Integration

How can we go from a service-focused approach to one based on various forms of convergence?

Scenario

The technological convergence between fixed-line and mobile connectivity under an “ALL-IP” framework is driven by the demand from consumers and businesses to stay connected anytime and anywhere. Since in the sharing economy the consumption of digital content is based on the notion of access, rather than ownership, the concepts of sharing and relationship are taking on increasing importance. Finally, a third substantial change concerns the strong personalisation of ICT services. It is a true on-demand economy, based on the demand for high-quality content that can be flexibly accessed from multiple devices3.

Globally

By 2018, spending to access content is expected to overtake ownership-spending globally5.

global spending
on buying content *
-8.4%
global spending
to access content *
+31%
* Physical home video, physical recorded music, and digital downloads in 2014

By the numbers

source2

71% Of Italian internet users used the web to access cultural content in 2015

26% Of the population shopped online

1/3 Of users over 15 used cloud services to store documents, pictures or other files

25.1% Of Italians connected to the internet to watch movies in streaming

source4

33.3% Of Italians connect to the internet through fixed-line broadband connections

 

18.6% Of households have only mobile broadband connections

  +12% from 2014

11.5% Of households have mobile and fixed-line broadband connections

  +10% from 2014

94.4% of companies with at least 10 employees use fixed-line or mobile broadband connections

source6

15.5% of companies use e-invoicing

60.7% of companies use both fixed-line and mobile connections

29.6% of companies use social media for marketing purposes

70.7% of companies have a website

10% of companies sell online

Our answers

Digital platforms
and contents

At TIM, we meet the growing demand for integration and personalisation from both individuals and businesses with innovative broadband and cloud services and solutions-modular packages that can be tailored to the stage of digital development of the consumer or company.


TIM in first 9 months of 2016 by the numbers

TIM Impresa Semplice

A fully dedicated kit for SMEs including integrated communication services, connectivity, advanced ICT and IT services based on Cloud services provided by NuvolaStore.

Technological convergence goes hand in hand with the integration between media and telecoms. This trend has now entered a new era characterised by the increasingly close ties between TV publishers, digital platforms, and IT networks. The separation between networking (content transport) and multimedia services (content offering) has increasingly blurred. Conventional broadcasters no longer play a predominant role, but rather co-exist with several different players, spawning partnerships that benefit consumers in terms of the quality and performance of the services.

Online video distribution and TV is indisputably the greatest success story.

EACH MINUTE,
Netflix subscribers stream 77,000 hours of video and Youtube users upload 300 hours of new video. 7

VIDEO
already accounts for 50% of mobile data traffic, and will rise to 70% over the next 5 years. 8

IN THE UNITED STATES,
video and music already account for 70% of ip traffic. 9

Against this backdrop, several conventional telecoms service providers are revising their positioning and business model in light of social and consumption trends, and have started on a journey towards the distribution of even premium digital content on customisable platforms.

  1. Sale of
    Digital Services
  2. Through digital processes
    managed jointly with consumers
  3. Through the development of
    network platforms in an Open Ecosystem
  4. With All IP Cloud
    Based architecture
  5. Through UltraBroadBand
    accesses
Digital
Telco
  1. Data
    traffic growth
  2. Video
    is a key component
  3. Focus on the quality
    of the experience
  4. Co-opetition with
    complementary players
  5. Multi-connected
    multi-device and multi-screen

The convergence between media and telecoms is pushing the market towards new production structures, promoting cross-sector partnerships throughout the value chain.

TIM has taken this path as well: from commercial bundle offers including internet connections, services and content, to the creation of integrated and “open” digital platforms that can host premium contents from other digital entertainment providers.

2015
TIMmusic

> 2 mln premium customers

> 200 average monthly streamings for user

25 mln songs

TIMvision

> 500,000 subscribers

> 8,000 titles

25 mln views

TIMreading

55,000 members

> 120,000 eBook

> 50 Magazines

TIMgames

240,000 members

> 2,000 games from leading publishers

Sky eTIM
the TV on broadband

> 150 channels

60 HD channels

2,500 Sky on demand titles

2015
main partnership

Premium Online

Besides ensuring a comprehensive on demand offering, the agreement also brings 22 live TV channels to TIM’s ultra-fast network, including the best of Serie A TIM and Champions League matches available exclusively for TIM customers until 2018.

US Majors

Agreements with major content producers and distributors (Disney, 20th Fox, Paramount Pictures, MGM, Universal Pictures, CBS) that, together with the library of leading independent producers, expand TIMvision’s offering: thousands of movies, TV series, and children’s television programmes, including many that are available exclusively for TIM customers.

Netflix

The world’s largest online streaming platform, with over 81 million subscribers. Agreement for the distribution of the service, offering a massive library of original content catering to digital consumers and their habits.

Rai

The agreement includes a selection of over 70 movies of the last four years and 200 movies from RAI’s library, as well as 500 hours of TV series and programmes per year. In addition, the best RAI TV shows of the last 7 days are available on any device, sorted by original air date and time.