[opendtv] IBC panel debates broadcast vs. broadband-based
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Mon, 11 Sep 2006 11:04:37 -0400
I think this article is a little confusing. From my perspective, the
initial value of IPTV is simply to allow telcos to compete with cable TV
companies. The additional value is that IPTV can simplify the way VOD is
mechanized, although that aspect of IPTV is easy enough for cable to
adopt as well.
In some saturated markets, perhaps the US, Germany, and Benelux
countries are examples, IPTV customers would come from cable and DBS, I
would expect.
Seems to me that if the business case for IPTV is marginal, it must be
because the business case for cable TV is also marginal.
If what some people are really thinking about is plain old TV content
streamed over the Internet, then any broadband provider could support
that, and the business case is entirely different. The benefit to telcos
or other broadband providers would be that it would create more demand
for broadband access. But if this becomes very popular, with high
quality streams to compete against cable, ISP networks will have to be
vastly improved to handle all this potential unicast traffic.
Bert
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September 07, 2006
IBC panel debates broadcast vs. broadband-based
By Junko Yoshida
AMSTERDAM, Netherlands - Broadcasters have already gone digital. Many
have launched HDTV programming. Some are even dabbling with mobile TV.
What remains unclear to many in the broadcast industry is whether
broadband Internet will be friend or foe.
Here at IBC, Europe's largest broadcast technology conference,
executives from Alcatel, Cisco and Siemens each pitched IP-based
networks as a foundation for delivering a "unified service experience."
Technology suppliers are under pressure from service providers to offer
solutions for the convergence of broadcast and broadband platforms, said
Thomas Werner, Siemen's senior vice president of mobile solutions.
Carl Rijsbrack, vice president of marketing and communications-fixed
solutions at Alcatel, agreed, adding, "IPTV is not about TV broadcast
only." Built on voice, data and video, IPTV creates "an opportunity to
look to the future," he said.
Ideally, said Siemens' Werner, users could view content whether watching
TV connected to DSL, cable, satellite or wireless. The objective is to
"deliver a seamless service experience across different delivery
networks, different platforms and different service providers," he said.
While few dispute that IP could deliver on this vision, it's far from
clear who will win the race to offer a unified service.
Meanwhile, distinctions among traditional services providers are
increasingly blurring. Paolo Campoli, Cisco's director of solutions
business development, warned, "Providers can no longer be defined by the
last-mile technology."
Also worrisome is that network owners no longer "own" subscribers.
MySpace, Google TV and YouTube are emerging as new threats to network
operators. Campoli said facility-based players who spent millions to
build networks are concerned that "this new business model is eating
into" their business.
Mergers, partnerships
"The business case for IPTV is a borderline" for most telecom operators,
Campoli asserted. Carriers must make IPTV an integral part of their
service offerings, a move that will create "a greater potential for
mergers and partnerships between content providers, broadcasters and
telcos," Campoli predicted.
Some industry observers have projected that IPTV could create a 20
percent increase in a telecom carrier's average revenue per user.
Campoli disagreed. "It's a good marketing story, but IPTV is not a
panacea," he said.
If IPTV can only provide a borderline business case, what is the value
of IPTV?
Campoli said IPTV's value is "segment specific." For telcos, IPTV will
create a new video business. For broadcasters, IPTV will provide a
chance to offer dedicated on-demand content. "The net value [of IPTV] is
not to deliver more content for free. It's to deliver value content to
different segments."
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