ESports direct A game changer for TV? - August/September 2017 - Digital TV Europe

 
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ESports direct A game changer for TV? - August/September 2017 - Digital TV Europe
August/September 2017

                            eSports direct
                            A game changer for TV?
pOFC DTVE AugSep17.indd 1                                       05/09/2017 17:21
ESports direct A game changer for TV? - August/September 2017 - Digital TV Europe
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ESports direct A game changer for TV? - August/September 2017 - Digital TV Europe
Digital TV Europe
          August/September 2017

          Contents                                                                                                                                            August/September 2017

          14. TV plays the millennial game
          The meteoric rise of eSports has caught the attention of TV operators and broadcasters, both
          of which are investing in rights and dedicating airtime to gaming. But how likely is this to win                                   eSports direct
          back millennial viewers? Andy McDonald reports.                                                                                    A game changer for TV?
                                                                                                                 pOFC DTVE AugSep17.indd 1                                       05/09/2017 15:27

          18. Talk TV
          With the advent of popular digital assistants such as Amazon Echo and the launch of next-
          generation TV devices like Sky Q, there are signs that using your voice to control the TV is finally
          filtering into the mainstream. Stuart Thomson looks at some of the latest moves.
                                                                                                                                                                            18

          26. Diving deeper into data
          Video service providers are still attempting to come to terms with how to manage and use big
          data. Identifying and focusing on key areas such as specific elements of marketing, targeted
          advertising and churn reduction can point the way ahead, writes Anna Tobin.

                                                                                                                    26
          32. Hack attack: TV and cybersecurity
          Cyber attacks are increasing in number and becoming more sophisticated, with the cost
          to corporations running into the billions. With conventional security concepts increasingly
          powerless against it, protection requires a paradigm shift. Adrian Pennington reports.

          42. IBC 2017: the preview
          This year’s IBC exhibition will take place at Amsterdam’s RAI from September 15-19. Digital TV
          Europe takes a look at some this year’s technologies.                                                                                                             32

          Regulars
          2 This month 4 News digest 50 Technology 54 People 56 Final analysis

          Visit us at www.digitaltveurope.com

                                                                                                                                                                                          1
p01 Contents DTVE AugSep17v2am.indd 1                                                                                                                                                 05/09/2017 17:59
ESports direct A game changer for TV? - August/September 2017 - Digital TV Europe
This month > Editor’s note                                                                                                    Digital TV Europe
                                                                                                                                  August/September 2017

          Issue no 333
          Published By:
                                                          Four faces of content
          KNect365 TMT
          Maple House
          149 Tottenham Court Road
          London W1T 7AD
                                                          New              content, new ways of finding it, new ways of making
                                                                           money from it, and new threats to it: this month’s issue
                                                          of Digital TV Europe looks at four key aspects of the emerging content
          Tel: +44 (0) 20 7017 5000
                                                          distribution universe.
          Fax: +44 (0) 20 7017 4953
                                                             First, the content that is being distributed is changing. Pay TV opera-
          Website: www.digitaltveurope.net
                                                          tors and broadcasters are desperate to win over younger audiences that
                                                          are in danger of becoming disengaged from traditional TV. One of the
          Editor Stuart Thomson                           emerging genres that seems to appeal to at least a significant sub-section
          Tel: +44 (0) 20 7017 5314                       of this generation is eSports, which has grown massively in terms of its
          Email: stuart.thomson@knect365.com              audience and appeal over the last couple of years, to the point where me-
                                                          dia companies such as Modern Times Group see it as central to their future, and service provid-
                                                          ers such as Telefónica are investing in their own gaming teams and platforms. In this issue, we
          Deputy Editor Andy McDonald                     speak to the key players and assess their future prospects and likely evolution.
          Tel: +44 (0) 20 7017 5293                          Second, sources of available content are proliferating and pay TV platforms are increasingly
          Email: andrew.mcdonald@knect365.com             embracing OTT TV services from third parties, but viewers still complain that they can’t find
                                                          content that they want to watch. To help cut through the complexity of navigating through mul-
                                                          tiple menus, voice control has now arrived, boosted by the popularity of digital assistants such
          Contributors
                                                          as Amazon Echo. Also in this issue of Digital TV Europe, we look at how effective voice will be
          Kate Bulkley, Andy Fry, Adrian Pennington,
                                                          as a content discovery tool and as a way for platforms to differentiate their offerings.
          Adam Thomas, Anna Tobin, Jesse Whittock
                                                             Third, the proliferation of available content sources also raises the challenge of how to make
                                                          a business case for service providers and content suppliers alike. With audiences fragmenting,
          Correspondents                                  and the traditional advertising model now facing a long-term decline, we look at the promise
          France: Julien Alliot; Germany: Dieter          of big data and the ways in which more sophisticated use of the data available could enable TV
          Brockmeyer; Italy: Branislav Pekic              operators and channel providers to improve marketing, reduce churn and build a sustainable
                                                          business model.
                                                             Fourth, the industry’s move to IP and OTT platforms means that new security threats are
          Commercial Director Patricia Arescy             emerging. On top of traditional content security concerns, TV operators and broadcasters are
          Tel: +44 (0) 20 7017 5320                       increasingly the target of cybercriminals. In this issue we look at the nature of emerging threats
          Email: patricia.arescy@knect365.com             not only to the intellectual property rights of operators and broadcasters, but to the personal
                                                          lives of their subscribers.
                                                             Finally, we take a look at some of the technologies at this year’s IBC show and provide our
          Art Director Matthew Humberstone
                                                          usual digest of all the latest industry, technology and people news. l
          Marketing Manager Marita Eleftheriadou

          Printing Wyndeham Grange, West Sussex

          To subscribe to this magazine or our
           daily email newsletter please visit
           digitaltveurope.net/registerhere

          © 2017 Informa UK Ltd
          All rights reserved
                                                                                                                 Stuart Thomson, Editor
          Reproduction without permission is prohibited
                                                                                                                 stuart.thomson@knect365.com

                                                                                                                       Visit us at www.digitaltveurope.com

          2
p02 Ed Note DTVE AugSep17v3am.indd 2                                                                                                                    05/09/2017 18:00
ESports direct A game changer for TV? - August/September 2017 - Digital TV Europe
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ESports direct A game changer for TV? - August/September 2017 - Digital TV Europe
News > digest                                                                                                                          Digital TV Europe
                                                                                                                                            August/September 2017

