Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — SWelcom — Investor Day (October 2007)
35 slides from Sanoma Oyj's investor day presentation, Oct 5, 2007
Slide 1: Living Images
Living Images Tapio Kallioja President, SWelcom CMD, 5 October 2007 SWelcom
Slide 2: SWelcom’s Present Businesses
SWelcom’s Present Businesses Commercial Television and Radio Cable Communications Digital Media Solutions Web design, web hosting, web TV platforms SWelcom Tapio Kallioja | 5/10/2007 | 2
Slide 3: What Happens in TV?
What Happens in TV? “DVB” “VOD” “mobile TV” “time-shifting” “HDTV” “pay TV” “IPTV” “UGC” SWelcom Tapio Kallioja | 5/10/2007 | 3
Slide 4: The Transmission Platforms of Broadcast TV Have All Become Digital
The Transmission Platforms of Broadcast TV Have All Become Digital SWelcom Tapio Kallioja | 5/10/2007 | 4
Slide 5: The Whole Value Chain of “Traditional” TV Is Now Digital
The Whole Value Chain of “Traditional” TV Is Now Digital customer customer content content packaging packaging marketing marketing distribution distribution customer customer devices devices Digital Content Digital Transmissions Digital Receivers SWelcom Tapio Kallioja | 5/10/2007 | 5
Slide 6: The Whole Value Chain of “Traditional” TV Is Now Digital
The Whole Value Chain of “Traditional” TV Is Now Digital customer customer content content packaging packaging marketing marketing distribution distribution customer customer devices devices Digitalisation has led to: • Increased distribution capacity on all platforms • Alternative digital distribut
Slide 7: Increased Distribution Capacity Has Led to Increased Number of TV Channels
Increased Distribution Capacity Has Led to Increased Number of TV Channels Analogue Terrestrial Television Channels in Finland SWelcom Tapio Kallioja | 5/10/2007 | 7
Slide 8: Increased Distribution Capacity Has Led to Increased Number of TV Channels
Increased Distribution Capacity Has Led to Increased Number of TV Channels Digital Terrestrial Television Channels in Finland SWelcom Tapio Kallioja | 5/10/2007 | 8
Slide 9: Increasing Number of Channels Does Not Lead to Increased Viewing ...
Increasing Number of Channels Does Not Lead to Increased Viewing ... 3:30 3:00 2:51 2:53 2:49 2:49 2:48 2:47 2:47 2:47 2:44 2:41 2:30 2:30 2:30 2:30 2:00 1:30 1:00 0:30 0:00 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1-8/06 1-8/07 Average Daily Television Viewing in Finland (h:min) Sourc
Slide 10: ... But, More Channels Means More Fragmented Viewing
... But, More Channels Means More Fragmented Viewing 100 % 4 8 7 5 6 5 5 5 8 10 9 2 10 12 16 Others 90 % 7 12 12 11 12 12 12 1 1 2 80 % 3 4 11 5 Nelonen 70 % 5 44 44 42 42 37 40 39 38 35 60 % 33 29 SubTV 26 50 % MTV3 40 % 21 22 21 22 21 19 20 20 20 20 20 19 30 % TV2 20 % 25 24 24 23 23 23 24 23 25 2
Slide 11: Fragmented Viewing Means More Ad Spots on More Channels
Fragmented Viewing Means More Ad Spots on More Channels 1% 3% 5% 5% 22% 36% 47% 6% 71% 53% 31% MTV3 8% MTV3 12% SubTV SubTV Nelonen Nelonen Urheilukanava Urheilukanava 2003 JIM 2006 JIM 2007 Optimal Placement of Advertising Spots to Reach the Target Group 25–44y (300 TRPs, Net Coverage 79%) Sources:
Slide 12: We Continue to Cover The Fast And Early Adopters With Our Channels
We Continue to Cover The Fast And Early Adopters With Our Channels Fast and Early Adopters Nelonen Urheilukanava JIM Radio Radio Aalto Rock nelonen.fi SWelcom Tapio Kallioja | 5/10/2007 | 12
Slide 13: About Time-Shifting and Ad-Skipping
About Time-Shifting and Ad-Skipping • Technically time-shifting can be arranged in different ways: – with Digital Video Recorders (DVR) owned by the viewers – through “previews” or “catch-ups” offered by the TV channel online – with a central storage (“Network DVR”) operated by e.g. a cable operator
Slide 14: Digitalisation and Broadband Have Led to Rapid Growth of Cable Subscribers
Digitalisation and Broadband Have Led to Rapid Growth of Cable Subscribers 350 1,000 households 300 250 200 150 100 50 0 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 Q2 Households Connected to Welho’s Cable TV Network SWelcom Tapio Kallioja | 5/10/2007
Slide 15: Welho Is Expanding Its Network both with Cable and DSL Technologies
Welho Is Expanding Its Network both with Cable and DSL Technologies CTV EXISTING CONSTRUCTION PLAN 2007 DSL EXISTING CONSTRUCTION PLAN 2007 NETWORK NETWORK SWelcom Tapio Kallioja | 5/10/2007 | 15
