Growing commitment
to Asia and beyond
Deepak Mathur,
Agenda
SES
Increasing appetite for
satellite capacity
Commitment to Asia
Customer spotlight 1:
Cignal TV
Customer spotlight 2:
IPM
SES: A global satellite operator
One of the leading global satellite operators in the world
Has a global fleet of 53 satellites that covers 99% of the world’s population
Delivers more than 5,600 channels, out of which over 1,500 are in HD to 276 million TV homes
Total revenue for SES in 2012 was approximately USD 2.44 billion
Our satellite capacity is used for direct-to-home broadcasting, video distribution, cellular backhaul, broadband access, mobility (aeronautical and
SES in Asia: A growing presence
SES has five satellites serving Asia today
We have customers across Asia-Pacific; from as far east as Solomon Islands to as far west as Afghanistan
Good balance between our media and enterprise customers
The emerging markets contribute to 26% of SES revenue in 2012
SES has been in Singapore since 2000
Head count in the regional head office in Singapore has more than doubled in the last two years and is still
growing
SES in Asia: Leading DTH satellite operator
DTH platform Market Position Subs (000s) # of channels
Airtel India 108.2°E 10,000 270 SD + 16 HD
Dish TV India 95°E 15,000 223 SD
Cignal Philippines 108.2°E 441 62 SD + 19 HD
GSat Philippines 108.2°E 100 50 SD + 11 HD
AVG Vietnam 95°E 100 89 SD + 10 HD
TVB Pay Vision Hong Kong 108.2°E 225 45 SD
IPM Thailand 95°E 4,000 39 SD + 4 HD
#1 in DTH channels carried
#1 in DTH subscribers reached is…
Reaches nearly 30 million pay TV homes and carries more than 800 DTH channels in Asia - more than any other satellite operator
• Carries the largest and one of the fastest growing DTH platforms in India • Serves the largest DTH operator in the Philippines
Asia vs the rest of the world
North America, 6
South America, 14
Europe, 10
Middle East North Africa, 10
Sub-Saharan Africa, 18 Russia CIS, 2
Asia, 100
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% A ver ag e GD P gr o w th b y 20 17Share of population below 24 years of age
Source: IMF, UNDESA, Dataxis
Bubble size: New TV homes by 2015 (in million)
TV homes is expected to grow the fastest in Asia due to growing GDP and young population 6
DTH demand in Asia expected to soar
Strong opportunities expected in
Indonesia, the Philippines, Thailand and Vietnam where pay-TV penetration rates are still fairly low and expected to grow in the next couple of years
Growing demand for pay-TV content, HD content and more regional content is driven by:
• young and favorable demographics • incredible linguistic and ethnic diversity • growing economies
• lower customer premises equipment (CPE) cost
Source: SES Analysis, Euroconsult
4,000
7,000
Number of channels Number of
subscribers
Channel growth strongly correlates with subscribers growth
2012 2021
…leading to a projected +3,000 DTH channels by end of the decade…
Growing demand for data services
Enterprise or data market continues to be strong in Asia with the investments Asian governments are making in e-governance and in bridging the digital divide
Increasing demand in the maritime industry and incipient demand in the aeronautical industry
• Demand for Ku-band over Asia for mobility demand is expected to see growth with a CAGR of 20% from 2011-2021
• SES-9 maritime beam specifically designed to address this market 40 39 37 36 35 33 32 31 30 29 118 124 130 133 135 137 141 145 148 151 9 12 15 20 25 30 33 37 44 48 96 101 105 109 114 118 120 125 132 138 268 280 290 300 310 319 329 343 361 376 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
APAC Ku-band data demand (in 36MHz txp)
Gov/Mil
Commercial Mobility Broadband Access Enterprise Data Telephony & Carrier
Source:NSR, Global Assessment of Satellite Demand and Supply - 9th Edition
Growing with our customers:
Three new satellites for Asia since 2010
2000
2002
2009
2010
2011
2012
SES-8 SES-9 SES-7 NSS-12 NSS-9 NSS-6 NSS-11 No of transp on ders To be launched Q3 2013 To be launched in 2015SES-8: To be launched Q3 2013
SES-8 will be co-located with NSS-6 at prime orbital slot of 95 degrees East when launched
The high performance beams of SES-8 will support key DTH customers in rapidly growing markets in South Asia and Indo-China
Will provide expansion capacity for DTH applications and deliver SD and HD channels to the region
SES-9: Coming in 2015
Largest satellite dedicated to Asia
Will be positioned at the well-established orbital slot of 108.2 degrees East where it will be co-located with the existing SES-7 satellite and replace NSS-11
Will provide incremental and replacement capacity
Will provide Asian DTH operators with the capacity to broaden their pay-TV offerings
Will deliver other communications services in Northeast Asia, South Asia and Indonesia, as well as maritime communications for vessels in the Indian Ocean
2012 2013 ASTRA 2G ASTRA 5B SES-8 SES-6 ASTRA 2F SES-5 QuetzSat-1 SES-2 SES-3 Yahsat 1A New satellite ASTRA 1N ASTRA 2E SES-4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2016/2017 One further growth satellite
Potential fleet investment of an additional
dedicated satellite to serve Asia
Solid track record: 9 successful launches since 2011
More scheduled: 5 additional satellites will be launched by 2015
Further growth opportunities: 1 satellite beyond 2014
Successfully launched! Committed programmes Further growth opportunities 2011 SES-9 2015 2013
Further investment in emerging markets:
Soon to be launched O3b Networks
SES’ investment in O3b Networks complements SES’ existing service offering by creating high-throughput capacity at an attractive cost point
The O3b fleet, a constellation of 12 medium orbit satellites, will serve emerging markets
First four satellites to be launched June 24
O3b aims to provide services in the trunking, mobile backhaul, oil and gas, maritime and mining sectors
Customer spotlight:
Cignal Digital TV
Annie Naval
OVERVIEW
• Launched July 2009 to the public, tapping un-served/un-cabled market mainly in the provinces.