          News digest
          > 4 Deutsche Telekom taps Netflix, Fox+ and UFA for EntertainTV > 5 LG sees upside
          from ‘fragmented’ OTT market > 8 Disney strikes deal with Iflix after cutting Netflix >
          10 Canal+ needs level playing field, says Vivendi > 12 Ofcom submits new Sky advice
           Deutsche Telekom taps Netflix, Fox+ and UFA for EntertainTV
            By Andy McDonald >                         The Walking Dead and 24.                                                       MGM-produced The Hand-
                                                          On top of this, a new part-                                              maid’s Tale, Sienna Films and
            Deutsche Telekom is adding                 nership with German film and                                                eOne Entertainment’s Cardinal,
            Ultra HD support and direct ac-            television production company                                               and FX Productions, Pig New-
            cess to Netflix to its EntertainTV         UFA adds a wide selection of                                                ton and 3 Arts Entertainment
            offering, along with a raft of new         German movies and made-for-                                                 co-produced Better Things will
            content from the likes of Fox.             TV films to the service.                                                    be available on EntertainTV
               Deutsche Telekom’s new Ul-                 “Deutsche Telekom sees itself                                            starting October 4.The Fox+ cat-
            tra HD-ready MR 401 media re-              as an aggregator on the media        Sky and Insight TV will also be        alogue will launch at the same
            ceiver will provide EntertainTV            market – we bring together the       available through EntertainTV.         time.
            customers with direct access to            best content on our TV plat-            The Fox+ deal establishes              Deutsche Telekom said that
            Netflix following its launch this          form so that we can offer our        Deutsche Telekom as the first          all EntertainTV customers will
            autumn, with the release accom-            customers the best package,”         German partner to launch the           be able to access UHD content
            panying a major content push               said Deutsche Telekom’s head         non-linear service, which is al-       on demand, but only customers
            by the firm.                               of consumer, Michael Hagspihl.       ready available in France, Swe-        with a MagentaZuhause L rate
               For the first time the operator,           “Combining superior tech-         den, Norway, Denmark, Finland          plan and download speeds of
            which already boasts exclusive             nology, strong partners and          and Greece – with more launch-         up to 100 Mbps will be able to
            sports rights, has taken German            exclusive content is crucial to      es due to follow before the end        watch UHD live.
            premiere rights to three major             achieving that aim. With televi-     of the year.                              Deutsche      Telekom     an-
            new TV series – dystopian dra-             sion in Ultra High Definition,          “As we bring Fox+ to another        nounced the news at the IFA
            ma The Handmaid’s Tale, Cana-              Netflix and Fox as well as our ex-   key territory, the results we are      technology trade show in Berlin.
            dian crime series Cardinal and             clusive top series, we are taking    seeing from the product are sur-       Entertain TV is an IP-delivered
            comedy Better Things.                      the next step and underline our      passing our expectations, and          multiscreen TV service from
               Deutsche Telekom has also               leadership in the German TV          we’re thrilled to be partnering        Deutsche Telekom, which offers
            secured the German launch                  market.”                             with Deutsche Telekom, the             content live and on-demand and
            rights to Fox Networks Group                  The launch of the new MR          leading telco in the region, for       to the TV through a set-top box.
            Europe and Africa’s on-demand              401 set-top box means that,          our debut in Germany,” said               The company had 3.02 mil-
            service, Fox+, giving Enter-               aloingside Netflix, Ultra HD         Diego Londono, chief operating         lion German TV customers at
            tainTV viewers access to more              content from other content pro-      officer, Fox Networks Group Eu-        the end of June, up 8.9% year-
            than 50 seasons of shows like              viders like Videoland, YouTube,      rope and Africa.                       on-year.

                                                       end of this year, targeting its 3G   major international content players    making the service available via
          Congo                                        mobile subscribers and data users.   to develop their own subscription      distribution partners only, unlike
                                                       The agreement for Congo will also    video-on-demand services with          other SVOD services available
          PROG > TracePlay launch                      see Trace take control of Africa     the launch of Paramount+ in the        across the region such as HBO
          Modern Times Group (MTG)-owned               Media-owned FM radio station         Nordic region. The new service will    and Netflix. Paramount+ will be
          music and urban lifestyle broad-             AfriRadio, by November.              hold the rights to the first pay TV    available to premium subscribers
          caster Trace has struck an agree-                                                 window for paramount Pictures’         of Danish cable and telecom group
          ment to launch its subscription                                                   new movie releases, along with a       YouSee/TDC Group’s TV service
          video-on-demand service TracePlay            Denmark                              range of catalogue films and over      and TDC Group’s Norwegian unit
          in the Democratic Republic of Con-                                                800 episodes of MTV and Comedy         Get, Telenor-owned pan-regional
          go with local mobile player Africell.        OTT > Paramount+ launch              Central shows. Paramount+ will         pay TV operator Canal Digital in
          Under the deal between the pair,             Viacom Media Networks Interna-       launch in the Nordic region on         Norway and Sweden, and Swedish
          Africell will launch TracePlay by the        tional is joining the race among     October 1. However, Viacom is          cable operator Com Hem.

                                                                                                                                  Visit us at www.digitaltveurope.com

          4
p04-05,08,10,12 DTVE News Digest AugSep17v4st.indd 4                                                                                                              05/09/2017 17:58
ESports direct A game changer for TV? - August/September 2017 - Digital TV Europe
Digital TV Europe                                                                                                                         News > digest
           August/September 2017

                                                                                               IPTV > Canal+ on Bouygues
          Estonia                                      France                                  Canal+ has teamed up with service      Events
                                                                                               provider Bouygues Telecom to
          IPTV > Tele2 and Viasat                      CAB > SFR delist plan                   launch a new offering, Start by        IBC 2017
          Mobile telecom operator Tele2 Es-            Altice has filed its planned buyout     Canal, that will be available via      Date: 14 - 19 September
          tonia has teamed up with local pay           offer for the remaining shares of       Bouygues’ set-top boxes. The           Venue: Rai, Amsterdam, The
          TV operator Viasat to launch a joint         French subsidiary SFR with the          offering, which includes thematic      Netherlands
          TV and internet offering across the          French markets authority, the AMF.      channels and unlimited access to       W: www.ibc.org
          country. Tele2 and Viasat will offer         Altice has filed a buyout offer to be   the Canalplay video-on-demand
          two combination packages. A Silver           followed by a squeeze-out, offering     service, will make films, series,      Digital TV Central & Eastern
          package priced at €25 a month                €34.50 a share. Following comple-       animated content and entertain-        Europe
          will include unlimited internet with         tion, SFR will be delisted form the     ment shows available live and via      Date: 11 - 12 October
          speeds of up to 30Mbps down-                 Euronext Paris exchange, probably       catch-up and is aimed at a family      Venue: Kempinski Hotel, Buda-
          stream and 10Mbps upstream,                  early in the fourth quarter. The        audience. Start will initially be      pest, Hungary
          25 Estonian television channels,             transaction has yet to be approved      offered to subscribers who have        W: tmt.knect365.com/digi-
          and international lifestyle, news,           by the AMF. Altice previously           signed up for Bouygues Telecom’s       tal-tv-cee/
          kids and factual services. A Gold            attempted to acquire the shares         Bbox Miami+ offering, at no extra
          package for €28 will also include            in SFR that it did not already          charge. Bouygues customers with        Content Innovation Awards
          movies, sports and Russian TV                own last year, then amounting to        a standard Bbox will be able to sign   Date: 15 October
          channels. Modern Times Group                 22.25% of the company’s stock.          up for the service for a monthly fee   Venue: Carlton Hotel Grand
          announced in March that it was               However, the AMF rejected the bid       of €9.99. Start by Canal will also     Salon, Cannes, France
          selling its Baltic operations to Provi-      on the grounds that Altice had not      enable Bouygues subscribers to         W: contentinnovationawards.
          dence Equity Partners, including             provided sufficient information to      view content on multiple screens       com
          the Viasat pay TV service.                   shareholders.                           via the myCanal offering.
                                                                                                                                      MIPCOM
                                                                                                                                      Date: 16 - 19 October
           LG sees upside from ‘fragmented’ OTT market                                                                                Venue: Palais des Festivals,
                                                                                                                                      Cannes, France
            By Andy McDonald >                                             Fries: steady          Liberty said that it added          W: www.mipcom.com
                                                                           improvement         302,000 next-gen TV subscrib-
            Liberty Global is benefitting                                  in video is one     ers in Q2 and now reaches              Broadband World Forum
            from a fragmented, and in some                                 of Liberty’s        7.2 million customers across           Date: 24 - 26 October
            cases still underdeveloped, OTT                                untold stories.     its Horizon TV, Horizon-Lite,          Venue: Messe, Berlin, Germany
            market in Europe according to                                                      TiVo, Virgin TV V6 and Yelo            W: tmt.knect365.com/bbwf
            CEO Mike Fries.                                                                    TV platforms.
               Speaking on Liberty’s sec-                                                         For the first half of the year,     Discop Africa
            ond quarter earnings call, Fries           due to the company taking a             Liberty lost 31,000 video cus-         Date: 25 - 27 October
            described the “steady improve-             “more open content approach”,           tomers, compared to 137,000            Venue: Johannesburg, South
            ment in the video business”                Fries said: “I think it’s partially     in the first half of 2016 and          Africa
            as one of Liberty’s “untold sto-           the fact that we do provide in          171,000 in the first half of 2015,     W: 10times.com/discop-africa
            ries”. He said that a number of            almost every market all of the          according to the presentation
            factors are contributing to the            content that could be, and is,          that it issued to accompany the        TV Connect MENA
            improved performance of vid-               desired by customers. That’s a          earnings call.                         Date: 30 - 31 October
            eo, including “slower-than-an-             positive. You don’t have to give           “If you remove the small            Venue: The Address, Dubai
            ticipated adoption” of OTT ser-            up or sacrifice anything.”              DTH business in Central and            Marina, Dubai, UAE
            vices in Europe.                              This, he said, worked in the         Eastern Europe, our video sub          W: tmt.knect365.com/
               “That’s a positive for us due           company’s favour in combi-              base was actually flat year-over-      tv-connect-mena/
            to a fragmented content mar-               nation with low video ARPU              year,” said Fries.
            ket, the strength of broadcast             compared to the US, targeted               Liberty’s total video base          TV Connect Africa
            networks and a very inexpen-               and cost-efficient investments          stood at 18.55 million in Q2.          Date: 7 - 9 November
            sive cable or pay TV video of-             in sports, and an “OTT picture          This breaks down to 14.26 mil-         Venue: Cape Town International
            fering when you compare it to              that is both fragmented and I           lion in Western Europe and             Convention Centre, Cape Town,
            the US,” said Fries.                       think, depending on the mar-            4.28 million in Central and            South Africa
               Asked whether Liberty’s                 ket, not gaining a whole lot of         Eastern Europe and was up              W: tmt.knect365.com/
            strong video performance was               traction”.                              0.4% compared to Q1.                   africacom/tv-connect-africa/

          Visit us at www.digitaltveurope.com

                                                                                                                                                                     5
p04-05,08,10,12 DTVE News Digest AugSep17v4st.indd 5                                                                                                                 05/09/2017 17:58
ESports direct A game changer for TV? - August/September 2017 - Digital TV Europe
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ESports direct A game changer for TV? - August/September 2017 - Digital TV Europe
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ESports direct A game changer for TV? - August/September 2017 - Digital TV Europe
News > digest                                                                                                                             Digital TV Europe
                                                                                                                                               August/September 2017

                                                                                              and has confirmed its plans to          estimates, and is looking at re-
           Global Wrap                                 Germany                                move ahead with a company-wide          structuring its business, including
                                                                                              rebrand this quarter. The company       combining its German broadcast
           The number of North American                CAB > Tele Columbus PŸUR               posted revenues of €245.4 million       and digital arms. It could seek
           SVOD subscriptions is due to                Cable operator Tele Columbus           for the first half, up 4%. Normal-      investment partners or to spin off
           grow by 53% between 2016                    is to rebrand all its units under      ised EBITDA was €123.5 million,         its production and commerce ac-
           and 2022, according to Digital              the name PŸUR in October. Tele         up 7%. The group added 14,000           tivities. The broadcaster said it had
           TV Research. The study claims               Columbus said that the name was        internet revenue-generating units       started a review to align its internal
           that the number of people                   designed to convey its emergence       and 15,000 telephony RGUs in the        structure to the changes taking
           subscribing to TV and movie                 from a collection of regional          second quarter. At the end of June,     palce in the media landscape and
           platforms will climb from 122               entities into a national TV enter-     the company had 2.39 million ba-        to maximise shareholder value.
           million in the region at the end            tainment, internet and telephony       sic cable TV customers, including       One possibility is a combination of
           of 2016, to 171 million by 2022.            provider. The brand will be rolled     430,000 premium TV RGUs. Timm           its German-language broadcasting
           Turner is to launch a new stan-             out across the Tele Columbus and       Degenhardt, formerly the chief          activity with its digital entertain-
           dalone premium sports stream-               Primacom regions of northern,          commercial officer of Switzerland’s     ment segment. This would be
           ing service in the US after                 western and eastern Germany            Sunrise, who it to take over as CEO     expected to realise “meaningful
           acquiring European Champions                from October. The Pepcom Group,        next year from Ronny Verhelst,          cost synergies”, the group said.
           League and Europa League                    with its Cablesurf and KMS brands,     joined the company on August 14.        ProSiebenSat.1 said it could look
           football rights for the three               present in southern and central                                                at options for its production and
           seasons from 2018. The OTT                  Germany, will be rebadged from         PROG > Pro7Sat.1 warning                commerce units including third
           sports service will launch next             the first quarter of next year. Tele   Broadcaster ProSiebenSat.1 Group        parties co-investing or combining
           year, with European football as             Columbus has reiterated its tar-       has warned that TV advertising          businesses. It said it was also
           a key element in its offering.              gets for the end of this year after    revenues for the third quarter are      mulling potential future public
           The Walt Disney Company is                  turning in solid first-half results,   likely to come in under previous        listings for these units.
           looking to cut around 10% of
           annual costs at its Disney-ABC
           Television arm, potentially                 Disney strikes deal with Iflix after cutting Netflix
           affecting 300 jobs. The ABC US
           broadcast network, production               By Stuart Thomson >                                                              Iflix’s deal with Disney, in ad-
           arm ABC Studios and ABC                                                                                                   dition to covering content distri-
           News are expected to take the               Disney, fresh from pulling out                                                bution and early window movie
           biggest hits, with cable chan-              of its distribution agreement                                                 rights, will also see the two com-
           nels ABC News, Freeform and                 with Netflix, has signed up to                                                panies collaborate around a pro-
           Disney Channel also affected.               provide a branded channel on                                                  ject with Disney’s multichannel
           Australia’s leading pay TV                  the streaming video outfit’s                                                  network arm Maker Studios.
           platform, Foxtel, is merging                Asian rival Iflix.                                                            This will revolve around the
           with its News Corp cousin Fox                  Disney       has     struck  a      and Disney shows including             creation of new content to be
           Sports Australia to create a                wide-ranging deal with the Ma-         Frozen, Wreck-It Ralph, Cars,          released as an exclusive Iflix
           new regional powerhouse. The                laysia-based subscription vid-         Lilo & Stitch, The Jungle Book and     original.
           move will see Rupert Murdoch’s              eo-on-demand company that              Cinderella to Iflix users.                The agreement with Iflix
           News Corp becoming 65%                      will see it provide a branded             Further titles will arrive on       comes two weeks after Disney
           majority shareholder of the                 channel on Iflix’s platform fea-       the service next year, including       announced that it was pulling
           new business, with Australia                turing Marvel and Pixar movies         Star Wars: The Force Awakens,          all its movies from streaming
           telecommunications business                 as well as Disney shows.               Captain America: Civil War, The        giant Netflix to launch its own
           retaining the other 35%. PCCW                  Iflix said the deal would mark      Jungle Book, Tangled, Finding          branded SVOD service when
           Media has raised US$110 million             the debut of a new ‘channels’          Dory, Finding Nemo and The In-         the pair’s agreement expires in
           (e92 million) from Hony Capi-               feature on its service.                credibles!.                            2019.
           tal, Foxconn and Temasek, who                  The agreement will initially           In addition to Disney kids             Disney said it would make
           become investors in its interna-            bring Marvel Studios movies in-        content such as Sofia the First        its future theatrical releases,
           tional OTT services, including              cluding Guardians of the Galaxy,       and Star Wars Rebels, the deal         original and library program-
           Viu. The investment hands the               Captain America: The Winter Sol-       will also extend to ABC Studios        ming available via a new, as yet
           investors around 18% of shares              dier, Thor: The Dark World and         shows such as Scandal, Grey’s          unnamed service, initially to
           in PPC unit PCCW OTT, which                 Iron Man 3, Pixar Animation            Anatomy, Criminal Minds, Devi-         launch in the US alongside its
           will use the cash on production             films such as Monsters Inc, Mon-       ous Maids and Marvel Agents of         planned branded ESPN sports
           of content and technology.                  sters University, Up and Wall-E,       S.H.I.E.L.D.                           subsription streaming service.

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          8
p04-05,08,10,12 DTVE News Digest AugSep17v4st.indd 8                                                                                                                    05/09/2017 17:58
pXX Intelsat DTVE AugSep17.indd 1   29/08/2017 10:41
News > digest                                                                                                                                Digital TV Europe
                                                                                                                                                  August/September 2017

          PROG > Digital boosts RTL                     solidation of ad technology units                                               could be provided direct-to-consum-
          Digital revenues boosted RTL’s reve-          Smartclip and Divimove. Production      Spain                                   er or via agreements with service
          nue performance in the second half,           arm FremantleMedia performed                                                    providers, according to the paper’s
          with the broadcaster also seeing              well, delivering a €30 million uplift   OTT > Telefónica plan                   sources. Telefónica has existing
          solid growth from production arm              in revenues year-on-year despite        Telefónica is mulling the launch        operations in the UK and Germany
          FremantleMedia and its German                 the absence of American Idol            of a Netflix-like OTT TV service to     that it could use to test out the con-
          and French broadcasting opera-                in the first half. American Gods        target an international audience,       cept. The service would reportedly
          tions. However, RTL’s EBITDA was              helped provide a boost for RTL          according to a report in El País        only be available in Europe and
          pushed down by the phasing out of             in the second quarter, with the         newspaper. According to El País,        be populated with Movistar’s own
          M6’s mobile contract in France and            group’s revenue growing by 8.8%         Telefónica is looking at taking its     productions – principally, though
          lower advertising revenue in the              in the three months to June. RTL        content to subscribers in countries     not exclusively, those being made in
          Dutch market. Digital revenue grew            Deutschland saw revenues rise by        such as the UK and Germany where        Spain. The project would however
          by 47.4% year-on-year to €389                 €36 million in the first half, while    its Movistar+ pay TV service is not     be developed by Telefónica as a
          million, driven by organic growth at          M6’s revenues grew by €16 million.      available. The group is looking at      global entity rather than its Spanish
          MCNs BroadbandTV and StyleHaul,               Platform revenue grew by 18.7%          offering a streaming SVOD service       unit, and could include content
          the sale of its series American Gods          to €159 million. Reported EBITDA        similar to Netflix or HBO Now, pro-     created by its Latin American sub-
          to streaming service Amazon Prime             was down 7.4% to €362 million.          viding unlimited access to content      sidiaries, such as shows and series
          Video and the first-time full con-            Adjusted EBITDA was up 4%.              at a competitive price. The offering    being developed in Peru.

