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Interview with Annet Aris

Ahead of Cable Congress 2013 we are in conversation with Annet Aris, Board Kabel Deutschland, Sanoma, Adjunct Prof. INSEAD.

What stand out as some of cable’s priorities as we look at the state of the industry in 2013? Most European cable companies have now a unique window of opportunity, as their networks are further developed that that of their telco competition. This advantage will however not last forever as eventually both telco’s and new entrants start rolling out glass fibre networks. Cable companies should use their current advantage by continuously investing in their networks to make sure that they will be competitive also in the midterm , by rolling out their bundled offerings and thus intensifying their customer relationships and by investing in superior customer service so that churn will depend less on network capacity and price.

Can you tell us a bit about what the competitive landscape for the European cable industry looks like and how it has changed over the past few years? The cable industry is clearly consolidating with fewer and larger players offering better networks and profiting from skill and scale effects. Competition is increasingly about data and bundles, with not only telco’s as the new main competitors but also (global) over the top players, which profit from “the winner takes all” effects. The definition of what competition is, is shifting fast and incumbent players can either decide to fight each other for what is left of the “old” market or decide to try innovative alliances and thus strengthen their role vis-a vis the new entrants..

What sorts of strategies have you noticed cable executives adopting to stay ahead, especially where innovation is concerned? Most cable executives seem to be driven by the fear to become a “dumb pipe” dependent on the whiles of the regulator and have thus been investing in deepening their offering through content and services, either organically or through a portfolio of acquisitions. The results so far have been mixed and maybe cable companies should be more stringent about what their real competencies are and where they can get the necessary scale. First and foremost they should take care that they can survive well as an “dumb pipe” no matter what and then carefully diversify to other activities where they have a clear logic about why they are the best owner. Also they might think more actively about alliances.

Do these strategies translate into developments that cable customers might notice? The introduction of HD, PVR’s and VoD are clear game changers from the point of view of the customer

Are Europe’s regulators getting it right vis a vis promoting fair competition? Regulators are currently struggling with the definition of the relevant market as the new developments are very difficult to fit in the way markets are defined according to the traditional theory. At the moment the market definitions are quite different between countries, making for very different regulatory decisions. In due time market definitions will have to evolve to a much more encompassing definition of one big data market. Another dilemma for regulators is that it will be most likely not economically feasible to have more than 2 (fixed) data networks in parallel and there is a deep-felt conviction that “two is not enough” to create true competition. The current regulatory framework does not give the tools to handle this dilemma properly. The issue of net neutrality is too emotionally laden at the moment and it will be an important role for the regulator (and legislator) to objectify the discussion and find ways to both protect the free voice and starter companies and at the same time prevent free riding.  

Describe for our readers the ideal cable industry CEO – what are the qualities needed for the job in today’s environment? The ideal cable CEO will need a long term view on how to stay competitive and be open for sudden game changers. At the same time he/she will have to be relentlessly oriented to the real needs of the customers and minimize waste. He/she should be open to create innovative alliances with all kind of players and make the real dynamics in clear to the regulators and politicians.

Twitter

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Rovi creates innovative technologies that connect people and digital entertainment. Reaching millions of consumers through popular applications, devices and websites, Rovi helps global consumer electronics manufacturers, service providers, content producers, retailers and advertisers provide a better entertainment experience at home and on the go. With unparalleled entertainment data, industry-leading media guides and storefronts, high quality video playback solutions, a multi-platform interactive ad network and more, Rovi covers the digital entertainment ecosystem with both custom and cloud-based products that bring consumers closer to the TV shows, movies, music and games they love. Learn more at www.rovicorp.com

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TiVo, the leading consumer TV product provider, offers best in class user-interface, enterprise video services and seamless delivery of broadband and broadcast content to every video screen in the home. TiVo’s intuitive experience offers consumers the ability to effortlessly aggregate, search and navigate one user interface to enjoy the best digital entertainment content available today. For pay TV operators, TiVo delivers proven financial benefits with increased ARPU, higher customer satisfaction and reduced churn. The TiVo hosted service provides a whole home solution across TV, mobile and tablet platforms, in addition to traditional set-top boxes.  Distribution partners include:  Cable One, Charter, Comcast, Com Hem, DirecTV, GCI, Grande, Mediacom, Midcontinent, Ono, RCN, Suddenlink, and Virgin.


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With more than 40 years of innovation in the IC industry, Intel brings the benefits of its established CPU architecture and its world-leading process technology to the cable industry in the form of system-level ICs for data and video gateways. High performance Intel®AtomTM processors at the heart of its cable gateway System on Chip products are delivering an exceptional user experience, with proven Intel®AtomTM processor virtualization technology set to further accelerate the way service providers can deliver and monetarise new services. Intel is proud to be a sponsor of the 2013 Cable Congress. www.intel.com

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NAGRA, the digital TV division of the Kudelski Group, provides security and multiscreen user experience solutions for the monetization of digital media. It offers content providers and DTV operators worldwide with secure, open, integrated platforms and applications over broadcast, broadband and mobile platforms, enabling compelling and personalized viewing experiences. Please visit www.nagra.com/dtv for more information and follow us on Twitter at @nagrakudelski.

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Teleste is an international technology group providing HFC and deep fibre solutions and comprehensive network planning and maintenance services for leading cable operators in Europe.

In 2012 our net sales was EUR 194 million and Teleste employed 1325 persons

The company is listed on the NASDAQ OMX Helsinki Ltd.

Visit www.teleste.com for more information.

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Farncombe is the leading independent specialist digital TV consultancy, providing world-class strategic advice, engineering and design services to clients across the digital TV and entertainment value chain. Farncombe’s experience in digital TV is unrivalled, focusing on the commercial opportunities in multi-platform, multi-screen and hybrid IP TV delivery. Founded in 1991, the company now has offices in the UK, France and Germany, and is recognised as an innovator driving the industry forward and the ‘go-to’ source for independent and authoritative strategic counsel. Farncombe’s international client roster includes amongst others: Arqiva, Broadcom, BSkyB, BT, Irdeto, Kabel BW, NAGRA, NDS, Ofcom, SABC, Top Up TV, UPC and YouView. For further information, visit www.farncombe.com.

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