Orange content strategy Stfane France Content division December 2009 2 The global european Telecoms and TV market : 250 B (2008) 3 Mobile, Broadband and TV compensate the decrease of fixed 4 Source : PWC, june 09, exch rate 1 = 1.4$ Media and leisure include Internet access, advertising (online, TV, display), video games, pay TV, films, books, radio, press & magazines, music The growth will rely on people spending, mostly on : Internet access and services on fixed and mobile Pay TV and films Online Games The emerging countries will boost the market The crisis accelerates the move to digital media After the crisis, the growth of entertainment and media industry will take up Revenus mdias et loisirs mondiaux (M) Growth will pick up again after 2010 1162M media and leisure worldwide revenues (2013) +4,4%/an Media and leisure growth rate (2010-13) The crisis is mainly due to the fall in advertising revenues (incl. online), and in traditional media such as newspapers 1006 967 971 1009 1076 1152 200820092010201120122013 Though impacted by the crisis, the world media and leisure market will continue to expand after 2010 Worldwide media and leisure revenues M 5 The structure of TV markets in Europe in 2008 IPTV is particularly developed in France 6 Our strategy is to deliver the best possible content experience to our customers by operating as network editor network editor Functionalities Orange Experience Content Service providers Content/Services partners Offer to content/services providers a new and original platform of expression thanks to interactive tools Offer network/device agnostic simple services : Home network solutions Interactive services Recommendations Personalization Communities Multi-screen Offer to our customers a simple and intuitive enriched content experience Orange cinma sries 7 Distributing content on our networks is a way to differentiate our offer and create value for the customers differentiate from access competitors develop audience develop ARPU TV video music sport games infotainment the fully integrated operator capable of offering “content-everywhere” will enjoy a premium in the eyes of its customers 8 Orange has developed TV, music and games offers for all the networks (Mobile, PC, TV) Mobile Internet TV TV Mobile IPTV & Satellite Music StoreMobile Games Orange Game / Goa Music StoreOrange TV / Video Music channelsGames on TV TV / VideoMusicGames Radio Radio Infotainment 24/24 Actu Interactive channels Practical services 9 In Europe, Orange counts 13,5 millions of ADSL customers and 25 millions of mobile broadband customers fixed broadband: 8,8m mobile broadband: 12,6m TV: 2,5m France fixed broadband : 1,1m mobile broadband : 4,6m TV: 110K Spain mobile broadband : 408K Switzerland mobile broadband : 1,9m Belgium fixed broadband: 899k 3G customers : 4,7m UK fixed broadband : 2,3m mobile broadband : 5,4m TV: 239K Poland mobile broadband :1,2m Slovakia mobile broadband : 2,2m Romania Note : figures of Q3 2009 The development of our content offers is based on our leader position in fixed and mobile broadband across our footprint + Mauritius + Senegal 10 The landmarks of Orange content strategy 2003 Launch of TV and VoD via ADSL 2004 Launch of mobile TV (EDGE & 3G) 2006 Launch of high def TV on ADSL and mobile 2007 Partnership with the CNOSF and launch of Orange Sport TV, the 1st interactive multi- screen news channel dedicated to sports 2008 Agreement with France Televisions to create an exclusive catch-up service Launch of the 1st event channel Route du Rhum Orange webTV 9 august :launch of Orange foot 3 july : launch of DTH offer 13 November : launch of Orange cinema series 2009 France 24 multi-screen interactive service Integration of M6 Replay into Orange catch-up service Repositioning and rebranding of the sports channels Orange TV on Iphone Launch of Jukebox, music downloading service on PC 2005 Launch of Music Store, music downloading service on mobile Creation of Studio 37 Launch of Warhammer Musique Hits and Musique Max offers Video Party 11 Content : Key success factors of Orange One brand Content everywhere PC TV Mobile Triple play strategy (Internet + TV + Voice) National strategy for TV (IPTV + Satellite) Simplicity Quality of service Attractive content and services to acquire new subs and reduce churn New services : HD, Mix of TV and VOD, time and place shifting Content, service and price competition vs cable and satellite Orange Sport Orange Cinema Series 12 Orange content offers - TV 13 Orange TV, an “ la carte” offer including channels and on demand programmes based on 4 main themes : cinema, sport, children and music AccessThematic bouquetsPremium 3-Play More than 70 channels included and free services Thematic bouquet 9,90 / month Children 6 / month MusicCinema Sport 5 / month 9,9 / month 9,9 / month Arabe Italie Chine Portugal Pologne Etranger Adulte 8,9 / month Orange cinema series 12 / month Orange sport 6 / m