           Canal+ needs level playing field, says Vivendi chief
            By Stuart Thomson >                                             De Puyfon-             Canal+’s revenues declined           C8 channel. Production outfit
                                                                            taine: Canal+       by 2.4% during the first half, an       Studiocanal’s revenues also
            Canal+ needs a level playing                                    in urgent need      improvement compared with               dropped year-on-year.
            field to compete with the likes                                 of a revision       the 5.5% drop in the first half of         Canal+’s EBITA for the first
            of Altice as well as Netflix and                                of the rules.       2016. The pay TV operator’s im-         half amounted to €171 mil-
            other international players, in-                                                    provement was more marked in            lion, down from €288 million
            cluding the right to retain exclu-                                                  the second quarter, with a drop         year-on-year, but with a strong-
            sive rights, according to Vivendi                                                   of 1.3% compared with a drop of         er performance in the second
            CEO Arnaud de Puyfontaine.                  nal+ remains obliged to make            3.5% in the first quarter.              half, which saw EBITA double
               Speaking to analysts after               any service with which it has              Canal+’s revenues for the            compared with the first three
            Vivendi turned in solid first-half          an exclusive deal available to a        first half of the year amounted         months of the year.
            results, boosted by a strong per-           third-party provider that wants         to €2.568 billion.                         Separately, De Puyfontaine
            formance by Universal Music as              to include it in its offering.             The pay TV outfit’s individ-         said that Vivendi is committed
            well as signs of a slowing down                De Puyfontaine said that in          ual subscriber base increased           to help build Telecom Italia into
            in the decline of Canal+, De                an industry that is “highly dis-        by 2.8 million year-on-year to          a quad-play leader and lead it
            Puyfontaine said Canal+ had to              rupted”, there was an “urgent           14 million, thanks to continued         to “long-term and sustainable
            compete with “a local telco that            need” for a revision of the rules.      international growth and the            growth”. He said that TIM was
            wants to control both telecom-              However, he said Vivendi had            group’s new distribution deals          committed to deliver large-scale
            munications and content and                 hoped for “a greater release of         with Orange and Free.                   investment in broadband.
            is launching a movie channel                constraints” than the Autorité             The international subscriber            De Puyfontaine said that TIM
            from Luxembourg”, and that it               de la Concurrence had granted.          total grew by 309,000 year-on-          had “once upon a time” been a
            was necessary that “everybody                  The “local telco” De Puyfon-         year in the first half, contribut-      “best-of-breed player in the Eu-
            gets to benefit from the same               taine referred to was Altice,           ing to a 6.6% increase in reve-         ropean telco business” but had
            rules” regarding the right to               which recently launched mov-            nues in constant currency.              unfortunately been allowed to
            strike exclusive content deals.             ies and series channel Altice              Revenues from pay TV in              go into decline, with the compa-
               France’s competition watch-              Studio, available on SFR.               France dropped by 5.3%, taken           ny more recently seen as a “prey
            dog relaxed a number of re-                    Vivendi’s second quarter and         lower by the reduced free-to-air        rather than a hunter”.
            strictions on Canal+ in June,               first half results were strongly        window on the Canal+ channel               He said Vivendi’s objective
            allowing it to strike exclusive             boosted by the performance of           and a drop in domestic sub-             now was to “make Telecom Ita-
            premium channel deals with                  Universal Music, which grew             scriber revenues. Advertising           lia great again for the benefit of
            the likes of BeIN Sports and to             its revenues for the first six          revenue also fell, due in part          Italy and Italian customers, and
            retain exclusivity of series that           months of the year by 14% in            to a sanction imposed by me-            perfectly aligned with the plan
            it pre-finances. However, Ca-               constant currency terms.                dia watchdog the CSA on the             of the [Italian] government”.

                                                                                                                                       Visit us at www.digitaltveurope.com

          10
p04-05,08,10,12 DTVE News Digest AugSep17v4st.indd 10                                                                                                                     05/09/2017 17:58
Q&A: Dr Neale Foster, ACCESS Europe
        Dr Neale Foster, Managing Director and COO, ACCESS Europe talks about the challenges of delivering a consistent user
        experience and his company’s work with Reliance Jio Infocomm
       What are the main client-side technology requirements to support                 social media content, and supports media sharing and the consumption
       a consistent user experience across multiple screens both inside and             of private content from Dropbox, Google Drive, Jio Drive and more over
       outside the home?                                                                the Jio User Interface. Reliance Jio Infocomm wanted to seamlessly
       For a consistent user experience on the client side, operators need              integrate all the different content sources and combine this feature with
       technologies able to provide the same functionality, layout and experience       the ability to place-shift content across all registered devices. In addition,
       on radically different devices, regardless of the connectivity used. This        due to the sheer geographical distances in India, the service provider
       goal is currently achieved by the NetFront browser family of ACCESS,             wanted to ensure that it offered its subscribers the possibility to upload
       which provides a series of browser models supporting all different kinds         private content to the Jio Drive and share it seamlessly with friends and
       of screens - from small IoT devices, set top boxes and smart TVs up to fully     loved ones who were unable to attend a social occasion. This includes
       featured mobile devices or even computers. The standards-based, HTML5            the seamless support for remote access to all content on the go, enabling
       compliant browsers allow for a seamless user experience to combine               consumers to access all their content whenever and wherever they want,
       responsive, intuitive design with support for the latest industry standards      and on their preferred devices. This was achieved through ACCESS Twine,
       like HbbTV and FreeView Play, as well as video playback up to 4K and 8K.         which enabled Jio to increase stickiness to its service by integrating all
                                                                                        requested features and providing the full access to the Jio media offering.
       What are the challenges faced by service providers in integrating
       delivery of video services across multiple devices and platforms and             What do you consider to be Reliance Jio Infocomm’s most innovative
       what technology solutions are available?                                         applications and what were the main challenges faced in implementing
       Besides the client side diversity, operators also have to meet all back-end      these?
       video delivery challenges across multiple devices and platforms. There           The idea behind the Reliance’s ‘digital lifestyle’ experience was to offer
       are a lot of different device classes on the market, each of them requiring      a one-stop shop for all media content, be it public, private or premium.
       specific technology. In general, they differ in three domains: applicable AV     This new trend echoes consumers’ media consumption, which consists in
       codecs, supported streaming protocols, and Conditional Access/Digital            multiple different content sources accessed via a wide range of platforms
       Rights Management solutions.                                                     and devices - be it set top boxes, smart TVs, mobile devices, computers
          To solve these challenges seamlessly requires a centralised user              or any other device used on the go, such as the connected car, handheld
       management system including single-sign-on, a sophisticated encoder              game consoles or IoT enabled devices.
       and streaming server infrastructure and so-called multi-DRM solutions,              Through the use of ACCESS Twine, Reliance was able to leverage its Ipv6
       which can serve all necessary protection technologies. Although still fairly     network servicing over 100 million consumers with a service combining
       uncommon, this approach allows end devices to interact which each other          the cloud with remote access functionality.
       seamlessly, including place-shifting of protected premium content across
       all different device classes. Here ACCESS Twine helps operators to solve the     How important are cloud-based technologies in delivering a next-
       “last step” fragmentation issue by detecting the device’s capabilities and       generation TV experience and what elements require device-based
       brokering the right content from the service, to support the standards-based     technologies?
       place-shifting feature. For protected content, we support content rights         The combination of cloud-based and device-based technologies is the best
       management through the Verimatrix VCAS and ViewRight technologies.               way to simplify the delivery of complex next-generation TV experiences.
       This eases up the development of new extended business models by the             At present, the cloud is the only way of providing every subscriber with
       service providers – effectively, protected content is no longer limited to one   high performance aggregated search on all internal and external content.
       device or proprietary solutions for each device class – while maintaining the    Cloud support is also necessary for remote access and adding third
       end-to-end encryption requested by content owners.                               party IoT services, like Amazon Alexa. However, the cloud can only be
                                                                                        effective if the necessary devices and technologies can cooperate – which
       What were the main objectives set by India’s Reliance Jio Infocomm in            needs to be managed at the device level. Therefore, it is fundamental
       creating its ‘digital lifestyle’ experience?                                     for technologies that deliver next generation TV Everywhere services to
       Reliance Jio Infocomm provides a wide variety of media offerings within          harmonise the power of the cloud and each individual consumer device.
       its ‘digital lifestyle’ experience, such as regional premium video content,
       e-magazines and more. The service also provides access to YouTube and            ACCESS will exhibit at IBC 2017 on stand #14.D14.

