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By Author: getthe way
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How does IPTV present both a challenge and an opportunity for stakeholders?
Despite this brave new world being quickly entered from all sides, the next few years will present a series of major challenges to the ultimate success and dominance of the industry, licensing for services is one in particular that all providers will have to tackle. The difficulty is always going to be ensuring that each service gets the license to provide the content in each area which the consumers on the ground are looking for. With OTT services seeming to have the advantage as far as provision is concerned, being based upon streaming delivery, their purchasing power still cannot compete with the old guard pay-tv and terrestrial television broadcasters. A key example of where this may affect their long term success is in the event market where the delivery of English Premier League football or the Superbowl in the USA can make the difference between abject failure and shining success.
Another major challenge currently for OTT providers is the speed and quality of delivery. With broadband speeds still not at a level where they can guarantee ...
... the utmost quality, 20% of the UK still receiving less than 2mbits per second; means that there are issues with customer satisfaction due to endless buffering and critically non-HD picture quality. A great deal of early adopters for the latestservices are often the more tech savvy consumers, however as the bridge is crossed over and the ‘tech-illiterate’ majority start to buy into the services there is the increasing risk of connection confusion, due to a high number of connected TVs either not being Wi-Fi enabled or having very poor streaming quality over Wi-Fi. For now the issues related to connection slowdown is in the hands of the broadband providers in each country and a result it could be some time for them to catch up with technology.
“…actual connections of connectable TVs range from only five percent to 20 percent compared with Xbox connection rates of up to 60 percent.”
Paidcontent, March 2012
Despite a number of challenges, the opportunities are numerous and great for all stakeholders involved in the industry. One major opportunity is the Internationalisation of services and the ability to tap into a world of potential customers. By delivering content through the internet and offering centralised rights management, payment solutions anda streamlined user interface means that customers can experience the same level of service and content right around the world.
In addition by offering services across multiple deveices such as smartphones, laptops and connected-TV opens up a great deal of new customers and therefore revenue streams through monetisation of content delivery across these devices both in and away from the home which is a very attractive prospect for all concerned.
"The winner in this mobile streaming movie and video war will be the one that's on the most devices… Right now in the US, Netflix wins... you have to be on every device to win this war."
Bridget Carey, senior editor of Cnet.com
With centralised services such as the Philips Smart TV, content producers can also interact with consumers directly as well as monetising their content directly by developing links with the Smart TV service and bolting on to the established payment and deliver mechanism.
Through all this centralised and connected content as well a new world of accessories and devices to improve the viewing experience has opened up for manufacturers.
"The ideal connected home organizes, simplifies, and unites a consumer's content, entertainment, and communications into an easy-to-use and elegant solution…. The consumer is in control of all the things that are important to them"
Karen Sohl, Director of Corporate Communications, Cisco Systems


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