[opendtv] Re: News: Analyst Predicts IPTV Takeover
- From: John McClenny <jamcclenny@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Tue, 11 Oct 2005 08:06:21 -0500
When one buys an Internet/IPTV service, you are really getting two different
services over the same pipe.
The Internet part has Internet limitations, the largest of which is the
massive oversubscription of bandwidth. The average bandwidth allocation is
20 kbit/s per subscriber. Since the vast majority of users are either not
using the connetion or just surfing the web, the occasional bandwidth hog
can pig out and use a lot more.
If Internet TV became popular, the current bandwidth budgets don't work and
we will start seeing accounts sold by both max bandwidth and total transfer
bytes/month. This would drive up the costs to acquire Internet TV to
something closer to the cost of getting it through an IPTV subscription or a
MSO.
The only place this may make sense would for for a subscriber who only
watches one (non-sports) show, where it can be trickled down during the
night and viewed later.
For the the average American household viewing 8-9 hours/day, Internet TV
isn't going to happen anything soon. I would expect to see more specialized
content available inside the IPTV walled garden, since the flexibility of an
IPTV system has a slight cost reduction versus cable and the cost of
experimentation is reduced because of the last-mover advantage in STB and
middleware platforms.
Doc
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