1. Network Insight Seminar Interactive TV Session 1 – Planning for the Future in light of trends/expereince Mark Hughes Partner, Digital TV and Broadband Ph. 02 9005 5565/0413 809 088

2. © Accenture 2001 - 2 - Driving Forces for DTV There are four driving forces that are propelling the growth of digital TV. Driving Forces Competition Regulation Customer Needs Technology & Convergence Grab for premium content Competitive digital products/ services (DBS,CATV,DTT, internet, DVD, games) Telcos expanding into new markets (VDSL, ADSL) Consolidation to achieve economies of scale Intensity of Competition Increasing customer buying power More channel access, high quality images, and better customer service Globalization of business Key Customer Needs Interactive TV Proposition  New products & services (e.g. VOD, TV-mail)  Greater range of content (broadcast & interactive)  [Increase revenues by] Continuously delivering new products/services Drivers of Interactive TV

3. © Accenture 2001 - 3 - Business Drivers – Benefits and Considerations Interactive TV services are not a guarantee of instant profit, but not catching the trend and being a market leader can lead to competitors providing more compelling options to consumers. Market receptivity to interactive TV services Consumer behaviour How to reduce set-top box costs? Content Management Overall increase in business complexity Potential new skills and organisational entities Technological complexity Consumer concerns Increase and retain subscribers Increase and retain ad revenues Penetration of internet services over TV Increase revenue sources Benefits of Interactive TV Considerations for interactive TV plans (not an exhaustive list!!) Drivers of Interactive TV

4. © Accenture 2001 - 4 - Lessons for Australia The importance of effective marketing A broad-based business case Interactive TV is just one channel; consider the wider play of broadband internet, wireless and through-the-ether channels The Asian marketplace presents opportunities Collaboration is a key capability as means of managing cost and complexity You need content, not just technology You need technology to deliver the enhanced content Pick the right vendors! You need to be able to manage all of the new content and technology effectively to avoid an explosion in costs