p11 Access Q&A DTVE AugSep17.indd 2                                                                                                                             01/09/2017 17:43
News > digest                                                                                                                                 Digital TV Europe
                                                                                                                                                   August/September 2017

          OTT > AMC OTT plan                            information as the project is still      music service Sol Música. Other          The service is targeted primarily at
          Interntional channels providerAMC             being worked on. The media group         channels to be included are Dark,        the growing population of young
          Networks Iberia is planning to                did confirm that the service will be     Historia, and History Channel Iberia     mobile consumers in the region,
          launch a new streaming service                available only via pay TV operators,     joint ventures A&E and Crime &           offering four packages covering
          in Spain, in partnership with pay             and said the content line-up was         Investigation. The service will also     sport, entertainment and movies.
          TV distributors, according to local           still being worked on. According         include two JV channels with Por-        Wavo Entertainment is available
          reports. A promo for the service              to El Español newspaper, the new         tugal’s NOS, Biggs and Blast, and        for US$9.99 a month (€8.50),
          was recenlty posted on YouTube,               service will only be available via pay   its SVOD JV with YouTube network         while the movies option is priced at
          advertising a mix of channels and             TV platforms such as Vodafone,           Machinima, according to the report.      US$6.99. Wavo Sports is available
          on-demand content for €6.99                   Orange and Movistar, at a price to       El Español said the service will also    for US$4.99 a day or US$7.99 a
          a month. The service advertises               be set by the operator. Unlike pure      include video-on-demand series.          week. OSN is also offering a service
          itself as offering content in 4K              OTT player such as Netflix, AMC is                                                dedicated to WWE wrestling – The
          UHD, available on mobile, tablets,            planning to offer linear channels                                                 WWE Network App – for US$9.99 a
          PCs and TVs. The voiceover to                 as part of its streaming service,        UAE                                      month. OSN said the launch of the
          the YouTube video said that the               offering 17 channels covering                                                     new streaming service was part of
          service will make available “the              different thematic areas. According      OTT > OSN launches Wavo                  its ‘new OSN’ strategy launched in
          best channels and thousands of                to El Español, the line-up includes      UAE-based Middle East pay TV             February of this year. The company
          programmes on-demand for only                 series-focused AMC, movie channel        platform OSN has launched a new          revamped the offering with new
          €6.99 a month”. The promo video               Canal Hollywood, independent             streaming service, Wavo, available       packs and new price points in the
          gave no information regarding                 movie channel Sundance, telenove-        on the Apple App Store and Google        wake of an extensive customer
          distribution. AMC separately told             las channel Somos, factual network       Play. Wavo offers a mix of live and      research project across 40,000
          DTVE it was not responsible for               Odisea, cooking channel Canal            catch-up TV, movies, series and a        homes in the region, providing
          the YouTube posting of the promo,             Cocina, lifestyle channel Decasa,        mix of western and Arabic content,       more flexible offers than had hith-
          and said it may contain incorrect             kids channel Canal Panda and             according to the pay TV outfit.          erto been available.

           Ofcom submits new advice after Bradley requests Sky clarification
            By Stuart Thomson                           er had said that submissions                                 Bradley:             from sexual harassment scan-
            & Andy McDonald                             made in relation to 21st Century                             requested            dals at Fox News, 21st Century
                                                        Fox’s planned acquisition of Sky                             additional           Fox has recently become em-
            Regulator Ofcom has submit-                 “raise new evidence” and asked                               advice and           broiled in fresh controversy over
            ted additional advice on the                Ofcom to take a fresh look at the                            clarification        allegations that Fox News gave
            proposed merger between 21st                agreement.                                                   from Ofcom.          advance notice to the White
            Century Fox and Sky to the UK                  The UK department for dig-                                                     House over a subsequently
            government. The broadcast                   ital, culture, media and sport                                                    discredited story involving the
            regulator made the submission               (DCMS) said a number of rep-                In her statement to par-              hacking of Democratic Nation-
            to secretary of state for digital,          resentations made to it “raise           liament on July 20, Bradley              al Convention emails and the
            culture, media and sport, Karen             new evidence and/or comment              said that the Ofcom evidence             death of a DNC campaigner.
            Bradley, with the advice due to             on the Ofcom assessment” and             was “clear” on broadcasting                 Ofcom could face a judicial re-
            be published “in due course”.               that it was seeking “further clari-      standards that “there were no            view of its ruling that Sky would
               The move comes after Brad-               fication” in relation to those rep-      grounds on which I can refer”            remain a “fit and proper” holder
            ley requested “advice and clar-             resentations.                            the bid. However, she said she           of a UK broadcast licence if 21st
            ification” earlier this month in               The decision to seek further          would look at any new evidence.          Century Fox’s bid to take control
            light of representations made in            clarification from Ofcom relates            A number of UK politicians,           of the pay TV operator is given
            relation to the proposed merger.            to Fox’s adherence to broadcast-         including former Labour Party            the green light.
               “The Secretary of State will             ing standards.                           leader Ed Miliband and shadow               Advocacy group Avaaz hired
            now carefully consider that ad-                Bradley had earlier said that         culture spokesman Tom Wat-               lawyers Hausfeld to present a
            vice before making her decision             she was “minded” to refer Fox’s          son, have called for a reopening         ‘letter before claim’ to the UK
            on referral on the basis of all the         bid to competition regulator the         of the investigation of the broad-       media regulator – a first step
            evidence before her, and will do            CMA on the grounds of media              casting standards question –             in the judicial review process –
            so as soon as is reasonably prac-           plurality, but that she was satis-       calls that have become louder            highlighting what it claims to be
            ticable,” said the government in            fied with Ofcom’s assessment             following recent events related          “fatal flaws” in Ofcom’s reason-
            a statement.                                that the deal did not raise broad-       to Fox News in the US.                   ing that Sky would remain a ‘fit
               The UK government earli-                 casting standards concerns.                 Still dealing with the fallout        and proper’ holder of a licence.

                                                                                                                                         Visit us at www.digitaltveurope.com

          12
p04-05,08,10,12 DTVE News Digest AugSep17v4st.indd 12                                                                                                                     05/09/2017 17:58
See us at
               IBC
        September 14-19, 2017
                                                     Our beams cover billions of viewers.
             Amsterdam
          Hall 1, Booth C65                          Our focus is only on you.

     More Coverage. More Throughput.
     More Services. Across the Middle East,
     Europe, Africa and Asia.
     Spacecom’s AMOS satellite constellation, consisting of AMOS-3 & AMOS-7
     co-located at 4°W and AMOS-4 at 65°E, provides high-quality broadcast and
     communications services across Europe, Africa, Asia and the Middle East.
     With AMOS-17 planned for launch to 17°E in 2019, Spacecom will further
     expand its reach, reinforcing its position as a leading satellite operator.   www.amos -space com.com

pXX Amos Spacecom DTVE AugSep17.indd 1                                                               25/08/2017 15:35
Technology focus > eSports                                                                                                     Digital TV Europe
                                                                                                                                   August/September 2017

                   TV plays the
                  millennial game

          The meteoric rise of eSports has caught the attention of TV operators and
          broadcasters. They are investing in rights and dedicating airtime to gaming. But how
          likely is this to win back millennial viewers? Andy McDonald reports.

