& cplSiteName &

Telcos & TV: Will Going Everywhere Take Us Somewhere?

Aditya Kishore
11/3/2010
50%
50%

Today, tens of millions of households around the world receive pay-TV services from their telco – an accomplishment on which service providers can congratulate themselves.

IPTV is projected to grow steadily over the next few years, largely at the expense of cable operators. However, in order to do so, service providers must find ways to pull customers away from their existing pay-TV operators. This means finding the right services, features, and packages that can tempt customers to switch providers.

The annual TelcoTV event is coming up next week, and US service providers will have an opportunity to review their progress so far and look to what comes next. The theme of this year's show – "Profiting in a Multi-Screen World" – offers some insight into current pay-TV trends.

US cable operators' efforts to offer video content over the Internet have garnered plenty of press of late. In fact, these efforts have been motivated by over-the-top (OTT) providers such as Hulu LLC , taking over what pay-TV operators see as their role. Service providers around the world now offer some quantity of video content online (and where they have mobile arms, on mobile devices as well). In a recent Heavy Reading survey of service providers, nearly 80 percent saw it as important to their business to offer video across multiple devices.

OTT video isn't just a competitive challenge for pay-TV operators. Given that most are also Internet service providers, it's also a network management challenge. Video traffic on the Internet is exploding, and forecast to grow fivefold. Network operators are watching the dramatic increases in network traffic with a wary eye. They are also seeing an impact on their operational costs in many cases, as well as potential deterioration in end-user QoE. Creating new online video distribution services of their own will only adds to this challenge. Operators are looking for ways to manage and potentially monetize OTT video. They are also looking for ways to integrate these OTT services into their pay-TV experience for their customers.

Another challenge is protecting content as its leash becomes increasingly longer. Content owner negotiations are difficult enough without concerns about content security. New mechanisms that protect content across devices are required, coupled with authentication and authorization capabilities across devices.

The increasing complexity of the home is another issue. Apart from the issues involved with provisioning, activating, and setting up a new IPTV home, now operators must contend with multiple devices and networks – MoCA, WiFi, HPNA, 3G/4G, etc. – that may be involved with video delivery. The technological requirements are complex, but service assurance and support will be a challenge in itself.

But perhaps the biggest challenge operators confront is figuring out what comes next. What will be the next big thing, the next "killer app" that will drive adoption and revenue? What new service or functionality will consumers look for from their provider that could define success or failure in the coming years?

We at Heavy Reading will be offering some insights via our annual TelcoTV pay-TV subscriber survey, presented on Wednesday, November 10 at noon in the Titian Room. As in previous years, the survey explores consumer attitudes toward their pay-TV providers, their satisfaction levels, additional services they are getting from their pay-TV operator, and their potential for churn. This year, we will also be looking multi-screen issues, examining consumption of online video, mobile video, interest in 3DTV, multi-screen video services, place-shifting, and targeted advertising.

— Aditya Kishore, Senior Analyst, Heavy Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
More Blogs from Heavy Lifting Analyst Notes
Cable is well on the path to meeting 5G backhaul and small cell requirements; however, cable may face competition from mobile network operators (MNOs) and find challenges in technology and regulation limitations.
Taking the pulse of NFV and SDN deployments.
Although many service providers have already deployed software-defined wide area network (SD-WAN) technology and believe it is an integral part of their business, a clear path to vendor success and long-term revenue isn't yet visible.
The Internet of Things (IoT) is growing rapidly, but the lack of standards as well as uncertainty about its revenue potential is a major source of frustration for communications service providers (CSPs).
Whatever strategy CSPs adopt in the emerging IoT landscape, a critical enabler of their IoT business will be the monetization engine.
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 2, 2017, 8 Northumberland Avenue London
November 10, 2017, The Westin Times Square, New York, NY
November 16, 2017, ExCel Centre, London
November 30, 2017, The Westin Times Square
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Is US Lurching Back to Monopoly Status?
Carol Wilson, Editor-at-large, 10/16/2017
Muni Policies Stymie Edge Computing
Carol Wilson, Editor-at-large, 10/17/2017
'Brutal' Automation & the Looming Workforce Cull
Iain Morris, News Editor, 10/18/2017
Pai's FCC Raises Alarms at Competitive Carriers
Carol Wilson, Editor-at-large, 10/16/2017
Worried About Bandwidth for 4K? Here Comes 8K!
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 10/17/2017
Animals with Phones
Selfie Game Strong Click Here
Latest Comment
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives