Television Bureau of Advertising 1 Internet Protocol Television (IPTV) Updated November 2009 Tips to Viewing PowerPoint On-Line in Slide-Sorter View (multiple.

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Presentation transcript:

Television Bureau of Advertising 1 Internet Protocol Television (IPTV) Updated November 2009 Tips to Viewing PowerPoint On-Line in Slide-Sorter View (multiple slides): 1.Right click anywhere on this slide. 2.Choose “Edit Slides” from the drop-down list. 3.In the lower left corner of the window, choose the icon.

2 Table of Contents Slides Definition 33 IPTV Statistics IPTV Subscribers IPTV Revenue88 IPTV Benefits99 Challenges to Proliferation 1010 Companies Involved in IPTV1111 IPTV Services Glossary

3 Definition of IPTV & Access Requirements IPTV is a two-way digital television signal delivered over an IP network via broadband. The broadband service may be supplied by a telco, cable, satellite or Internet service provider. Television sets or computers with converter boxes that decode the IP video and convert it into standard television signals can access IPTV.

4 IPTV Worldwide Statistics & Forecasts Point Topic research reported 11% growth for IPTV worldwide, reaching 26.9 million subscribers in 2Q09. According to research from Parks Associates, the number of telco/IPTV households worldwide grew by about 80% in 2008, exceeding 20 million. In fourth quarter 2008 and first quarter 2009, IPTV added 2.5 million and 2.3 million subscribers worldwide, respectively. Global IPTV subscribers will rise to 33.3 million subscribers at the end of 2009, up 56% from 21.3 million in In 2010, worldwide IPTV subscribers will rise another 56%, to reach 52 million. By 2013, the number of subscribers will double, reaching million. Source: Reuters 7/21/09, iSuppli Corp. data cited in Electronics News about-electronics.eu 9/1/09

5 IPTV U.S. Statistics & Forecasts North American IPTV subscribers grew 113% in 2008, from 1.75 million in 2007 to 3.84 million in The U.S. IPTV market will grow from over 5 million subscribers in 2009 to 15.5 million by At the end of first quarter 2009, almost half of the global IPTV subscribers were located in Europe. Parks Associates suggests that telecom operators can differentiate and become more competitive by offering interactive services, unique search and discovery elements, home networking, and enhancements to customer support. Source: Reuters 7/21/09; Strategy Analytics data cited in tvover.net 9/1/09; iSuppli Corp. data cited in Electronics News about-electronics.eu 9/1/09

6 IPTV Subscriptions Worldwide Subscribers(Thousands) Region 2008Q22009Q2 Source: Point Topic data posted in Telecomtiger.com 9/14/09 North America2, Western Europe, Middle East & Africa8,4281,2416 South & East Asia2, Asia Pacific2, Eastern Europe6551,215 Latin America1453

7 U.S. IPTV Subscribers Source: eMarketer 4/1/08

8 IPTV Revenue IPTV worldwide revenues are expected to increase to $58.2 billion by 2013, from $9.3 billion in 2008 according to iSuppli. Revenue is growing faster than subscribers because of an increasing average revenue per user (ARPU). IPTV global service revenues will approach $14 billion in 2012, from $694 million in 2007, according to Strategy Analytics. Accenture projects that the IPTV market could be worth $17 billion a year by Marketers should benefit from the ability to target ads on IPTV, similar to online ad targeting. Source: about-electronics.eu 9/1/09; eMarketer 5/13/08,4/22/08

9 IPTV Benefits Telcos are looking for new revenue streams. IPTV is another distribution venue for content providers. Consumers want more choice in on-demand content. New technology has reduced bandwidth requirements. All types of information can be embedded in the video stream. No limit to the number of possible TV channels. Global demand is continuing to speed innovation. Deployment costs are lower. Push to personalization to give users greater control. Source: Digital TV 6/1/05

10 Challenges to Proliferation of IPTV Securing content. Agreeing upon standards. Developing workable partnerships that will allow telcos to compete. IPTV from telcos can only grow at the expense of its rival cable & satellite providers. Roadblocks from cable industry on the local regulatory issues and franchise fees. Lack of technical standards for hardware and software. Lack of awareness among consumers.

11 Companies Involved in IPTV IPTV is part of the “triple-play” convergence of voice, video and data, and companies involved are from all three areas of these businesses. Telephone companies or telcos, are offering high speed data lines capable of sending IPTV and voice and data. Cable companies with interactive technology are capable of data and VoIP in addition to video transmission. ISPs want to compete in this potentially lucrative market by offering telephony in the form of VoIP, plus video and data transmissions.

12 IPTV Major U.S. Services Telcos and cable companies are conducting IPTV trials and launching services. Here are some of the current services.