          Online               gaming has transformed
                               in recent years from
          a pastime typically associated with young
                                                           all made eSports investments, while increased
                                                           broadcaster interest is making rights more
                                                           competitive than ever.
                                                                                                            associated price tag, highlighted not just the
                                                                                                            popularity of eSports in its then-current form,
                                                                                                            but also the vast growth potential of this market.
          adult males into a multi-million dollar global      But with the massive established reach of
          industry. eSports has grown out of bedrooms      digital platforms like Twitch and YouTube,
          and into arenas, with the spectator element      is there a place for eSports on TV and can       Targeting the youth market
          fuelled by the success of online viewing         broadcasters and operators lure millennial
          platforms.                                       eyeballs away from online streaming and social   Today Twitch claims 2.2 million unique
             Unsurprisingly, the TV industry has taken     media platforms?                                 broadcasters each month and 10 million daily
          note of these trends and is looking to tap          eSports exploded into the consciousness of    active visitors, who spend an average of 106
          into the increasingly popular and lucrative      many broadcast-industry watchers in August       minutes per person, per day on the site. “Our
          world of gaming. Companies ranging from          2014, following Amazon’s US$970 million          core demographic is 18-34 year olds, roughly
          Modern Times Group (MTG) in the Nordics,         (e816 million) cash buyout of videogame          70% male,” Twitch’s vice-president of sales
          Telefónica in Spain, and Sky in the UK have      streaming platform Twitch. The deal, and its     for Europe, Steve Ford, tells Digital TV Europe.

                                                                                                                       Visit us at www.digitaltveurope.com

          14
p14-17 eSports DTVE AugSep17v4am.indd 14                                                                                                                  04/09/2017 19:31
Digital TV Europe                                                                                                     Technology focus > eSports
          August/September 2017

          ESL One New York, held in the Barclays               strategy. In 2015 the company fully acquired         replicate eSports’ online success on TV, both by
          Center, is one of ESL’s many events.                 Sweden-based Dreamhack for some US$28.2              attracting millennial viewers to television and
                                                               million and launched linear TV channel               by opening up eSports to a wider audience. But
          “This tends to be the same profile as the cord-      eSportsTV, and Benninghoff says more                 how big a challenge is it to succeed in either
          cutters and cord-nevers in a lot of markets.”        investments could follow. “We are prepared,          scenario?
             The combination of a difficult-to-reach           over the next two-to-three years at least, to grow      In September 2016, Sky and ITV each
          audience and a healthy market is arguably            the business through further M&As, so there          pledged £1.55 million (e1.7 million) of
          what is driving broadcasters and TV operators        is a clear commitment,” he says. “This could         investment into eSports broadcaster Ginx,
          toward eSports in increasing numbers.                be more technology-driven investments, or            which claims to be the biggest international
             Earlier this year, eSports market intelligence    content creation, or just talent acquisition.”       eSports channel with a reach of 50 million
          company, Newzoo, estimated that the eSports             Speaking on the phone from ESL’s UK’s             households. Sky’s group director of business
          economy will grow 41.3% year-on-year in 2017         base in Leicester, UK managing director James        development and partnerships, Emma Lloyd,
          to reach US$696 million. Its 2017 Global             Dean says that MTG’s initial interest in ESL was     describes the investment as a response to
          Esports Market Report estimated that brands          likely down to “the fact that we’re reaching a       “eSports market demand for linear coverage, to
          would spend US$517 million this year on              digital, millennial audience”. However, he also      complete availability across all platforms”.
          eSports advertising, sponsorship and media           puts it into the context of MTG’s broader digital       Lloyd says the Ginx investment gives Sky
          rights. This is expected to double by 2020,          portfolio and adds that “there’s obviously a         insights on the creation of eSports content
          pushing the total market to US$1.5 billion.          synergy between eSports and sports products”.        “from the inside out” and claims there is value
             While the opportunity is clear, the ways             Dean says that Twitch is still the number one     in bringing together eSports content across
          into the eSports market are not, and different       platform for people to tune into ESL – despite a     traditional platforms, as well as accessing it for
          players across the European broadcast space          lot of short-form content going up on Facebook       use on TV, digital and social networks.
          are taking different approaches – variously          and Twitter, and despite YouTube’s efforts              “It’s important to remember that Sky is
          investing in eSports content rights, eSports         in the eSports space. A year after Amazon’s          a quad play provider, not just a television
          broadcasters, and directly into the eSports          buyout of Twitch, YouTube went head-to-head          business, so the field of opportunity to bring
          organisations that run tournaments.                  with the service by rolling out its own dedicated    eSports to audiences across platforms and
             MTG was one of the first companies from a         YouTube Gaming service and earlier this year         devices is much wider for us than for some
          TV background to make a decisive move into           it agreed to exclusively broadcast the ECS           competitors,” says Lloyd.
          eSports. In 2014 the Nordic firm launched its        Counter-Strike: Global Offensive league.                Despite this, Lloyd sees a place for eSports
          own eSports streaming platform, Viagame,                “YouTube has a lot of catching up to do with      as a televised sport – even if it doesn’t compare
          with a mix of licensed content and content           Twitch, so I guess one way you could approach        with the likes of football and rugby. “eSports
          from regional eSports company Dreamhack.             that is to say ‘well let’s buy exclusivity for the   caters for global, individual viewing across
          However, Arnd Benninghof, the head of                largest CS Go League in the world, which             connected devices, while linear TV remains the
          MTG’s digital division MTGx, says that it soon       creates a huge amount of viewership,” says           most popular way to watch traditional sports,”
          became clear “it was not really a smart strategy     Dean. “If it was streamed on Twitch as well, I       she says. “But with demographic changes
          to compete with Twitch. That was the point           think you would be hard-pushed to move those         and the visual quality of live eSports streams
          when we decided to invest in a league operator.”     viewers across, despite the YouTube platform         constantly improving, we might see eSports
             In July 2015 MTG paid around US$87                being very good. The community sticks around         become a communal viewing experience on
          million for a 74% stake in Cologne-based             because they’re used to it.”                         TV similar to traditional sports.”
          eSports specialist Turtle Entertainment, which                                                               Last year Sky broadcast highlights from
          owns and operates some of the world’s largest                                                             ESL’s Intel Extreme Masters tournament on
          eSports brands under the name ESL. This gave         Widening the appeal                                  Sky 2, showing footage of games like CS: Go
          MTG majority control over leagues like ESL                                                                and League of Legends on an entertainment
          Pro League and events such as ESL One and            Discussing TV’s wider interest in eSports –
          Intel Extreme Masters (IEM) and from today’s         with operators like Sky and BT all now getting
          perspective looks to have been an extremely          in on the action – Dean says: “I personally think
          shrewd investment. This year’s IEM World             they had to try it; it had to be an experiment.”
          Championship in Katowice, Poland attracted           In relation to Sky and ITV’s involvement
          173,000 fans to the Spodek Arena over the            with Ginx, and many other examples across
          course of two weekends. It was also the most         the world, he says: “I think really what we’re
          broadcast event in ESL’s history, reaching more      witnessing is the fact that they have to test the
          than 46 million unique viewers online – up           water. Until the ratings come out, we’re not
          35% compared to last year’s event.                   going to know whether it works or not.”
             Benninghof compares the ESL to a                     Broadcasters and operators are hoping to
          “Champions League brand” and Viagame
          now redirects to an ESL TV branded site, yet         Starcraft II champion Jun ‘TY’ Tae Yang
          this is all still just one aspect of MTG’s eSports   at Intel Extreme Masters, Katowice.

