1. Developing an IPTV Product
Layne Sisk
Serverplus/real Choice TV

2. Introduction
Who I am
Background and why I was asked to speak on this topic
Why offer IPTV?

4. Important terms to know
IPTV
OTT
Closed Network
Retransmission Rights
Transcoder/Encoder
Set-top Box
MVPD- Multichannel Video Programming Distributor
Off Air
Big 4
Must Carry
Head End
Multicast/Unicast

5. What do cord cutters want?
66% of pay TV customers 45 years of age and up feel strongly or very strongly that they waste their money by paying for channels that they do not want or watch, more than any other age group:
 years of age: 48%
 years of age: 56%
 years of age: 58%
o ABC, CBS and NBC were the only networks chosen as must-have by more than 50% of survey respondents
 Every network was selected by at least 5% of survey respondents
 Aside from the broadcast networks, History was chosen by the most respondents with 43%
 Altitude (RSN) was the network chosen the least at 5%
*source July 2016 web survey of ~5,000 household video decision makers See handout for more details
o Respondents chose 50% to 100% more must-have channels than the average number of channels watched in a week
 years of age: 28 channels chosen as must have v. 14 channels watched on average
 years of age: 42 channels chosen as must have v. 21 channels watched on average
 years of age: 38 channels chosen as must have v. 19 channels watched on average
 years of age: 25 channels chosen as must have v. 16 channels watched on average
 55+ years of age: 20 channels chosen as must have v. 14 channels watched on average
o Respondents <35 years of age value premium channels the highest while respondents >35 years of age value
broadcast networks the highest
o Both pay TV subscribers and non-subscribers value broadcast networks the highest of all the networks
 Non-subscribers, unsurprisingly, did not include ESPN in their list of top 30 valued networks
o Price and provider choice are the two most important non channel attributes chosen by respondents
 The ability to fast forward through ads is the least important non channel attribute

6. Where to start What do you want to offer? Who are your competitors?
Do you have the bandwidth to run the infrastructure and handle reporting?
Middleware
Head end/feed
NCTC- National Cable Television Cooperative
MVPD vs OTT
Negotiating Retransmission Rights

7. What content do you want to offer?
Locals Only? Very low margins
Locals and free channels? Maybe better margins
Cable Only? Compete with Sling and Vue
Full Lineups?
Premium?
PPV?

8. Data courtesy of Altman Vilandrie & Company annual consumer video survey, July 2016

9. Data courtesy of Altman Vilandrie & Company annual consumer video survey, July 2016

10. Data courtesy of Altman Vilandrie & Company annual consumer video survey, July 2016

11. Data courtesy of Altman Vilandrie & Company annual consumer video survey, July 2016

12. Data courtesy of Altman Vilandrie & Company annual consumer video survey, July 2016

13. Data courtesy of Altman Vilandrie & Company annual consumer video survey, July 2016

14. Data courtesy of Altman Vilandrie & Company annual consumer video survey, July 2016

16. Required infrastructure
Bandwidth requirements
SD 2 megs
HD 5-7 Megs
4k 20 Megs
Receivers
Satellite dishes (see subsequent slide)
Off Air
Transcoders
Encode to MPEG-4 or HLS to get the bandwidth down to a manageable level
Hard drive space for DVR- We currently have 150 TB for 30 days (copywrite issues)
Billing
Bandwidth shaping

17. Middleware Rovi- Channel guide grid Channel Management/App DVR
Digital Rights Management
Mobile Devices

18. Head end/Satellite feed
Dishes and receivers- Fixed cost
Receiver and transcoder cost approx. $2000 per channel to add each channel in bulk (25+ channels)
Audit for security and reliability

19. NCTC National Cable Television Cooperative
Grouped rates, help to negotiate prices for many providers
Package requirements

20. Mvpd vs ott
MVPD
Closed network, can provide all locals including national sports and live prime time shows.
Examples- Cable, Dish, Direct
OTT
Some cable channels
Can provide some local content but with blackouts of certain shows.
Examples- Sling, Vue, YoutubeTV

21. Retransmission Rights
Over the Air Channels- Between $3 and $4 per channel for Big 4
Traditional Cable Channels- ESPN, Turner, FOX often require you take several of their channels Prices vary greatly with regional sports being the most expensive.
Internet Channels- Often free, but less reliable
International Channels
Specialized MDU pricing

22. Thank You!
Layne Sisk