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Enriching TV experience2

  • Author:Esmart
  • Source:Esmart
  • Release on :2018-01-19
IPTV challenges

While premium content is expensive, IPTV operators need to offer their customers the type of content that would convince them to pay for it. “This is especially suitable in this region where customers are used to getting TV services for free. Content could present around 50% of a telecom operator’s CAPEX related to IPTV, which is quite significant. The challenge here, however, is that the return on your investment can only be achieved once you have the critical mass,” says Raad. He thinks that the incumbents in this region do have money, and if the business case is positive, they can pay it upfront and get their investment back.

As an operator, Faraidooni thinks that there is a high acquisition cost for on-demand content, which represents a big challenge for operators. He says that content acquisition expenses consist of costs incurred in obtaining content from studios, distributors and other suppliers through direct purchases, revenue sharing agreements and licence agreements. If you'd rather jump straight to the products then follow the link to cheap mini pc in china .



In addition, he says that the lack of IPTV rights for linear channels is the other main challenge faced by operators. “Content needs to be secured during transmission, and usage rules need to accompany a piece of video content throughout its usage lifespan, which may include storage within the customer premises equipment (CPE) itself, distribution to client devices within the home, and eventually distribution outside the home to a mobile device as well. As a result, for service providers to offer their subscribers next-generation flexible usage scenarios, traditional conditional access needs to morph into digital rights management,” Faraidooni says.

Services competition

Considering the fact that there are about 500 free-to-air channels in this region, Raad says that the positioning of IPTV should be complementary. “In fact, IPTV is one form of PayTV. By being over a broadband internet connection, IPTV has the ability to provide interactive and value-added services, which will also make it easier to provide over the top (OTT) services,” he says. “There are lots of OTT providers who will provide TV services over the internet or broadband connection, and hence, this will turn out to be a difficult case for cable TV operators,” he adds.

The same is also the case with satellite operators which cover over 90% of households for traditional satellite services. “In the near future, IPTV will complement its service by having premium interactive services,” says Raad.

Custom advertising
IPTV also allows for personalisation of a customer’s viewing patterns that could lead to effective targeted advertising. This, Raad believes, will put telco operators in a strong position to look at segmentation in program viewing, which will strengthen their position with IPTV services.

Faraidooni says that when TV is delivered on an IP network, be it the internet or a private network, a “unique one-to-one bi-directional relationship” is created between the service provider and the end-user. “This has opened up a world of new services targeting segmented audiences,” he says. “A video-on-demand (VoD) session can even be seen as a service being sold to an individual household,” Faraidooni adds.

Raad says that for targeted advertising, however, there needs to be a critical mass to address the advertisement campaigns, which is not present yet. “The challenge involves building the critical mass and then, convincing advertisers that this medium could be more effective than channel advertising. Currently, this is still a few years away from reality,” he says. For a top streaming experience you'll need a OEM iptv box  manufacturer china.

OTT Potential

Internet TV, which has the same look and feel of IPTV, is delivered over the open public internet or over the top of existing networks. Faraidooni says that OTT is enabling content offerings over non-guaranteed bandwidth networks and as such is interesting for content offerings over normal broadband packages.

“When delivering content over a platform that is not controlled by you, as in the case of YouTube for example, one cannot guarantee the access quality. There are still issues with the video quality, and users generally need some technical know-how to set it up. In addition, internet TV is not a controlled environment and there are therefore no guarantees regarding accessibility, availability and reliability,” he says.

Motorola’s Turken sees OTT as a high potential environment. “If operators find the right mechanisms from a business as well as technological perspectives, they can use it to complement their existing services,” he adds.

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