Final Report
Study of Procedures for Competition Regulation for OTT TV
25 January 2017
Time Consulting Co., Ltd.
Table of Contents
- Executive Summary14
1.1 Summary of understanding of Project Procedure and Methodology14
1.2 Summary of International Comparison21
1.3 Summary of Analysis of the Thai market25
1.4 Summary of Gap Analysis and Policy Recommendations34
2. Understanding the Project40
2.1 Project Background40
2.2 Project Objectives41
3. Project Procedure and Methodology42
3.1 Definition of OTT Words and their Value Chain42
3.2 Key Points of the Study45
3.3 Project Concept and Procedures46
3.4 Plan 1: Project Planning48
3.5 Plan 2: International Study50
3.6 Plan 3: Thai Market Analysis62
3.7 Plan 4: Gap Analysis and Policy Recommendation65
3.8 Plan 5: Focus Group and Capacity Building67
3.9 Plan 6: Conclusions and Final Recommendations71
3.10 Work Plan and Timeline73
4. OTT TV Systems, Types of Services and Devices Supported74
5. International Study82
5.1 United States of America82
5.1.1 OTT TV Providers in the market and Types of OTT TV Services85
5.1.2 The Market, Competition and Impact from offering OTT TV Services95
5.1.3 Regulations, Promotional Policies and Support for OTT TV Services102
5.2 United Kingdom, UK109
5.2.1 OTT TV Providers in the market and Types of OTT TV Services112
5.2.2 The Market, Competition and Impact from offering OTT TV Services120
5.2.3 Regulations, Promotional Policies and Support for OTT TV Services125
5.3 Singapore131
5.3.1 OTT TV Providers in the market and Types of OTT TV Services133
5.3.2 The Market, Competition and Impact from offering OTT TV Services139
5.3.3 Regulations, Promotional Policies and Support for OTT TV Services143
5.4South Korea150
5.4.1 OTT TV Providers in the market and Types of OTT TV Services153
5.4.2 The Market, Competition and Impact from offering OTT TV Services159
5.4.3 Regulations, Promotional Policies and Support for OTT TV Services162
5.5Malaysia170
5.5.1 OTT TV Providers in the market and Types of OTT TV Services172
5.5.2 The Market, Competition and Impact from offering OTT TV Services178
5.5.3 Regulations, Promotional Policies and Support for OTT TV Services183
5.6Australia188
5.6.1 OTT TV Providers in the market and Types of OTT TV Services191
5.6.2 The Market, Competition and Impact from offering OTT TV Services196
5.6.3 Regulations, Promotional Policies and Support for OTT TV Services204
5.7 The Overall Regulatory Scene in the Asia Pacific Region206
5.8 The Global Consumer Response216
5.8.1 Consumer Behavior in Choosing Contents217
5.8.2 Consumer Behavior in Choosing Devices222
5.8.3 Current Customer Satisfaction in OTT TV224
6Thai Market Analysis227
6.1Market Analysis and types of services for Pay TV Service in Thailand227
6.2Market Analysis for OTT TV Service in Thailand230
6.2.1Market Trends for OTT TV Service in Thailand253
6.2.2 Analysis of interesting OTT TV Service Providers 260
6.2.3 Analysis of Relevant Laws and Regulations275
7Result of Focus Group284
7.1The Focus Group Program284
7.2Planning for Focus Group285
7.3Summary of Contents of Focus Group288
7.4Summary of Ideas on Competition Regulations for OTT TV289
7.5Scenes from Focus Group291
8Capacity Building for NBTC staff293
8.1Program for Capacity Building293
8.2Planning for Capacity Building294
8.3Summary of Questions on Competition Regulations for OTT TV296
8.4Scenes from Capacity Building298
9Report of Competition Regulation on OTT TV300
9.1Program for Competition Regulation on OTT TV300
9.2Planning for Competition Regulation on OTT TV301
9.3Summary of Seminar on Competition Regulation on OTT TV305
9.4Customer satisfaction and ideas from seminar on
Competition Regulation on OTT TV 306
9.5Scenes from Seminar on Competition Regulation on OTT TV307
10Final Recommendations and Regulatory Impact Analysis309
10.1Definition of OTT TV Service309
10.2Final Policy Recommendations on Competition Regulation on OTT TV309
