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Understanding IPTVUnderstanding IPTVNRB 2008 – Nashville, TNNRB 2008 – Nashville, TN
Bernie ArnasonBernie ArnasonManaging Partner, Pivot Media LLCManaging Partner, Pivot Media LLC
March 8, 2008March 8, 2008
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Brief TV Entertainment History
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IPTV Defined
• Not “Web TV”– Internet Protocol Television
– Often confused with accessing video over the Web/Internet
– Uses the same networking technology/protocol as the Internet, but video services utilize a closed telecom network (most likely DSL or FTTH)
• Introduces a wealth of new features
IPTV expands upon traditional cable TV service by leveraging web and communications
technology to create a compelling entertainment experience.
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IPTV Fuels New Communications Features
TV Caller ID with TV “Pause” Feature
Screen shows Caller ID, program pauses. Consumer controls voice call w/ remote.
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IPTV Fuels New Communications Features
Frank wants you to join the Soccer Chat!
“red button”
Instant Messaging and Chat Functionality
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IPTV Fuels New Communications Features
Instant Messaging and Chat Functionality
Hi Philip, nice having you with us!
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IPTV Fuels New Communications Features
Instant Messaging and Chat Functionality
Frank Susi Philip Takashi Mohammed
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IPTV Fuels Web Type InterfacesBetter Organization and Presentation of Many Content Choices
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IPTV Helps Fuel On Demand Behavior
Beginning to see a shift in TV behavior – away from linear to on-demand
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IPTV Puts the Viewer in Control
Multiple Camera Angles – User Decides Which to Watch
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IPTV Today• Empowers Telecom Service Providers to Compete with Cable MSOs
– Completes the triple play bundle of voice , high speed Internet, and video– Cable industry has their own triple play bundle of video, high speed Internet, and
VoIP derived voice service
• High Stakes Competitive Battle– Possibility of losing entire subscriber to competition
• Previously, I might just lose one service– Puts DBS at serious disadvantage
• Unable to offer triple play bundle (for now)
12We are here, ready for broad market acceptance
MPEG-2 MPEG-4
IPTV Adoption
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IPTV Advantages/Disadvantages
• Advantages– Network architecture affords unlimited channel capacity
– Advanced features
– Allows telecom operator to utilize portions of its existing network
• Disadvantages– Challenged by high bandwidth applications like HDTV
– New technology – still several “kinks” to be worked out
– Content acquisition challenges
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IPTV Ecosystem
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Implications of IPTVExisting Pay TV Operators
• Formidable new competitor in telecom service providers
• Downward pressure on ARPU
• Increase in marketing budgets, particularly in emerging IPTV markets
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Implications of IPTVTelecom Service Providers
• Dramatic repositioning of company
• Extreme cultural shift
• $Billions in new CAPEX expenditures
• “Once in a lifetime” event
• Over 1000 telecom service providers in the U.S.
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Religious Broadcaster Opportunity
• Traditional carriage opportunities– Large carriers – direct deals\
– Smaller carriers – aggregator deals
• Avail Media, IP Prime, NRTC, NCTC
• Video On Demand– Future of TV?
– Leverage content libraries for a new distribution medium
– Extends to both IPTV and cable
• Internet/BroadbandTV– Video content distribution over the Internet
– Convergence of BroadbandTV and traditional pay TV
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www.telcotvonline.com
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Key Takeaways
• Television has been a part of our lives for over 60 years and it is rapidly evolving – IPTV is playing a significant role in this evolution
– Current evolution will result in an entertainment experience that allows consumers to receive their desired choice of content whenever and wherever they want to
• IPTV fuels a new variety of entertainment features and applications– Implications on traditional advertising/marketing
• Existing cable and DBS service providers need to prepare for a new competitor in the marketplace
• Telecom service providers are repositioning themselves as full service providers of telecommunications and entertainment services
• Religious broadcasters have a new distribution medium to exploit
