The Dutch carrier is aiming for at least 10pc market share within a few years. As Steve Hawley reports, KPN is also determined to offer “all and any” TV and radio services across the country, including mobile

First PVR

According to Ingeborg van der Eijk, marketing manager for KPN TV, Mine is part of the operator’s plan “to offer any and all TV and radio services available in the Netherlands.” In addition to live TV, Mine includes the country’s only PVR service. Up to 100 hours of TV programming can be stored in the Kreatel 1710 set-top box, which also allows subscribers to pause live TV and use trick-play functions. The Mine service also includes FilmDirect, a VOD film library, and “catch-up TV” so consumers can see missed episodes from Dutch public broadcasting. This service has been successfully available on the Internet but KPN will be first to offer it on TV. Until October, KPN is encouraging consumers to sign up as “innovation” users, at no charge, in exchange for answering questions. Consumers are being very open and KPN has learned a lot. This period also provides an opportunity to try different things with the VOD service.

Digital terrestrial

In 2004, KPN introduced a 23-channel digital terrestrial broadcast TV service, for EUR7.95 per month, which is “down-market” from the Mine IPTV offering. The coverage area is different from Mine; some subscribers can get only Mine, some only DTT. In addition to IPTV and DTT, KPN is developing a mobile video service targeted to handheld devices that will be launched in 2007. Ms. van der Eijk noted that “KPN has obtained a DVB-H license and pilot tests are already done.” The company is now investing in its network and waiting for more mature DVB-H handhelds to become available. “Also, we have not finalised our business models for mobile TV,” she said. The Dutch TV market is very competitive, so KPN actively pursues direct market research, both to guide the evolution of its video services and to benefit its business partners. Cable competitors include Casema and UPC, each of which have more than 80 per cent market share in their respective service areas. Satellite TV has 10-15pc share. KPN’s realistic goal is to attain a TV market share of at least ten per cent after the first few years of operation.

Because its IPTV middleware platform captures subscriber usage data and programming preferences, KPN is planning to introduce a business-to-business service that will help advertisers better target their advertising. Even further, KPN is considering ways to allow advertisers to take advantage of interactive TV features. For example, to buy a type of ad placement that recommends programmes or products that consumers can choose by using the ‘red button’.

Communities

Other areas of research include content and communities of interest. KPN is looking at short-form video such as news briefs, sports, and music videos, and believes that people are prepared to pay for immediacy. It has already been shown in other countries that mobile consumers form or join groups to share content and communicate about it. Such services might be funded by advertisers and co-promoted with consumer brands.

One of the major challenges facing KPN is the strict regulatory environment. KPN must offer services over unbundled local loops, even to competitors, yet cable operators are not required to act in kind. In late July, KPN filed a suit against OPTA, the Dutch regulatory agency, to force cable operators to open their networks. A decision is expected in August.