10.2.1Policy Recommendations on Good and Creative Local Contents 310
10.2.2Policy Recommendations on Regulatory Control of
OTT TV through Licensing312
10.2.3Policy Recommendations on Imposing Content Regulations 314
10.2.4Policy Recommendations on Regulating ISP through Net Neutrality317
11Appendices322
11.1Attendee List at Focus Group322
11.2Attendee List for Capacity Building of NBTC Staff328
11.3Attendee List for Seminar on Competition Regulation on OTT TV330
11.4Customer Satisfaction Questionnaire at Seminar on
Competition Regulation on OTT TV334
CHARTS CONTENTS
Chart 1-1Project Design15
Chart 1-2Scope of OTT TV Project16
Chart 1-3Project Work Plan with Timeline20
Chart 1-4Market Development of OTT TV in other
countries compared with Thailand22
Chart 1-5 Dominant Players in US, UK, and South Korea23
Chart 1-6Dominant Players in Australia, Singapore and Thailand23
Chart 1-7Partnership among OTT TV and Supply Chain Providers24
Chart 1-8Policy Recommendation on Regulating OTT TV 36
Chart 2-1Project Background and Objectives40
Chart 3-1Value Chain and Scope of OTT TV43
Chart 3-2Project Design47
Chart 3-3 Sample of Project Status Report48
Chart 3-4Topics and Countries to be studied51
Chart 3-5Sample Analysis of Development of OTT TV in the US54
Chart 3-6OTT TV Monetization Model Overview54
Chart 3-7Video Service Monetization Model in Other Countries55
Chart 3-8Video Service Monetization of incumbents in the US55
Chart 3-9OTT TV Partnership with Incumbents56
Chart 3-10Trends in using OTT TV Features56
Chart 3-11Sample Regulation of OTT TV57
Chart 3-12Scope of Global Consumer Behavior58
Chart 3-13Information on Mobile Data usage for Video60
Chart 3-14Sample of Viewing Behavior in foreign countries60
Chart 3-15Scope of Overview of Regulatory Framework in Asia Pacific61
Chart 3-16Video Service Provider Landscape in Thailand63
Chart 3-17Competition Analysis and Profiling of OTT TV Service Providers
In Thailand64
Chart 3-18Key Issues for OTT Regulations67
Chart 3-19Sample Focus Group69
Chart 3-20Sample Capacity Building70
Chart 3-21Sample presentation of ideas from different sectors72
Chart 3-22Project Plan and Timeline73
Chart 4-1OTT TV Infrastructure74
Chart 4-2Categories of OTT TV Provider and Content76
Chart 4-3OTT TV Monetization model79
Chart 5-1OTT TV in USA at year 2004 to 200986
Chart 5-2OTT TV in USA at year 2010 to 201687
Chart 5-3Amazon Video Purchase and Rental92
Chart 5-4Popularity of OTT TV in the US97
Chart 5-5Pay TV subscribers in the US 2006 to 201598
Chart 5-6Impact of OTT TV on Pay TV in the US99
Chart 5-7Future of OTT TV and Pay TV100
Chart 5-8Comcast switch to usage based pricing for broadband102
Chart 5-9Relevant Regulation for OTT TV in USA103
Chart 5-10Net Neutrality Rules in the US104
Chart 5-11Net Neutrality Cases Comcast and Bit Torent106
Chart 5-12Net Neutrality cases at Zero Rating108
Chart 5-13Major OTT TV players in the UK 2006-2015113
Chart 5-14Popularity of OTT TV in the UK121
Chart 5-15Online TV Revenue in the UK122
Chart 5-16Impact of OTT TV on existing platforms124
Chart 5-17Impact of EU Directives on OTT TV regulation in UK126
Chart 5-18The Audio Visual Media Services Directive127
Chart 5-19OTT TV Regulations in the UK130
Chart 5-20OTT TV Services in Singapore133
Chart 5-21Singapore’s Landscape of Linear TV140
Chart 5-22Singapore’s OTT TV Market Environment141
Chart 5-23OTT TV effect on Singapore142
Chart 5-24Pay TV Subscribers and ARPU143
Chart 5-25Singapore’s OTT TV related Rules and Regulators144
Chart 5-26Singapore’s OTT TV related Regulations: Licensing145
Chart 5-27Singapore’s OTT TV related Regulations: Consumer Protection146
Chart 5-28Singapore’s OTT TV related Regulations: Consumer
Protection Cases147
Chart 5-29Singapore’s OTT TV related Regulations: Other Relevant Rules148
Chart 5-30OTT TV in South Korea154
Chart 5-31Readiness of South Korea for OTT TV159
Chart 5-32Market Leaders in OTT TV in South Korea161
Chart 5-33Effect of OTT TV162
Chart 5-34Relevant PTT TV Regulations in South Korea163
Chart 5-35Net Neutrality and Internet Traffic Management Rules (2014)164
Chart 5-36 A study of Net Neutrality and
Internet Traffic Management Rules (2014)166
Chart 5-37Other Relevant laws for OTT TV in South Korea168
Chart 5-38OTT TV Service in Malaysia173
Chart 5-39Malaysia’s readiness for OTT TV178
Chart 5-40OTT TV and Advertising Spending180
Chart 5-41OTT TV and Partners181
Chart 5-42Relevant Regulations for OTT TV in Malaysia183
Chart 5-43Communications and Multimedia Act 1998 of Malaysia184
Chart 5-44Copyright Act 1987 of Malaysia185
Chart 5-45Sedition Act 1948 of Malaysia186
Chart 5-46OTT TV Service in Australia192
Chart 5-47OTT TV Viewing in Australia197
Chart 5-48SVoD OTT TV Service in Australia199
Chart 5-49Current TV Consumption Share in Australia201
Chart 5-50Future Outlook for TVM Market in Australia201
Chart 5-51Netflix Effect203
Chart 5-52Broadcasting Services Act 1992205
Chart 5-53Increase in watching On-Demand TV Series and Movies217
Chart 5-54Average Number of Self-reported Weekly Hours of
Active TV/Video Watching218
Chart 5-55Percentage of Consumers Watching YouTube
With Different Frequency219
Chart 5-56Percentage of People Watching Different Media Types
At least once a day220
Chart 5-57Global Consumer Behavior OTT TV221
Chart 5-58Percentage of Consumers who Watch Each
Content Type on their Smart Phone222
Chart 5-59Share of Total TV Time by age Group224
Chart 5-60Consumer Evaluation of Content Providers229
Chart 6-1Current Situation of Pay TV Market August 2016249
Chart 6-2OTT TV Players in Thailand254
Chart 6-3 Growth in Broadband Adoption in Thailand255
Chart 6-4SVoD OTT TV in Thailand256
Chart 6-5AVoD OTT TV in Thailand257
Chart 6-6Price Trends and Technologies258
Chart 6-7Is Thai Telecom Act Relevant to OTT TV?259
Chart 6-8 Profiling and SWOT Analysis: MonoMaxxx261
Chart 6-9Profiling and SWOT Analysis: Primetime262
Chart 6-10Profiling and SWOT Analysis: iFlix264
Chart 6-11Profiling and SWOT Analysis: HOOQ265
Chart 6-12Profiling and SWOT Analysis: LINE TV267
Chart 6-13 Profiling and SWOT Analysis: YouTube268
Chart 6-14Profiling and SWOT Analysis: Bugaboo269
Chart 6-15Profiling and SWOT Analysis: TrueVisions Anywhere271
Chart 6-16Profiling and SWOT Analysis: AISPlay272
Chart 6-17Profiling and SWOT Analysis: ThaiTV3273
Chart 6-18 OTT TV Scoring System in Thailand274
Chart 6-19OTT TV Competitive Scoring in Thailand274
Chart 6-20Relevant Laws and Regulations276
Chart 6-21Cyber Crime Act BE 2550278
Chart 6-22Intellectual Property Law280
Chart 6-23Consumer Protection Law as regards OTT TV281
Chart 6-23NBTC Law as regards OTT TV282
Chart 7-1Photo 1: Focus Group on Competition Regulation OTT TV291
Chart 7-2Photo 2: Focus Group on Competition Regulation OTT TV291
Chart 7-3Photo 3: Focus Group on Competition Regulation OTT TV292
Chart 8-1Photo 1: Capacity Building for Competition Regulation OTT TV 298
Chart 8-2Photo 2: Capacity Building for Competition Regulation OTT TV299
Chart 8-3Photo 3: Capacity Building for Competition Regulation OTT TV299
Chart 9-1Photo 1: Seminar Competition Regulation OTT TV307
Chart 9-2Photo 2: Seminar Competition Regulation OTT TV308
Chart 9-3Photo 3: Seminar Competition Regulation OTT TV308
Chart 10-1Policy Recommendation309
Chart 10-2Good Local Contents Support311
Chart 10-3Policy Recommendation: Licensing312
Chart 10-4Policy Recommendation: Contents315
Chart 10-5Policy Recommendation: Regulate ISP via Net Neutrality318
CONTENTS TABLES
Table 1-1Study showing comparison between foreign countries
and Thailand28
Table 3-1Sample Regulation66
Table 5-1List of Service Providers in Telecom, National Television,
Commercial Television, Pay Television, as connected to OTT TV
service in the US85
Table 5-2Netflix monthly service charges in the US90
Table 5-3Package of Service offered by Hulu95
Table 5-4Viewers on YouTube by Content Providers96
Table 5-5List of Service Providers in Telecom, National Television,
