IPTV: Ready for Primetime?
Internet protocol television (IPTV) is booming everywhere it seems. Everywhere but in North America.
IPTV is not to be confused with Internet TV, which is usually quick to produce and lacks any form of comprehensive monitoring to ensure optimal picture quality (YouTube anyone?). IPTV is not the only way to deliver TV, but it’s the preferred method for phone companies looking to get into the television business. In a nutshell, IPTV is very bandwidth thrifty and can support exceptional picture quality, making it ideal for telcos looking to deliver quality High Definition (HD) and Video-On-Demand (VOD) programming.
Despite the horsepower that AT&T has, its U-verse IPTV offering has generated fairly tepid subscription numbers here in the U.S. While small U.S. telcos are having more success signing on IPTV subscribers – from a percentage of their customers stand point – the total number of IPTV subs is small in the U.S. Wait you say, what about Verizon’s vaunted FiOS service? While it’s indeed TV delivered by a telco, it’s not delivered via IPTV. It’s cable in the guise of telco.
Where IPTV lacks in usage in North America it makes up for it in Europe and Asia.
A recent report by Screen Digest finds that IPTV will claim 10% of the pay-TV market in the European Union as soon as 2009. This means that there will be a remarkable 8.7 million IPTV subscribers in the EU (currently ranked No.1 in the IPTV market), which translates to an approximate 658,000 increase from the previous year. And if you think that number is large, just wait until Asia takes over the first place spot, as it is predicted to later this year.
Enter new solutions from two of our clients - who are not waiting for North America to play catch up. In a continually growing industry, it’s important to remain ahead of the curve. The more IPTV offers the greater the chance for glitches and errors in the delivery.
Companies such as Mixed Signals and RGB Networks have taken this opportunity to expand both of their product lines in order to accompany this industry shift.
Mixed Signals recently came out with an IP Stats enhancement to their groundbreaking Sentry solution aimed specifically at IPTV service providers and their unique needs. Using Sentry’s new IP Stats feature, service providers can perform root cause analysis on the IP network to both monitor the health of the network over time as well as alert service providers when there is excess time taken for a single packet to arrive, thus causing a delay. The upswing is that subscribers will enjoy glitch-free TV service from their telco.
RGB Networks released a product called the Modular Video Processor (MVP) that is touted as a complete IPTV solution, especially if you are interested in advertising on your IPTV networks. The MVP seamlessly inserts ads into video streams enabling telcos to capitalize on advertising revenues.
While most viewers are allergic to advertising, it’s a multi-billion dollar business and the revenue it generates can help telco IPTV service providers bankroll their operations, and maybe, just maybe, keep their monthly subscription rates down. Now that’s something viewers can enjoy, in addition to crystal clear pictures.
The tools for better IPTV delivery are there - Mixed Signals and RGB Networks are ahead of the curve and ready.
