The Dutch broadcasters' online platform NLziet has added live TV to its offering. Its subscription price remains EUR 8 per month. After the unlimited data plans introduced a few months ago by T-Mobile and Tele2, this may be the most disruptive new service to hit the Dutch market in some time.
The broadcasters have united to go straight to consumers, sidelining the traditional pay-TV operators. KPN and T-Mobile already launched their own defence last year, with the OTT TV services Play and Knippr. And of course, consumers still need to use the operators for broadband services.
NLziet was started by the three largest broadcasters in the Netherlands: the pubcaster NPO and commercial players RTL (Bertelsmann) and SBS (Talpa Holding/John de Mol). It started in June 2014 as a portal for the premium catch-up services NPO Plus (since renamed NPO Start Plus, EUR 3 per month), RTL XL (EUR 4) and KIJK (SBS, free), charging EUR 8 per month for ad-free access.
It's now added live TV, with the three main channels of the NPO, five channels from RTL and four SBS channels, in addition to the catch-up archive going back 12 months and HD quality, with no price increase. The initial launch is considered a trial, with a full commercial service planned for later in 2017. The live service has been in testing for some time, since the end of 2015.
Options: more channels
Other broadcasters may want to join NLziet, such as Discovery, Fox, Disney and Viacom. The US equivalent Hulu went through a similar evolution, starting with the main broadcasters NBC, Fox and ABC and later adding Time Warner.
The question is how additional channels would be offered. On an 'a la carte', individual basis, or as add-on packages of multiple channels. In the past the broadcasters have opposed an 'a la carte' model, requiring the pay-TV providers to take and sell packages. However, on NLziet, where the broadcasters play a more direct role, they could be more open to this model.
Operators sidelined
Telecom operators have little room to differentiate anymore in broadband and telephony services. KPN doesn't even differentiate fibre from DSL anymore, and the value of unlimited (mobile) telephony continues to decline. Newcomers are also pushing down prices, such as NLE (on the KPN network) and Joyne (a Eutelsat reseller).
All that remains is the video element. Operators offer a large number of channels, HD, cloud recording, replay and many other options to set themselves apart. NLziet is matching this offer. Soon a broadband connection will be enough for (young) viewers, and there will be little need for a multiplay subscription. Operators will be sidelined.
This is good news for the ISPs focusing on broadband (even when forced to offer TV and telephony as well), such as Tweak, LomboXnet, Jonaz and Netrebel. The household and broadband are central to the operator's offering, and NLziet is underlining this once again. While demand for broadband only is still low, operators are getting ready for increased demand, as KPN and T-Mobile show with their own standalone OTT TV services.
No standing still
Live TV is a major differentiating factor when it comes to competing with services like Netflix. A small newcomer called Mobile2Morrow is already trying this, but without the main channels it's yet to pose much threat. Bigger, international players could enter the market with such an offer (e.g. YouTube TV, Sony PS Vue, Zattoo, Magine, Molotov), but they are unlikely to launch quickly in the Netherlands given the current sharp competition.
Providers will need to compete on the video specifications offered, including price and features such as HD, replay, etc.
- The operators sell multi-plays with certain advantages (extra channels, discounts, extra mobile data). This providers a big lock-in of the customer. Despite no a la carte channel offers, the choice is broad, as the TV platform (with its set-top box, remote control and menu) brings all the content together in one place, including Netflix and YouTube. An OTT service, in the form of TV Everywhere, is a standard part of the package. The downside is the high price of multi-plays.
- Play (KPN) and Knippr (T-Mobile) offer a smaller channel package with a lower price (both EUR 10 per month). Knippr offers a la carte channels. Replay is limited to a week.
- NLziet has a much smaller offering without adding any more broadcasters. It's advantages compared to Knippr and Play are its low price, HD and a 12-month catch-up archive.
So there's something for everyone. The question is whether also Ziggo will launch a standalone OTT service and introduce broadband-only subscriptions. Alternatively it could try a 'skinny bundle', with fewer channels and a lower price. NLziet meanwhile may need to increase its channel offering, without letting its price rise too much. In the current dynamic market, all the players will need to be alert, as standing still means falling behind.
