Sunday, October 15, 2006

Notes on IPTV

Drivers for IPTV Adoption in India
When the stakes are such that a 10% increase in declared subscriber numbers can shoot up the overall earnings by 400-500Cr, then the pressure on moving to a more transparent IPTV or DTH based setup. The question of curbing piracy and the potential for even more revenues from the delivery of secure digitized content is another of the factors driving the broadcast houses to investigate and push for IPTV.

Barriers to adoption
Content
One the key barriers is the availability of licensed content in a form consumable for delivery. These will require extensive discussions between Telco's and Broadcasters or Multimedia houses to enable effective content and revenue sharing models falling in place; mostly through either proven models globally or through alliances. Given the multitude of content providers, alliances would seem a restrictive option though.
Regulation
The initial attempts of TRAI were to setup the Interconnect agreements between MSOs & Broadcasters to enable a discussion and agreement on the nature of revenue share agreements. However this has not moved much and now we have the ala-carte Rs5 per channel pricing model to help kick off the IPTV revolution.

Indian Players in Operation
1. Reliance has its story setup with the Microsoft Platform based delivery. Apparently, Msft finds IPTV in India so compelling that it plans to pick up a strategic equity in RCoVL.
2. MTNL : Launches in Delhi, expects 40K Subs, offering 30+ Channels @ 125, SD = 500 + 1000, Rs 5/- per channel. Converged services, single bill by Jan 2007


Global Players - Whats happening
1. Tiscali UK does a revenue share with an existing broadcaster (Homechoice), here the broadcaster already has a Triple Play offering & Tiscali is yet to have its own.
2. T-Com sets up a user experience monitoring and tracking system - Schenik's DiversifEye technology
3. BT readies itself to deploy Vision, its IPTV service - Set top boxes by Philips, Microsoft platform. Most content tie ups are claimed to be done

Emerging technologies of convergence
In-House-Networking related
One of the challenges of IPTV will be the disparate locations of the delivery devices within the home. There are convergent solutions on this front that are being spoken, with very specific companies in this domain. However, ff solutions dont converge - offer both seems to be an option! Or so Belgacom is doing, with a BPL technology & WiFi technology to beat the in-house cabling problem!

Industry Lanscape
Conventional Software/IT/Tech companies
Home networking companies
Electronic equipment providers
Content Security Firms
1. Pixelmetrix : A company offering Testing services on IPTV content - testing also to include the conventional equivalent of RA, as in the content has been delivered or not.

Resources
1. Quite a nice link, covers breadth with little depth though, extensive breadth
2. A short summary of the research conducted by the Diffusion Group on IPTV numbers

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