Tuesday, July 01, 2008

Is IPTV an Option?

DailyIPTV has a list of the Top 10 IPTV providers. DailyIPTV also notes this about providers:

""Right now, most of the IPTV offerings out there are really 'me-too' offerings that essentially replicate the cable broadcast model. This is completely understandable since delivering video isn’t a trivial task. However, AT&T’s U-Verse service, which just rolled out HD, is a unique and compelling service. Also, SureWest in CA, which was the first to roll out MPEG-4-based HD, delivers video over both ADSL2+ and FTTH, with VOD and integration with IM clients for messaging and Caller ID screen pops is [another] very intriguing service." It should be noted that while Verizon’s FiOS fiber-to-the-home offering is often referred to as true IPTV, this isn’t really the case since they’re using technology similar to that of regular cable companies."

I thought CavTel also provided TV but it must not be IPTV and it must be for a small community. Note that SureWest is an ILEC in California.

In the US, many MSO's are losing their best customers to satellite offerings because of limitations in cable plant. (For example, it is analig coax or th ehead-end is old). It costs millions to re-build the plant and at least half a million for the head-end. Add in set top boxes at $400 a pop and it is an expensive deal.

Here's some advice from Telephony online:

Be realistic about IPTV: Early rollouts of IPTV missed their targets. Providers need to be realistic about ARPU, profitability and take-up. As IPTV itself is unlikely to generate much, if any, margin, indirect benefits such as broadband price support and churn reduction are likely to be far more important than any direct cashflow benefits. IPTV providers also need to be realistic about which segments they can target--IPTV entrants are unlikely to churn pay-TV subscribers without premium content. Scale matters--many IPTV providers will not survive: IPTV is a scale game--both for acquiring content and for building out infrastructure such as video servers. A large broadband customer base must be a key starting point for IPTV scale.
Then you have the other competitor - not just cable or telco or DBS, but the one that scares the heck out of Big Cable: Internet Video. As networks push episodes online, even Tivo seems redundant. (Although, I still can't get Smallville episodes on the CW website.)
Video encoding for online delivery – keeping an eye on quality: Big changes are afoot in the broadcast business, a fault-line is appearing in the industry as content distribution pushes further online. Major announcements from large media companies backing online video channels and pushing premium ‘TV’ content out without DRM over the internet are shaking up the industry.

There are 5 shows that have IPTV components: CES, NAB, Broadband Properties Summit (every April), the NCTA Cable Show, the FTTH Council (Nashville this Sept.), and IPTV World Forum (July 22-23 in Chicago). One thing to note is how few offer TV over copper.

Some last comments on IPTV from TMC.

No comments: