• SFR must continue to develop a differentiated offer in a fiercely competitive market, where all players offer standard triple-play services for approximately €30 per month.
• SFR must compete with strong growth of digital terrestrial TV and the increasing range of free channels, which means consumers have a more compelling alternative to pay TV operators.
• SFR needs to develop an effective partnership ecosystem to deliver new content/services quickly and efficiently.
• SFR must help ensure that its new STBs can deliver enhanced functionality to support a more sophisticated multiscreen strategy.
• SFR can build on its leading market position and newly integrated brand (fixed and mobile) to grow consumer revenues, particularly from mobile broadband and content.
• SFR can leverage its multiscreen presence (TV/PC/smartphone) to deliver a combination of free and subscription content to customers.
• SFR can continue to upsell mobile TV users onto higher tariffs as mobile data usage, driven by increased content consumption.
• SFR partnered with Deezer (digital music) to develop its own exclusive live music broadcasts from artists that are well-known in France and make them available across multiple platforms.
• SFR partnered with Daily Motion, a user-generated content site that is very popular in France, to deliver standard definition (SD) and high definition (HD) user-generated content to TVs. Customers can access over 10 million SD videos and 30,000 HD videos that are searchable by theme.
• SFR has started to work with WyPlay to develop a more comprehensive multimedia experience in the home with more integration of different functionalities within one device. This is likely to include an emphasis on multidevice connectivity and web services.
• Revenues from fixed broadband were up 9 percent for 2009, and fixed broadband activities are becoming more profitable; year end 2009 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) grew about 45 percent.
• SFR had approximately 500,000 subscribers to its pay TV packages at year end 2009 (a growth of 88 percent year-over-year). OVUM estimates there are more than 400,000 subscribers to the DailyMotion NeufBox channel.
• SFR has also leveraged the growth in mobile data usage (including video) to sell more higher-ARPU mobile data packages. Mobile data revenues grew by 31 percent in 2009.
• Read SFR overview