Many A Slip Between Click And Chic

Yes, IPTV confuses even in most developed markets. An

Accenture study in the US, UK, Germany, France, Spain and Italy, to establish

how familiar consumers are with the aconcept of IPTV, found that 46% of the

respondents don't know what IPTV is. Even in the US, where respondents have

the highest IPTV awareness, more than one in four are uncertain of what IPTV is;

in Europe, the level of ignorance is stated to be 58%.

The research highlights significant levels of concern among

consumers that some of the problems associated with the Internet, such as

reliability, complexity and viruses, may also be associated with IPTV.

“Compelling TV content is the core foundation of any IPTV proposition.

Interactive functions, on-demand searching and other advanced services are of

interest to consumers, but TV programming-however differently it is presented

in the on-demand world-is what will continue to most attract consumers,” the

study states.

However, despite consumer uncertainty, the survey reveals

that the market for the services IPTV can provide is substantial in each

country. As part of the survey, respondents were asked what they would do to

make television better. The top two answers were “having access to a larger

number of movies,” selected by 30% of respondents and “being able to create

your own channel to watch programs whenever you want,” selected by 26%. When

asked what future benefits would encourage consumers to subscribe to an IPTV

service, the greatest number of respondents (55%) selected less advertising,

followed by the ability to choose specialist programs (47%). While there is

strong consumer interest in the concept of IPTV, the study indicates that

service providers must focus carefully on the marketing and associated end user

education to ensure widespread adoption of the service. 

Mohan

Tambe, managing director of Innomedia, now a Reliance

company, however, says that India was the first country in the world to have

started IPTV services (in 2002) in over 5,000 homes in parts of Jamnagar, Bombay

and Bangalore. “This has been through Reliance Netway network with CHOISpads

as the set top boxes,” he adds. Netway provides 100 Mb bandwidth to each

CHOISpad, and provides over 150 TV channels with pause/play, recording and other

facilities. The CHOISpad also has VOD facility, which has become extremely

popular. Based on this success, a commercial launch is being prepared by

Reliance.

More important will be Digital TV rather than IPTV, which

is the main differentiating factor from the traditional Analog TV, according to

Tambe. Digital TV displays MPEG2 videos with DVD like clarity. It can be carried

over terrestrial broadcast (DVB-T), satellite broadcast (DVB-S), cable broadcast

(DVB-C), or Ethernet (IPTV). Digital TV, irrespective of the source, can allow

pause/play, VCR functions, TV guide based recording etc. These features then,

are not the exclusive prerogative of IPTV.

How would you access the average consumer's perception

of IPTV in India?






Harish M, general manager-Business
Development, Texas Instruments:

The average consumer's perception

of IPTV in India today is that it will become a gateway for him/her to use it as

a mechanism to receive TV channels and also use it as an Internet access point

so that they have an option to use it for other benefits such as browsing and

email. Consumer's perception of IPTV will be through an additional set top box

using theexisting TV sets. IPTV offers the advantage of a bouquet of channels

for consumers to select their favorite TV channels.

Ashok

Waran, V-P, Engineering & Services and country manager, SupportSoft:

Consumers won't buy IPTV just like consumers didn't buy GPRS or 3G-people

pay for services and value. GPRS/3G enabled the success of picture messaging and

downloadable content.  IPTV is

important because it enables switched digital video which will, over time,

provide tremendous flexibility for programming, content delivery and

personalization (one of the features surveyed customers are looking for). India

has a robust content market, courtesy Bollywood, and video on demand is finally

achieving success in several markets (such as the US).

Forecasts vary widely on IPTV growth-ranging from 10.5 mn

subscribers globally by 2010 with about 1% of those in India (Informa-August,

2005) to 120 mn subscribers globally by 2010 with 47% in APAC (ABI

Research-2005). Regardless of the actual growth, millions of subscribers are

going to try IPTV for the first time in the coming years. The true test of IPTV

will be the initial and ongoing service experience.

