Telecommunications companies operate in highly competitive markets with the potential of IP networks to deliver converged services with the advantage of interactivity. IPTV services have been introduced by various telecommunication firms for differentiation. The technology has enabled service providers to offer Video on Demand with capability of providing a full pay TV service offering.

What is this IPTV?  In context it means, distribution of television content over a controlled IP network, where the end consumer receives the information through a set-top box which is connected to its normal broadband connection. It should be noted that IPTV (Internet Protocol Television) does not mean that information is sent over the internet, only that IP protocol is used.

In some markets, IPTV is largely a defensive mechanism by telecom and GSM service providers in encouraging subscriber’s retention rather than migrate to alternative offers in the same space. In Kenya, Telecoms and cable operators have come to understand the value of new services that could be delivered to consumers over IP networks. Most of these companies have invested in network infrastructure as well as home gateways to provide the managed platforms that are essential for delivering real time services such as video with adequate quality of service.

In adapting these technologies, Operators generate extra revenue through value addition packages incorporating the new services, while enhancing customer relationships through proactively managing the needs of the ever demanding subscribers. Pay TV operators have responded in a similar measure by developing multi-screen services themselves and where possible exploiting their superior premium content offerings to defend their revenues in OTT platform.

In order to maintain their edge and to continue defending their interests, operators need to provide compelling advantages to broadcasters and content owners through their ability to deliver video assets cost effectively to as many users as possible.

What are the key IPTV features? The biggest difference in today’s distribution of television content is that you have the power to choose which information you want. Unlike before, everything is not broadcast-ed as with terrestrial, cable and satellite. The IPTV services presents big difference in that, you are able to have a high capacity two way communication and have the ability to interact with the service provider as compared to the other models.

IPTV services providers also boasts of other things that could be provided with its interactive applications (e.g. blogging) or transaction applications (e.g. Television shopping). Because of the point-to-point connection IPTV offers, every user is able to view their own individual broadcasts. The service offers capabilities for VoD (Video on Demand) which provides individual choices, EPG (Electronic Program Guide) and PVR (Personal Video Recorder), where the EPG is fully interactive, use of features like pause, fast forward and rewind when you are watching a movie on your TV among others.

What does this potent to content producers? The entry of new devices and new video delivery technologies has created an opportunity for content providers to go direct to consumers. Service platforms have evolved from proprietary complex systems dealing with Conditional Access (CAS), Subscriber database, Content database and Portal management to simpler modules inspired by Web technologies.

This change explains that what was referred to as a Service Platform is now called a CMS. In all there are still significant issues to be considered by content providers if they are to fully reap the rewards of this brave new world. There are issues to do with live events; peaks in demand are hard to deal with when the system must scale with the number of users, no guarantee for the quality of service once streams are delivered to the local operator’s network among others.

The same provides opportunities for users’ experiences in watching TV and can be achieved by integrating IPTV and multimedia communication services, such as voice and video telephony. This presents user groups like friends or family members to share their emotions while they are watching a TV program. The integrated solutions enable end users to use even complex functions like group communication (conferencing) with ease. This stimulates the service usage and allows new technology usage forms to evolve, potentially opening new business opportunities.

As telecoms flat rates are widely adopted, there is no likelihood for them to experience a big revenue increase from integrated communication services directly, hence need for innovation and creativity for long-term business survival. Most Telecoms are embracing IPTV as a way to boost broadband adoption and generate new revenues. Moreover, the move to IPTV is also dictated by the need to compete with the triple play offering of cable operators. As more operators deploy IPTV services with new features such as catch-up TV and PVR, the factors for differentiation are dissolving rapidly.

I believe that further differentiation is possible by focusing on the integration with communication services in order to create new viewing experiences. The focus here is on the greater benefits, which will come from the social connectivity. This scenario focuses on stimulating cross-service transactions through enhanced IPTV commercial advertisements while maintaining user privacy. With this technology, many people are enabled to many new services delivered over the open Internet. With this technology, content providers are capable of targeting end users directly.

Where do we go from here? The quality of experience is the ultimate game changer in this competitive environment. The user expectations are much higher for a TV-based service than for Internet services, such as internet browsing. The strategy for any video content provider must now include multi-screen delivery. Users are now demanding access from all their devices and there is growing momentum behind companion screen applications that add value to existing services through increased levels of interactivity.

Players in the sector have to be alert and ready to innovate and adapt to new trends which include but not limited to development of new software’s, enhanced companion screen activities and enable new revenue generating applications and use of secondary devices. The y must also consider cost control, user experience across devices among others.

For the content creators’, the future is bright, however be ready to change with the ever changing operational environment.

The writer is a Chartered Marketer, and film industry professional and can be reached at timothy.owase@live.com

 

• Uncategorized