Commercial Television, Pay Television, as connected to OTT TV
service in the UK112
Table 5-6List of Service Providers in Telecom, National Television,
Commercial Television, Pay Television, as connected to OTT TV
service in Singapore133
Table 5-7List of Service Providers in Telecom, National Television,
Commercial Television, Pay Television, as connected to Pay TV
service in South Korea153
Table 5-8List of Service Providers in Telecom, National Television,
Commercial Television, Pay Television, as connected to OTT TV
service in the Malaysia172
Table 5-9List of Service Providers in Telecom, National Television,
Commercial Television, Pay Television, as connected to OTT TV
service in Australia191
Table 5-10Subscribers and households that watch Video and TV202
Table 5-11Overall Regulatory of OTT TV in the Asia Pacific Region215
Table 6-1Prime Time Fees in August 2016233
Table 6-2Thai Viewing Statistics through YouTube at August 2016239
Table 6-3Overall Service Provider in Thailand for OTT TV,
and type of Revenue253
Table 7-1Opinions about Competition Regulation for OTT TV290
Table 8-1Summary of questions raised on
Competition Regulation for OTT TV298
- Executive Summary
This is the Final Report on ‘Competition Regulation on OTT TV’ (Over the Top Television) which covers understanding of the project, study guidelines, methodology, study of comparative OTT TV markets, impact of OTT TV, regulatory environment in foreign countries (International Study), analysis of the Thai market, summary of findings of focus group, response from capacity building of NBTC personnel, resulting in the final recommendations and regulatory impact analysis.
The object of this study is to seek challenges in regulating OTT TV and providing recommendations in keeping with the role of NBTC in promotion and supervision including analysis of strengths and weakness of the regulatory issues where NBTC can intervene. The details of the study are presented as follows:
1.1 Summary of Understanding of Project Procedure and Methodology
The project ‘Competition Regulation on OTT TV’ studies competition in Over the Top TV, with the key objective of studying comparative benchmark market conditions and competition in OTT TV services and impact on the relevant service market, together with regulatory environments. The objective is to analyze and provide policy recommendations suitable for Thai conditions, which will enable NBTC to adapt regulations in the period of convergence.
In implementing the project according to the project objectives as declared above, the consulting company Time Consulting Co., Ltd. has designed this project in six sections over a total of seven months with details of how they are linked as follows:
Chart 1-1: Project Design
Scope of the Study
The project ‘Competition Regulation on OTT TV’ needs to define OTT TV clearly to provide the frame work for the study. In this project, OTT TV means the website or application which sends content to end user through any internet network.
Chart 1-2 shows the value chain for OTT TV services which has five key parts – content owner, platform service provider, provider of devices used in OTT TV, end user, and the internet service provider. This study will show the types of service provided, market condition and competition in offering the OTT TV service, impact of the OTT TV service, and trends towards competition regulations mainly covering the service platform and will indicate use of devices in each work plan of the project.
Chart 1-2: Scope of OTT TV Project
Work Plan 1: Project Planning
Work Plan 1 involves detailed project planning where the consultant will provide clear definition of OTT TV for this project, summarize the choice of countries and study issues to provide a framework for the entire study including adapting the initial project plan to have the technical recommendations proceed according to NBTC’s requirement.