13 Verizon’s FiOS Internet and TV Services Verizon launched its first local TV channel called FiOS1 to FiOS TV subscribers in the Washington DC metro area on March 30, FIOS TV customer base will grow 12% in third quarter 2009, exceeding 2.8 million total subscribers. Verizon added 300,000 FiOS TV customers during the second quarter FiOS TV has more than 300 digital channels and 22+ local and national HDTV channels, plus a digital video recorder and access to 2,300 on demand titles. FiOS TV is now available to over 9.7 million households in parts of 16 states. The company expects its FiOS fiber-to-the-home network to reach 9 million homes by the end of the year, and 18 million by the end of the decade. Source: Strategy Analytics data cited in Business Wire 10/21/09; Verizon Press Releases, October 2009

14 AT&T’s U-verse: IPTV to the PC U-verse’s subscriber base had reached 1.6 million at the end of June The company announced that the 30 million homes passed goal has been pushed back to 2011, citing the difficult economic environment. AT&T’s U-verse is currently available to about 17 million U.S. TV households. Subscribers can access about 200 channels, several of which feature live programming, including The Weather Channel and Bloomberg Television. The service is now available in 79 markets in 16 states nationwide. Media Daily News 10/09, 9/18/09; tvover.net 9/1/09

15 Glossary for IPTV A list of definitions and acronyms for this industry follows.

16 Glossary ADSL – Asymmetric Digital Subscriber Lines. Technology that allows more data to be sent over existing copper telephone lines. Most popular modem technology worldwide for broadband access. ARPU – Average Revenue per Unit/User. Term used by telephone carriers for measure of average monthly revenue generated by each customer unit. ATIS – Alliance for Telecommunications Industry Standards AVC – Advanced video compression, like MPEG-4. CLEC – Competitive local exchange carrier, such as Regional Bell Operating Companies (RBOCs) GTE, AllNet, etc. Telephone company that competed with the already established local telephone businesses. Converged services – Combined services of voice, data, and video from one company. DLNA – Digital Living Network Alliance, consumer electronics companies trying to establish standards for digital home concept. DRM – Digital rights management; term referring to technical methods used to handle the valuation and monitoring of rights held over a digital work. DSL – Digital Subscriber Line, provides digital data transmission over the wires used in the “last mile” of a local telephone network.

17 Glossary DTH – Direct-to-home satellite television. A digital receiver is needed to receive the multiplexed signals and view them on a TV. DTT – Digital Terrestrial Television, the means of receiving digital television using an aerial. DVB Forum – Digital Video Broadcasting Project, an industry-led consortium of over 300 broadcasters, manufacturers, network operators, software developers, regulatory bodies and others in 40 countries committed to designing global standards for the delivery of digital television and data services. Ethernet – Computer networking technology for local area networks (LANs). FiOS – Fiber Optic Service, is a fiber to the premises (FTTP) telecommunications service offered by Verizon, the first major U.S. carrier to offer broadband Internet access. Verizon is also developing a television service with fiber optic lines, and is expected to become a major competitor of local cable television companies over the next 10 years. It will compete with current “Triple Play” offers, where the local cable company offers broadband Internet access, digital cable, and VoIP telephone service.

18 Glossary FTTP – Fiber to the Premises or Fiber to the Home (FTTH) refers to a broadband telecommunications system based on fiber optic cables for delivery of multiple advanced services such as the triple play of telephone, broadband Internet and television to homes and businesses. IEG – IPTV Exploratory Group formed by the ATIS to develop industry standards among member telcos. IIF – IPTV Interoperability Forum created to coordinate standards activities, develop agreements and assess interoperability issues. ILEC – Incumbent Local Exchange Carrier. Telephone company that was providing local service when the Telecommunications Act of 1996 was enacted. iMP – interactive media player IPG – Interactive electronic program guide

19 Glossary IPTV - Internet Protocol Television describes a system where digital television service is delivered to subscribers using Internet Protocol over a broadband connection. This service is often provided in conjunction with Video on Demand and may also include Internet services such as Web access and VoIP, called Triple Play and typically supplied by a broadband operator using the same infrastructure. A simpler definition would be television content that, instead of being delivered through the traditional format, is received by the viewer through the technologies used for the Web. LLU – Local loop unbundling. the process of allowing telecommunications operators to use the twisted-pair connections from the telephone exchange’s central office to the customer premises. This local loop is owned by the incumbent local exchange carrier (ILEC). Packet Switched Network - network technology that breaks up a message into small packets for transmission. Unlike circuit switching, which requires the establishment of a dedicated point-to-point connection, each packet in a packet-switched network contains a destination address. Thus, all packets in a single message do not have to travel the same path. As traffic conditions change, they can be dynamically routed via different paths in the network, and they can even arrive out of order. The destination computer reassembles the packets into their proper sequence. Network protocols such as IP and IPX were designed for packet-based networks.

20 Glossary POTS – Plain old telephone services, delivery over copper telephone lines/wires. RBOC – Regional Bell Operating Company, like GTE, AllNet, etc. SMS – Short message service. text messaging on mobile phones. SVOD – subscription video on demand. Triple Play - expression used by service operators describing a consumer package including telephony, data and video. Offering triple play on a broadband connection requires the use of IPTV and IP Telephony (VoIP). VDSL – very high bit-rate DSL. VoIP – Voice over Internet Protocol is the routing of voice conversations over the Internet or any other IP-based network. The voice data flows over a general-purpose packet-switched network, instead of traditional dedicated, circuit-switched voice transmission lines.

21 Thank You!