Investor Presentaiton
SES Video - Market Dynamics
SES
Linear TV remains the leading mass market medium
Market size
USD billion (1)
228
283
Advertising spending
USD billion (2)
243
191
206
237
158
2017
■PayTV
2022
■OTT
2017
■TV
176
2022
■Online Video
Satellite continues to be the leading distribution platform
# of channels(3)
Satellite TV channels
46,269
42,840
11,044
2017
17,938
2022
HDTV SD ■ UHD
OTT is complementary to linear TV
Daily TV viewing time in Europe (1,4)
Direct to home satellite reach
Millions of households (1)
500
454
366
320
99
2017
■ Europe
INAM
A
Content rights owners focus their
efforts on building OTT, but linear
TV broadcast remains most
efficient mass market medium to
maximise viewership
OTT availability and quality of
experience is dependent on
broadband access
Channel growth mainly from emerging
markets more than offsetting slight
decline in mature markets
▲ Strong SD to HD transition in Europe
and UHD to reach 600 channels by
2022 and >1000 by 2025(3) which
require more bandwidth
103
A
2022
■ Emerging
A
1h13
OTT
3h36
BBC
HBO
Player
NETFLIX
NOW
amazon.com
Prime
⚫tv
Malab
3h49
2006
sky HD
CANAL+
Linear TV
HD + ⑦HD
DFHD
■Linear TV
■OTT
2018
Stable Direct to home reach in
developed markets and growing
internationally
Linear TV remains the most used
medium even among millennials
and especially in prime time
A Emergence of hybrid solutions
combining Satellite and broadband
video feeds to provide the best
video experience
SES Opportunities
▲ Better quality HD and UHD with
enhanced compression
standards to increase demand
▲ Continued growth potential in
emerging markets
▲ Full control of customer
experience and need to
maximise audience for high
value channels continue to lead
broadcasters to stick to satellite
▲ Cloud make MX1 solutions
competitive by leveraging
backend media workflows for
thousands of channels
SES Challenges
▲ Broadcasters focusing on high
value content may lead niche
content moving to online
distribution or to disappear
leading to less Volume
▲ New video consumption trends
urge Satellite operators to adjust
existing business model
▲ Some price erosion in mature
markets
Dynamics leading to overall stability with some decrease in Video Distribution in Europe and in the US and pockets of growth in developing markets Video Services
1) Ampere 2018
2) Ovum 2017
3) Eurodata 2017
4) Mediametrie 2018
SES investor presentation I September 2018
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