Work Plan 2: International Study
Under this work plan the consultant will make a comparative study of 6 countries as follows:
Key issues to be studied cover several areas of interest to NBTC to set policies to regulate as follows:
- Market conditions and competition in linear and non-linear platform for Pay TV and OTT TV
- The business model, technology offered for OTT TV service and future trends for OTT TV
- Monetization model of OTT TV
- Relationship between OTT TV, Telco, Pay TV Operator and Broadcaster
- Analysis of impact in several areas including competition with other platforms such as DTT, cable, and satellite TVs, service fees charged, and impact upon the consumer
- Format and parameters of OTT TV related regulations such as network regulation, regulating through licensing authorization, and online content regulation
- Policy format, promotion and support to be offered e.g. support for Tech-start up OTT TV provider
- SWOT analysis of regulatory intervention through regulations and policies, with key implications for Thailand
In addition, Consultant will add information to help NBTC understand behavior trends and regulatory implications which will offer the macro view of the international scene as follows:
- Global overview of consumer behavior on video consumption on the following key issues:
- Behavior in choosing content through OTT TV
- Behavior in using devices to access OTT TV
- Satisfaction in using OTT TV services today
- Overview of regulatory issues in five countries of Asia Pacific Region i.e. Japan, Hong Kong, China, Indonesia and the Philippines. The issues to be studied are:
Regulatory structure for OTT TV
- Law protecting copyright
- Law covering issuance of license for OTT TV service providers
- Law covering fee structure (covering wholesale and retail)
- Investment law (covering foreign investment)
- Law covering sales promotion (e.g. service add-on)
- Law covering advertising (e.g. setting ceiling for advertising rate by the hour)
- Law covering content, and law covering consumer protection
Work Plan 3: Thai Market Analysis
In this Work Plan the Consultant will analyze the market for Pay TV and OTT TV in Thailand, covering market trends and services, types of service offered, technology used in offering OTT TV services, types of revenue for OTT TV, types of relationship between OTT TV, Telco, Pay TV Operator and Broadcaster, analyzing impact on areas such as competitions with other platforms (DTT, cable and satellite), fee for the service, and the consumer impact. Consultant will also study various laws that may be related to OTT TV in Thailand and to the Ministry of Digital Economy and Society and to compare with studies in foreign countries. Consultant will also analyze at least 10 businesses of OTT TV service providers in Thailand in detail.
For its information collection, Consultant will use desk research and collect information from market intelligence that Consultant already possesses. If more details are required, Consultant may interview executives of OTT TV service provider formally and informally.
Work Plan 4: Gap Analysis and Policy Recommendations
In this work plan, The Consultant will summarize information obtained in Work Plan 2 and 3 to identify challenges in regulation and in preparing recommendations according to the NBTC’s role of promotion, regulatory supervision and identifying the strengths and weaknesses of the regulatory issues where NBTC may intervene.
Work Plan 5: Focus Group and Capacity Building
In this work plan, The Consultant will organize one Focus Group meeting at the NBTC office to hear comments and opinions on the Consultant’s regulatory recommendations for OTT TV oversight. The Consultant will also organize a one-time capacity building seminar to educate NBTC staff about OTT TV services in foreign countries and competition regulation recommendations at the NBTC office.
Work Plan 6: Conclusions and Final Recommendations
In this work plan, the entire study will be summarized and final policy recommendations will be made in regulatory oversight of OTT TV to the NBTC. The Consultant will prepare risk assessments in implementing OTT TV regulations or not implementing it, the impact on market and competition in Thailand. After summarizing, adjusting and improving the entire study, The Consultant will organize a one-time seminar for the public (OTT TV and Pay TV service providers, Broadcasters, Content producers, etc.) and relevant NBTC personnel.
For the Project Work Plan and Timeline Chart 1-3 will show that all the work within the TOR will be completed within 7 (seven) months. The Consultant will finish Work Plan 1-6 in 180 days (6 months). The last month will be devoted to promoting the study to the public and NBTC staff and in adjusting the report according to NBTC’s recommendations.
Chart 1-3: Project Work Plan with Timeline
1.2 Summary of International Comparison
- OTT market in Thailand is at the infancy stage
OTT TV arrived in Thailand in 2014, considered to be at the infancy stage when compared with other countries studied here, especially the United States, South Korea, Australia and the United Kingdom. These countries have been offering OTT TV for a long time and have a variety of OTT TV services available. Some service providers have merged businesses some have already left the field. While Singapore and Malaysia have offered OTT TV services for a while, their development is still at the infancy stage like Thailand, and both countries have OTT TV services which are developed by local people.
- YouTube and Netflix were successful at global level, especially Netflix was most popular in English speaking countries
Comparing all the countries in the study, with the exception of South Korea, all countries favor YouTube in accessing OTT TV especially for contents which are UGC. On the other hand, in countries where English was the main language like US, UK and Australia, Netflix is the most popular channel for watching copyrighted movies and online TV. Thus the large service providers in each country tend to grow out of original service provider in television, broadcasters, and Pay TV providers.