Mohan

Tambe, MD, Innomedia: IP is better known as Intellectual Property,

than Internet Protocol. IPTV becomes a technical buzzword for carrying the TV

channels over the Internet. But why should this interest anyone? After all, the

proof of the pudding is in its eating. All that the consumer is interested in is

overall clarity, reliability and ease of use. There is no guarantee that this

would necessarily become better.

The Accenture study states that young people across the

sample countries are more aware of what IPTV is. Does this bode well for the

future of the technology and its service?



Harish M: Today, the

end consumers are tech savvy, especially the younger generations are more

comfortable with using the technology.

Ashok

Waran: Since the definition of IPTV varies widely, awareness of IPTV

is not important.  Just as VoIP is

typically sold as 'Digital Telephone', IPTV will likely be marketed as a new

type of television service. What is more important is the interest referenced in

the study regarding creating personalized “channels” and the willingness to

pay for new services (especially among younger people).

Mohan

Tambe: Television is watched by all sections of the population. How

is “young” at all significant? So long as the TV acts like a TV, everyone

will use it (without bothering about whether there is IP behind it). The study

is off-track as far as this point is concerned.

Cost is stated to be the most significant barrier

preventing IPTV adoption in developed countries (54% indicated they are not

willing to pay an extra fee to get an entertainment service). What possible

business models could evolve in India?



Harish M: In India, it

takes a disruptive business model to take IPTV service to the consumer. This can

only happen through offers that are attractive to the consumers so that they

need not make upfront investment but pay over time based on usage. Once the

benefits are understood by consumers, they can buy an integrated TV and thereby

change their TV sets.

Ashok

Waran:  As was proven by the rapid uptake of mobile wireless in

India, cost is an important factor.  Low

cost mobile wireless service attracted millions of new subscribers over a short

period. IPTV service will need to be cost competitive against existing video

services, to encourage adoption. The increased flexibility of switched digital

video technology, however, could enable new business models - more flexible

bundles, video on demand, more local content inserts and integration with other

broadband services. Because of the necessity to provide a low cost service to

consumers, automating installation and technical support as well as providing

self-service solutions will be critical to controlling service delivery costs.

The set top box, however, becomes a platform for future services (such as home

networking and VoIP).  Remote CPE

management can play an important role in unlocking enhanced features of the STB.

Mohan

Tambe: Cost has not prevented iPOD from gaining popularity. Finally,

it is the uncontested ease over existing alternatives which leads to adoption of

newer technology (even at higher prices). Look at the adoption of mobiles, in

spite of the much higher cost compared to the land phones. If we go beyond the

hype created behind IPTV, there should be no difference in cost — in fact, it

should decrease. So it would be safe to say that the cost should be the same as

what is being charged by the cable operator today.

How would you respond to the other concerns raised: (a)

Fear of virus attack on IPTV service (b) the need to purchase new TV equipment?



Harish M: IPTV

components are distinctly different from PCs. Service providers will need to

counter the perception of virus attack risks with fact-based arguments. The need

to purchase new TV equipment will not work in India as the service

providers will likely have to subsidize or even give away

set  top

boxes  in order to attract

new subscribers and further reduce upfront costs.

Ashok

Waran: Service providers will have to take an approach similar to the

mobile wireless market for handsets-give away set top boxes. This has two

impacts-the need to make the initial installation fast and of high quality and

the need to keep subscribers happy post-installation to achieve breakeven and

the profitability per subscriber. An IPTV set top box, however, can be much more

than just an interface to the TV-the STB can also serve as a wireless

router/high speed Internet access point and/or VoIP (telephone) interface.

Remote management of the STB can play a key role in providing

self-service upgrade options to unlock enhanced capabilities of the STB.

Mohan

Tambe: There can be no problem of virus attack, so long as the IPTV

is not running on a PC, but a dedicated device. There is of course, no need to

purchase any new TV equipment.

Goutam Das



goutamd@cybermedia.co.in