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