IPTV - Internet Protocol Television
IPTV: Progress and Possibilities

IPTV - Internet Protocol Television
PRogress and Promise in new Video Markets - Television, Cable, Movies . .

IPTV (Internet Protocol Television) describes a system where a digital television service is delivered using the Internet Protocol over a network infrastructure, which may include delivery by a broadband connection. For residential users, IPTV is often provided in conjunction with Video on Demand and may be bundled with Internet services such as Web access and VoIP. The commercial bundling of IPTV, VoIP and Internet access is referred to as a Triple Play. Adding the mobile voice service leads to the Quadruple Play denomination. IPTV is typically supplied by a broadband operator using a closed network infrastructure. This closed network approach is in competition with the delivery of TV content over the public Internet. This type of delivery is widely called TV over Internet or Internet Television. In businesses, IPTV may be used to deliver television content over corporate LANs and business networks. Perhaps a simpler definition of IPTV would be television content that, instead of being delivered through traditional formats and cabling, is received by the viewer through the technologies used for computer networks.(from wikipedia)

There has been much progesss in several domains of IPTV since our meeting last year at this time.

Emerging initiatives help change the landscape (two examples):

Joost - wiki: Joost

get Miro from Participatory Culture Participatory Culture - wiki: Miro

GARTNER: The number of households around the world subscribing to Internet Protocol television (IPTV) services offered by telecom carriers will reach 48.8 million in 2010 according to Gartner, Inc. Buoyed by new service launches, IPTV subscribers will more than double in 2007 from an expected 6.4 million in 2006 to 13.3 million.

Despite the eight-fold increase in users between 2006 and 2010, Gartner says that carriers will struggle to turn IPTV into a mainstream Pay TV distribution platform on par with established cable or satellite services.

"The difficulty in carving out a distinctive proposition that will clearly differentiate early IPTV services from other established TV options will lead many service providers around the world to drive adoption by competing on price in the next few years," said Elroy Jopling, research director for Gartner's Consumer Communication Services group.

"As a result, the global picture for IPTV revenue is much less impressive than for subscriber numbers," Mr. Jopling said. "Global IPTV revenue during the period will grow from $872 million in 2006 to a still relatively modest $13.2 billion by 2010. IPTV will not be a panacea to replace diminishing voice revenue for carriers, but in the medium term it can be a powerful tool for carriers in helping retain customers on their existing voice and broadband services."

JupiterResearch: finds that 52% of consumers would switch pay TV services if they could get a better price for the same channel selection. According to a new report entitled: "IPTV: Simple Benefits, Not New Technology, Most Effectively Compete Against Cable", JupiterResearch reveals what consumers regard as the most important elements in pay TV services, and challenges phone companies and others face as they begin to deploy competitive TV offerings. JupiterResearch is a leading authority on the impact of the Internet and emerging consumer technologies on business.

According to the JupiterResearch report, following cheaper prices, the option of a la carte channel selection proved the second strongest motivator for switching pay TV services, attracting 46% of consumers. There is little interest in high definition programming; only 6% of consumers prioritized this feature. And only 3% of consumers are attracted to a greater selection of VoD services.

"While Internet Protocol TV proponents get caught up in the futuristic possibilities of the technology, consumers remain much more levelheaded about what they look for in a TV service," said Joseph Laszlo, Research Director at JupiterResearch and author of the report. "Competitors looking to deploy IPTV should avoid overwhelming the consumer with Jetsons-like 'TV of the future' and focus, instead, on delivering real value in terms of TV of the present," added Laszlo.

According to the JupiterResearch report, potential new entrants to the U.S. TV market face enormous challenges in undertaking billions of dollars in investment to build out infrastructure and design services capable of attracting subscribers in a saturated market. Sixty six percent of current pay TV subscribers are satisfied with their service and will require aggressive pricing, better channel selection or other clear benefits to induce switching. However, the millions of customers using cable-provided phone services create a threat to phone companies' core business and leave them with little choice but to match cable's triple-play bundle of voice, television and Internet services.

"Although a la carte channel selection is highly feasible over an IPTV infrastructure, the business case remains uncertain, and media companies are likely to resist such service plans," said David Schatsky, Senior VP of Research at JupiterResearch. "To address a la carte's popularity, IPTV services should focus on giving consumers greater choice and control over their television experience, if not true a la carte," added Schatsky.

RNCOS', "Global IPTV Market Analysis (2006-2010): report provides extensive research and objective analysis of the Global IPTV Market, its performance and its future prospects. This reports helps the clients to analyze the trends and developments in IPTV Market across Europe, North America and Asia Pacific Regions. It also helps in gaining useful insights into the current IPTV market in countries falling under the above-mentioned regions.

The report contains detailed data on Global as well as regional IPTV subscriber base, service revenue, ARPU, broadband subscribers, IPTV households etc. The consumer behavior towards IPTV service has been discussed in detail, which is critical to the success of IPTV service. This report also highlights the market drivers for IPTV market and the opportunity areas for IPTV service providers. - Key Findings

- As per our research, in the long run, Asia Pacific region will lead the global revolution in IPTV in terms of subscribers, service revenue, infrastructure etc. The region's broadband penetration, supportive regulatory framework, will fuel the growth.
- The worldwide IPTV Service Revenue is forecasted to reach U.S $38 billion in the year 2009.
- The worldwide IPTV subscribers are forecasted to reach 53 million in the year 2009.
- The Americas and Western Europe are expected to be the biggest markets in terms of revenue per user basis.
- IPTV market potential varies highly across the world depending upon the local Pay-TV market and regulatory conditions.
- China will be the future IPTV dragon due to rapid urbanization, fast growing economy and expanding middle class.
- The U.S will be a more difficult market for IPTV, due to high existing pay-TV penetration, and stiff price and service competition that is likely to come from the entrenched operators in the cable and satellite sectors.
- Consumer familiarity with IPTV service is very low although youth today are much more aware of it when compared with people belonging to other age groups.
- In terms of the principal barriers to IPTV adoption, the cost is by far and away the most significant factor across all countries and age groups.

Others have doubts on the adoption and impact of IPTV.

We think that you will find the session to be interesting and informative.

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We welcome comments and requests for additional information

You can write the Wireless Technology Forum, Benn Konsynski or the Goizueta Business School alumni at:

WTF Wireless Technology Forum Susan Stottlemyer 6300 Powers Ferry Road Suite 600-140 Atlanta, GA 30339 Phone: 770-381-9616 susan@wirelesstechnologyforum.org		DIGITAL COMMERCE Benn Konsynski Goizueta Business School 1300 Clifton Rd Emory University Atlanta, Georgia 30322 Phone: 404-727-6698 Fax: 404-727-2053		G B S Alumni Samantha Renfro Goizueta Business School 1300 Clifton Rd Emory University Atlanta, Georgia 30322 Phone: 404-727-6938 Fax: 404-727-4983

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Updated 1/10/08 Benn Konsynski

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