Skip to main content

IPTV Up Against Tough Competition

Telcos may be counting on IPTV to revitalize their businesses, but the competition they will face in the pay TV market will be expensive, relentless and possibly damaging. Cable and direct broadcast satellite (DBS) providers have been battling it out for PayTV subscribers and both are readying to take on IPTV.

Some of the satellite broadcasters have been experiencing significant growth, including the US provider, DirecTV, which added about 1.5 million subscribers in the year ending June 30, 2005 and the UK�s BSkyB still accounts for more than half of the UK�s PayTV subscribers.

"Satellite broadcasters� recent wave of success stems primarily from their exclusive content arrangements delivered along with superior value-added services," says Pyramid Research Senior Analyst Ozgur Aytar. Both DirecTV and Sky have invested heavily for the exclusive programming rights of sporting events including NFL and the UK�s Premiership. Aytar points out, "IPTV and digital cable providers are promising to change the way we watch television, but satellite companies are already transforming their customers� TV experience by introducing enhanced, interactive and personalized features and services."

In competitive PayTV markets, the key to telco success will lie in their ability to leverage triple play � bundled voice, video and broadband, combined with premium content to attract and retain customers. Satellite broadcasters have remained outside of the triple play ballpark largely due to technological limitations. They are focusing on what they do best (video) and will consistently seek to overbid cable and telcos for premium content. As competition heats up, however, they will be tempted to mimic the triple play business model, primarily through acquisitions.

Popular posts from this blog

Global Rise of Domestic Payment Ecosystems

Alternative Payment Methods (APMs) – comprising digital wallets, instant payments, and QR payment systems – are experiencing explosive growth that's reshaping the global financial services marketplace. According to the latest worldwide market study by ABI Research , the combined global transaction value for APMs is projected to reach $142 trillion by 2030. What's particularly fascinating is the underlying driver behind this trend: a growing desire for financial sovereignty, with nations developing domestic payment ecosystems rather than remaining dependent on international financial networks. Payment Ecosystem Market Development In 2024, approximately 45 percent of the global population used digital wallets – a remarkable adoption rate for a technology that barely existed a decade ago. China leads this transition, with 95 percent of its population using WeChat's payment functionality. WeChat exemplifies the "super app" phenomenon, where payment capabilities are in...