IPTV Expectations

Telephony magazine discusses a Parks Associates consumer IPTV study. "In North America, where Verizon, SBC Communications and BellSouth are expected to launch major IPTV services by early next year, subscriber numbers won't be significant until at least 2008." "Iyer noted that consumers don't have any problem spending additional dollars for similar services as long as there is a perceived value. For example, customers will move their spending away from rental video stores to video-on-demand (VOD) based on convenience, value and choice." "The Parks study found that 42% of consumers who want a bundle of voice, high-speed data, video and wireless would prefer cable operators as their service provider, while only 15% say they would want that from wireline carriers. Additionally, telcos are seen as providing bundles more associated with PC-type services such as security, not entertainment. "Telecom operators really need to address the branding issue.”" "In a different study, wireless market research firm Telephia reported that 19% of what it calls “high-tech households” would consider subscribing to a quadruple-play bundle that includes video, Internet, landline and wireless phone from a single service provider." [This is a positioning problem for the telcos. As Jack Trout states, "It is very hard to change the mind of a consumer." That's why AT&T's purchase of NCR and Xerox's PC forays both failed. AT&T is phone/connectivity. Xerox is copier. What is Your Position?] $153 to $187 for the currently monthly spending (communications, entertainment, & advanced services). On average the monthly expenditure on Voice/Data/Entertainment/movies will be $175 and $120 for voice&data.