• More channels for HD (the most in industry at 8)
• Cignal as #2 player
• Beyond provincial coverage, Cignal expanded its target market to include MM & urban cities with introduction of more competitive high-end Plans
• Cignal is the fastest growing pay TV operator, ending the year with cumulative 257,845 subscribers
• AC Nielsen study showed that Cignal has better image and sound quality over Sky Cable
• Expanded payment and load options for its growing subscriber based
• Ended the year with more than 440,000 subscribers
• Acquired Prestigious accounts from the Hospitality industry
• Cignal as #1 in HD
• Goal to become the #1 Pay TV provider in the country
• Continue leadership in HD
Value for Money
•
Cignal Digital TV is
available in Postpaid and
Prepaid subscription
options.
•
We cater to various types
of customers:
Residential
Restaurants, bars,
offices
Hotels, resorts,
hospitals
Average subs base growth Y-o-Y:
Prepaid – 128%
WE’VE HIT 500,000 SUBSCRIBERS
(as of June 12, 2013)
AVERAGE GROWTH OF 100% Y-o-Y
Customer spotlight:
IPMTV
Manop Tokarnka
CEO, IPMTV
Who is IPM?
•
DTH operator with corporate office located in Bangkok, Thailand
•
Founded in early 2007
•
Core business
1.
Content production
2.
Satellite Broadcasting
3.
DTH services
•
Mission
1.
Delivery high quality video content to the Thais at affordable price
2.
Achieve high level of video market penetration in Thailand
IPM Group Network
IPMTV CO., LTD.
IPM VISION CO.,
LTD.
IPM PLATFORM
CO., LTD.
IPM SALES
AND SERVICE
CO., LTD.
CENTRAL TELECOM
CO., LTD.
20 SD channels
Thaicom-5 C-Band
Expanded to over 130 SD & more than 20 HD channels
NSS-6 Ku-Band
Future Plans
Aim to increase to 300 SD and 40 HD channels with additional
satellite capacity on SES-8 (late 2013)
Evolution of Ultra HD
2K (2048 x1 08 0) FHD (1920x1080) 4K (4096 x2 16 0) SD (720x576) HD (1366x768) UHD (3840x2160)Content Production
Content aggregation
(Channels, Pay-TV)
Distribution
Hardware equipment
(TV, receivers,
cameras)
SES: Driving the Ultra HD ecosystem
Increasing 4K or Ultra HD content
20
14
20
15
20
16
20
17
20
18
20
19
Source: IHS Electronics & Media, February 2013 Almost 950 films and TV shows shot in 4K and can be distributed in Ultra HD right away or rendered again for Ultra HD distribution in 2012
Forecast for footage shot in 4K or Ultra HD is even higher in 2013
HEVC will make Ultra HD commercially viable
HEVC -- a new codec ratified in January 2013 -- offers up to 50 per cent encoding efficiency improvement compared to MPEG-4
HEVC will make Ultra HD commercially viable for broadcasters
Broadcasters looking to differentiate their services and to win additional market share in a competitive environment will add Ultra HD as a premium offering
SES pioneered first Ultra HD transmission in the new HEVC standard live from 19.2°East
SD
•MPEG-2: ca. 4 Mbit/s •MPEG-4: ca. 2 Mbit/s •HEVC: ca. 1 Mbit/s
HD
•MPEG-2: ca. 19 Mbit/s •MPEG-4: ca. 8 or 9
Mbit/s
•HEVC: ca. 4 Mbit/s
UHD
•MPEG-2: ca. 80 Mbit/s •MPEG-4: ca. 40 Mbit/s •HEVC: ca. 20 Mbit/s
Image Quality
0 200 400 600 800 1,000 1,200 0 50 100 150 200 250 300 350 400 450 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 U H D C hanne ls M il li o n H om e s
UHD TV households HEVC STB shipments UHD TV Channel Count #
Ultra HD worldwide forecast: 2013-2025
2025
•1000 UHD channels •>500 million UHD screens & 400 million HEVC STB’s installed
Source: IHS Screen Digest Insight Report -- Ultra High Definition: The next generation of high resolution content 2020
•200 UHD channels •100 million UHD screens & 50 million HEVC STB’s installed
•
Ultra HD will become mass market in the next decade, half of all screens and STB’s sold in 2025 will be Ultra HD
The future of Ultra HD in Asia
Ultra HD will see commercial launch in the premium market segment in 2016
Will become a mass market later as the benefits of Ultra HD become most evident with larger screen sizes
Asia will probably be the next region after North America or Europe to embrace Ultra HD due to the strength of the growing economies in the region as well as the young and technology-savvy population
Mature markets such as Japan, Korea, Australia, and New Zealand will be the first adopters of Ultra HD in the region.
After a few years, developing markets of Asia will adopt Ultra HD as well
Global roll-out of Ultra HD
Conclusion
SES, one of the leading satellite operators, continues to invest in Asia
• Committed investment of SES-8 and SES-9
• Exploring the possibility of ordering another satellites
Key trends driving satellite consumption:
• Pay TV
• 3G/LTE network roll-outs, e-government initiatives, digital inclusion • Aeronautical and maritime
New capacity in the region enables our Asian customers to expand their businesses
SES readies for Ultra HD
• Global fleet of 53 satellites and total bandwidth ready to transmit in Ultra HD • Pioneered new HEVC technology