Slide 16: Welho Distributes Today over Digital Television Channels
Welho Distributes Today over 100 Digital Television Channels HDTV SDTV ... including High Definition TV SWelcom Tapio Kallioja | 5/10/2007 | 16
Slide 17: Pay TV Represents a Growing Revenue Source for Television Operators
Pay TV Represents a Growing Revenue Source for Television Operators 75 1,000 subscriptions 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 Q2 Welho’s Pay TV Subscriptions SWelcom Tapio Kallioja | 5/10/2007 | 17
Slide 18: Welho Has Now over 92,000 Broadband Customers
Welho Has Now over 92,000 Broadband Customers 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 Q2 SWelcom Tapio Kallioja | 5/10/2007 | 18
Slide 19: Increasing Speed Has Enabled “Live Streaming” over Broadband
Increasing Speed Has Enabled “Live Streaming” over Broadband Video server IP IP network network Viewing while Either streaming On-demand Content The “missing link” or Linear Channels SWelcom Tapio Kallioja | 5/10/2007 | 19
Slide 20: Example of “Live Streaming”: Nelonen Netti-TV (VOD Site)
Example of “Live Streaming”: Nelonen Netti-TV (VOD Site) Nelonen’s own programming offered over broadband SWelcom Tapio Kallioja | 5/10/2007 | 20
Slide 21: Example of “Live Streaming”: Nelonen’s “HOT from the US”
Example of “Live Streaming”: Nelonen’s “HOT from the US” Fresh episodes of Disney-ABC series offered by Nelonen on-line SWelcom Tapio Kallioja | 5/10/2007 | 21
Slide 22: Example of “Live Streaming”: Welho Play (Video On-demand Site)
Example of “Live Streaming”: Welho Play (Video On-demand Site) VOD “aggregation”: content from different VOD sources SWelcom Tapio Kallioja | 5/10/2007 | 22
Slide 23: IPTV: “Cable TV over IP Network”
IPTV: “Cable TV over IP Network” Video servers IP IP network network 1-2 channels at a time over a 6-8 Mbps broadband connection The remote control communicates with the servers SWelcom Tapio Kallioja | 5/10/2007 | 23
Slide 24: Maxisat Is a Finnish Forerunner of IPTV with Their Maxinetti Multi Service
Maxisat Is a Finnish Forerunner of IPTV with Their Maxinetti Multi Service SWelcom owns 46.2% of SWelcom Tapio Kallioja | 5/10/2007 | 24
Slide 25: Welho Offers IPTV to Its DSL Customers Outside the Cable TV Network
Welho Offers IPTV to Its DSL Customers Outside the Cable TV Network SWelcom Tapio Kallioja | 5/10/2007 | 25
Slide 26: The Two Versions of Mobile TV
The Two Versions of Mobile TV DVB-H 3G • The TV signal is received from a digital • The TV signal is transported through the terrestrial TV transmission 3G mobile telephone network • Requires a transmission network • Does not require a separate transmission of its own network • The reception of TV s
Slide 27: With Digital Cameras and Mobile Phones also Users Generate Content (“UGC”)
With Digital Cameras and Mobile Phones also Users Generate Content (“UGC”) customer customer customer customer content content packaging packaging marketing marketing distribution distribution customer customer customer customer devices devices devices devices Customers Take A Position In Both Ends
Slide 28: Examples of UGC: Nelonen’s UGC Sites
Examples of UGC: Nelonen’s UGC Sites SWelcom Tapio Kallioja | 5/10/2007 | 28
Slide 29: So, TV Can Now Be Watched …
So, TV Can Now Be Watched … … traditionally “over the air” with TV sets … SWelcom Tapio Kallioja | 5/10/2007 | 29
Slide 30: So, TV Can Now Be Watched …
So, TV Can Now Be Watched … … but also over the internet with e.g. personal computers … SWelcom Tapio Kallioja | 5/10/2007 | 30
Slide 31: So, TV Can Now Be Watched …
So, TV Can Now Be Watched … … and with mobile devices over mobile networks. SWelcom Tapio Kallioja | 5/10/2007 | 31
Slide 32: … And the Viewing Can Be …
… And the Viewing Can Be … … “linear” (according to a … or “on-demand” as … or forward “time-shifted” program chart), … provided by the operator ... by the viewer with a Digital Video Recorder (DVR). SWelcom Tapio Kallioja | 5/10/2007 | 32
Slide 33: So, What Happens in TV? Shift Happens!
So, What Happens in TV? Shift Happens! Network Shifting Device Shifting Time Shifting Place Shifting SWelcom Tapio Kallioja | 5/10/2007 | 33
Slide 34: Introducing: SWelcom 2.1
Introducing: SWelcom 2.1 Multi-channel Online Multimedia SWelcom Tapio Kallioja | 5/10/2007 | 34
Slide 35: Electronic Entertaining Experiences for People to Enjoy
Electronic Entertaining Experiences for People to Enjoy SWelcom