          Visit us at www.digitaltveurope.com

                                                                                                                                                                15
p14-17 eSports DTVE AugSep17v4am.indd 15                                                                                                                          04/09/2017 19:31
Technology focus > eSports                                                                                                             Digital TV Europe
                                                                                                                                           August/September 2017

          channel that also plays host to drama and           competing in three games – Street Fighter V,          reaching both its young target audience and
          comedy. However, when Ginx launched                 Counter-Strike: Global Offensive, and Rocket          new viewers that previously weren’t familiar
          on the Sky platform last summer, it took            League – and Eleven will show the coverage            with eSports. “Television is a more ‘accessible’
          channel number 470 in the sports section of         in all seven markets where it is active, which        means to reach new family audiences,” said the
          its electronic programme guide – between            includes Poland, Belgium, Luxembourg and              Telefónica representative, explaining it can play
          greyhound racing channel Front Runner 2 and         Italy in Europe.                                      a ‘socialising’ role between parents, children
          Formula 1 channel Sky Sports F1.                       “Why did we acquire it? Because first of all we    and fans of eSports. “In order to reach new
             Ginx CEO Michiel Bakker, says the sports         believe that eSports is on the rise significantly     audiences we are committed to an editorial
          team at Sky drove the investment in Ginx as a       and globally,” explains Eleven Sports’ group          tone that helps to democratise and facilitate the
          way to make a first move into eSports. “Ginx        managing director, Danny Menken. “Gfinity             understanding of eSports, its competitions, its
          eSports TV is packaged in the sports section        has organised more than three million gaming          rules, its jargon or expressions.”
          of the Sky EPG and the channel brings more          sessions, which have achieved more than                  MTG takes a similar view of its esports TV
          millennials to that section, which is part of the   one million views to date. Those are quite            channel. MTGx boss Benninghoff accepts
          rationale for investing.”                           significant numbers and it really shows that          that for the avid gamer, TV is probably “less
             For Bakker there is a clear opportunity          there is a market for it.”                            relevant” as they find their content and stories
          for eSports on television. He says there are           Menken says another major factor in                within the eSports world. “Over recent years,
          roughly 200 million eSports enthusiasts             licensing eSports is that its cable and IPTV          eSports was very much driven by live streams
          around the world and another 200 million            provider clients are “looking for millennial          from live events,” he says. “What we’re trying
          eSports ‘viewers’ – with both groups having         content” to appeal to cord cutters, or those that     to do is add shoulder content – documentaries,
          grown by “meaningful double-digit numbers”          never had a cord to cut. “eSports is exactly the      background stories, analysis and so-forth, to
          in the past five years. “Roughly 70% of those       type of content which is attractive for this target   make it more appealing to a broader audience.”
          two groups are millennials and they consume         group.”                                                  This idea of building on the popularity of
          vast amounts of content across multiple                                                                   eSports with content that can live on TV has
          touch-points,” he says. “In the US, eSports                                                               also started to apply outside the strict confines
          viewing has overtaken traditional sports like       A new type of storytelling                            of a dedicated eSports channels. Youth
          ice hockey. Now Television is bringing in a                                                               broadcaster The QYou has identified what it
          new mainstream audience to help fuel that           In Spain, Telefónica’s commercial brand               believes is a “fertile field” for content related
          growth. I’d say it’s a hugely significant part of   Movistar last year announced it was integrating       to eSports, with co-founder and CEO Curt
          millennial media consumption.”                      electronic games into “the core of its strategy”      Marvis explaining that eSports is in the top
             Ginx is UK-based but the channel, which          after signing a deal with ESL. It now distributes     four categories of programmes it is looking to
          broadcasts 24/7, is available around the world,     eSports digitally through its Movistar+ platform,     create from now on. He says this opportunity
          including much of Europe. Most of Ginx’s            and on TV via a dedicated Movistar eSports            lies around the lifestyle of eSports – “everything
          output is exclusive for TV, but Bakker describes    channel, as well as on Movistar Deportes 1 and        from fashion, through the ancillary interests of
          it as ‘leaky’ with some shows simulcast across      2. Movistar also created Movistar Riders, an          the gamers, to the personalities involved”.
                                                                                                                       “As a company, we’re not focused on
                                                                                                                    the live event broadcasts for a number of
                              “We might see eSports become a communal                                               reasons,” says Marvis. “That’s not really what
                                                                                                                    we do as a company, that’s one reason. The
                              viewing experience on TV similar to                                                   second reason is frankly that the rights are
                              traditional sports.”                                                                  becoming extremely expensive and being left
                                                                                                                    to a different group of buyers and channels that
                                                                                                                    are interested in that, some even being those
                              Emma Lloyd, Sky                                                                       that are typically showing Champions League
                                                                                                                    [football] and those types of events.”
          Twitch and other digital platforms and some         eSports club made up of various professional
          content produced only for the web. “In that way     video game teams, which is headquartered in
          we try to build a bridge between the online and     the Movistar Gaming Centre in Madrid.                 Bigger industry shifts
          linear TV worlds. That audience flow is part of        In Telefónica’s eyes the coverage and
          the attraction of the channel for cable, IPTV       quality of its fibre broadband has helped spur        While eSports has grown up in recent years,
          and satellite platforms.”                           growth in the games sector in recent years.           at the same time there has been some debate
             Eleven Sports is a linear broadcaster that       It is now tapping into that growth from an            about the abiding popularity of traditional
          has recently moved into eSports after striking      entertainment standpoint, adding eSports              sports among younger viewers. A study by
          a wide-ranging deal with eSports outfit Gfinity     alongside its traditional sports offering of          Ampere Analysis last year claimed that interest
          to air live, exclusive competition gaming from      football, basketball, cycling, MotoGP and F1.         in sport among young millennials is “on the
          its Elite Series events. Gfinity’s Elite Series        A spokesperson for Telefónica told DTVE            decline” with many viewers lured away from
          brings together eight professional teams            that through its different platforms eSports is       sport by the wealth of other TV and online

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p14-17 eSports DTVE AugSep17v4am.indd 16                                                                                                                          04/09/2017 19:31
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