KPN's challenge is to make that a KPN line rather than a cable line. Its challenge is that cable has 95 percent coverage with 85 percent market share. KPN's own IPTV has 50 percent coverage today with only 1 percent market share.
Satellite and digital terrestrial are minor factors today. Satellite has 100 percent coverage and 10 percent market share in The Netherlands, while digital terrestrial has 65 percent coverage and 4 percent market share.
KPN introduced its Mine IPTV service in May 2006 as a premium brand. It found that people are reluctant to switch and do not understand what IPTV offers them. They also do not recognize KPN as a TV provider. It also found that IPTV is a difficult service to offer and that the entire company has to focus on it to make it successful.
KPN offers two pages. It offers a basic package for 6.95 euros per months that it positions for people that are not interested in sophisticated features but includes digital terrestrial. It offers a free trial with this basic service.
KPN also offers a premium interactive service for 9.95 euros per month. This service includes a set-top box with a hard disk and up to three digital terrestrial receivers. This service offers:
- 50 broadcast TV channels
- 80 broadcast radio channels
- Catchup TV for 4 channels
- EPG that shows one week ahead
- Home recording up to 100 hours
- The ability to pause live TV
KPN's strategy is to expand the coverage of its IPTV service, provide attractive bundles, focus their sales force on the offering, and continue to develop the service to keep it competitive.
KPN is in a tough market with strong cable competition. This presentation shows that it is addressing its challenges and understands the strategic importance of IPTV.
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