Light Reading
US service providers will explore how to profit in a multi-screen world at next week's annual TelcoTV event

Telcos & TV: Will Going Everywhere Take Us Somewhere?

Aditya Kishore
Heavy Lifting Analyst Notes
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
More Blogs from Heavy Lifting Analyst Notes
New streamlined methodologies for data processing, analysis and storage are needed for testing virtualized network functions.
Network operators have a unique opportunity to develop and profit from IoT-as-a-service propositions.
Cloud enablement partnerships between traditional communications service providers and cloud specialists are set to proliferate in the coming years.
Communications service providers are looking to play an integral role in the M2M (machine-to-machine) value chain, but it's not easy.
Many US utility companies today are caught in a crisis of identity, progression and even purpose.
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Documentaries
Paul Bunyan's Giant Gigabit Plans

12|22|14   |   03:26   |   (0) comments


Gary Johnson, the CEO and GM of Minnesota rural operator Paul Bunyan Communications, discusses the company's 5,000-square-mile gigabit network rollout.
LRTV Interviews
CenturyLink: Building the Case for NFV

12|19|14   |   02:14   |   (0) comments


At the 2020 Vision Executive Summit, James Feger, VP, Network Strategy & Development at CenturyLink, talks about how the US operator is approaching virtual network functions from an operational and business case perspective.
LRTV Interviews
Liberty Global Sees Business Goldmine

12|18|14   |     |   (0) comments


Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (2) comments


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
Upcoming Live Events
February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
T-Mobile, BlackBerry Flirt With Reuniting
Sarah Reedy, Senior Editor, 12/17/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
Comcast Launches 4K Streaming Service
Alan Breznick, Cable/Video Practice Leader, 12/18/2014
US Carriers, You're Going to Cuba!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/18/2014
Google Steering Android Towards Cars – Report
Dan Jones, Mobile Editor, 12/19/2014
Like Us on Facebook
Twitter Feed
Webinar Archive