Annelise Berendt
IPTV versus Internet TV: a matter of co-existence
Is the walled garden for video services a blessing or a curse for IPTV operators? Can it be used for competitive advantage or will it simply hamper telcos' success as providers of TV and film services, with consumers turning en mass to broadband video services provided over the public Internet? Of all the questions raised at this month's IPTV World Forum event held in London, the thorniest is probably what is the potential impact of Internet TV on the strategies and success of operators of closed, proprietary IPTV systems. Comment: There are plenty who argue that IPTV will be short-lived because of competition from what are now termed in the US “over the top” providers - players such as Google, Yahoo!, Joost and, most recently Babelgum, whose offerings effectively allow consumers to bypass telco-controlled (and indeed CATV, satellite TV and terrestrial TV) services and pull content towards them over the public Internet. We believe there is room for both IPTV and Internet TV, and that players from both camps will be more successful with certain consumer segments than others. They essentially provide a choice in the method for watching a particular piece of content. This choice is based on a trade-off between price, convenience and the quality of the experience. It takes effort to search and pull content towards you, however minimal, and there are plenty of consumers ready to receive pre-packaged content on the couch without having to think too much about it or seek out their viewing experience. Alternatively, for the market niches that are tech savvy, prepared to accept a lower quality experience and more inconvenience in order to avoid paying directly for what they watch, Internet TV is the answer.Players such as Joost are certainly raising the game in terms of quality and ease of use, and the CE vendors are working hard to take web-TV to the TV set - a vital requirement to take the medium mass market. This does mean that in future, some Internet TV services will represent greater competition for IPTV operators. The latter will therefore have to be one step ahead in terms of quality, convenience, functionality and of course content. In fact we expect to see a closer working relationship between IPTV and Internet TV. Telcos will look increasingly to both services and players on the open Internet, sometimes bringing them into the IPTV garden. And the role that telcos take in the closed proprietary IPTV offer itself will also vary by market. Some will find the wholesale role the most lucrative, most will have a direct offering alongside key partners, and some will be capable of taking the leading role. This ability to vary the roles played will also help establish IPTV, ensuring that those companies and brands that are strongest in individual markets are able to grow the platform most effectively. It's quite possible that one day we will see a “Joost” or “Google” IPTV channel or even service as part of a telco's proprietary IPTV offering.
