TV viewing over the Internet the end for IPTV?

Manoj Solanki, Sunday May 20, 2007 - 7:44 PM

Could the likes of Google and Yahoo! Video squeeze out specialised Telco IPTV services such as BT Vision?

At the IPTV World Forum event in March 2007, it was asked what the potential impact of Internet TV will be on the strategies and success of operators of closed, proprietary IPTV systems.

Some experts believe that the success of video over internet services from the likes of Google, Yahoo! and Joost enable consumers to bypass telco and traditional TV services by viewing their chosen content over the Internet.  Telcos may well be used only to deliver the network services rather than have any control of what content is actually delivered.

So is this growth in Internet TV likely to threaten IPTV services? We asked BT and Tiscali to give their views on the expanding Internet TV market and their own IPTV offerings.

No threat to IPTV

BT said that there is no threat to IPTV services such as BT Vision, their recently launched IPTV service. BT Vision currently has around 5,000 live customers with good feedback reported on the service, along with plenty of pre-registration interest.  BT is currently launching it’s first major marketing campaign.

A BT spokesman said “We believe there is a middle market for services like BT Vision, where customers may not necessarily just want the standard Freeview channels, but also do not want to pay a high subscription fee every month for a service like Sky or Virgin Media.  This way, customers do not have to pay any extra, but pay for the content as and when they decide they want it.”

Tiscali also believe there is no threat to IPTV services from TV over Internet. A spokesman told us that Tiscali are very active in both markets, with TV content available for viewing and download through the Tiscali website portal and their IPTV service, Tiscali TV (previously Homechoice).  They also believe that TV viewing will always be at the heart of family viewing for viewing quality and pleasure.

The future of IPTV

BT said it is difficult to predict where the future of IPTV will lead, but believes there are exciting prospects with the ability to deliver tailor made content for a viewer.  Customers can have more control and the ability to personalise their viewing habits, rather than having to tune in at a specific time to watch a programme.

On the same note, Tiscali said there is a clear trend toward user control and allowing users to make their own schedule of TV programmes.  For example Tiscali can currently offer 6000 hours worth of TV content on demand.

Many analysts and experts have predicted that millions of homes in the UK will have IPTV services within the next few years.  The quality of service will also need to be there, as this will be of great importance to attract customers.  In February 2007, research from Accenture in October 2006 found that many analysts are concerned about quality of service due to unproven architectures and low bandwidth issues.

However, these are only seen as short term obstacles and confidence in the IPTV market as a value proposition in the long term is relatively high.

Annelise Berendt, Principal Analyst at Ovum also commented on the questions raised:

“We believe there is room for both IPTV and Internet TV, and that players from both camps will be more successful with certain consumer segments than others. At present, where they offer the same content – which is not and will not always be the case – what these two camps essentially provide is a choice in the method for watching a particular piece of content.

“It’s quite possible that one day we will see a “Joost” or “Google” IPTV channel or even service as part of a telco’s proprietary IPTV offering.” she added