thailand – Moving Beyond TV Everywhere

60

3.3.3

Movistar Play - Latin America

65

3.3.4

Vivo - Telefónica in Brazil – Vivo

67

3.3.4.1

Context of Tariff Plans and App Store Strategy

67

3.3.4.2

Entertainment

70

3.3.4.3

Sports

72

3.3.4.4

Education

72

3.3.4.5

Utilities

73

3.3.4.6

Health & Wellness

75

3.3.4.7

Safety

77

3.3.4.8

Finance

78

3.3.4.9

For Businesses

79

3.3.5

Claro Brazil

80

3.3.5.1

Content and Mobile Service Plans

80

3.3.5.2

Entertainment

82

3.3.5.3

Education

85

3.3.5.4

Finance

86

3.3.5.5

Safety

86

3.3.5.6

Health and Wellness

87

3.3.5.7

Utilities

88

3.3.5.8

Children

90

3.3.6

Reliance Jio India

92

3.3.6.1

Impact of Data Pricing / Handset Strategy on Content Services

92

3.3.6.2

Monsoon Hungama JioPhone, KaiOS and Progressive Web Apps (PWAs)

93

3.3.6.3

PWA Content for the JioPhone

95

3.3.6.4

Jio as Content Aggregator and Original Content Producer

96

3.3.6.5

JIO KBC Play Along & Jio Cricket Play Along

98

3.3.6.6

Education – Embibe Platform Partnership

100

3.3.7

Bharti Airtel India

100

3.3.7.1

Responding to Jio’s Content Market Disruption

100

3.3.7.2

Content Offerings

101

3.3.7.3

Airtel’s Content Partners

103

3.3.8

Investment Returns in the Indian Market

104

4

Findings and Conclusions

107

5

Recommendations

113

 

Appendix – Feedback Questions

116

Our Clients

The reports are thorough and extensive. They give a complete overview on a certain topic and open the mind to new business ideas... It is the most extensive program available for our industry Proximus Belgium
Mobile Market Development 2015