IPTV 2.0The future of Broadcast Television

What is IPTV

IPTV (Internet Protocol Television) Delivers television programming to households via

a broadband connection using Internet protocols. It requires a subscription and IPTV set-top box, and offers key advantages over existing TV cable and satellite technologies. IPTV is typically bundled with other services like Video on Demand (VOD), voice over IP (VOIP) or digital phone, and Web access.

The Market

The number of worldwide IPTV subscribers will grow to almost 49 million by 2010 with worldwide IPTV-related revenue growing from $872 million to $13.2 billion from 2006 to 2010.

–Source, Gartner Group

Worldwide IPTV equipment revenue hit $423.9 million in the first quarter of 2007.

-Source, Infonetics Research

•The number of IPTV subscribers is forecast to hit 93 million worldwide by 2011

•Worldwide IP set-top box revenue grew 10% in 1Q08 over 4Q07

IPTV World Market Projections

-Source, IPTVDAILY.COM

Market Landscape

“Many options and many providers”

Paradigm Shift

Broadcast is Dead (Push to Consumer)

IPTV 2.0 (Consumer Centric) (“Pull medium”)

IPTV a Marketers Dream

• Measurable metrics and the ability to interact with the target give the marketer exacting tools in the toolkit.

• Think of combining the impact of a TV advertisement in a prime time slot with the stats you get from a website.

• Internet telephony into the mix and imagine your client watching an advertisement for pizza on the TV, pressing the 'call me' button and getting a call within seconds from the takeaway around the corner to take your order.

IPTV (STB) Set Top Box Categories

• Computer based IPTV http://www.hulu.com/ http://www.univision.com/content/channel.jhtml;jsessionid=JPPCBL5SIX210CWIAA4CFEYKZAAD0IWC?

chid=19641 http://beta.thewb.com/

• STB (Set Top Box IPTV)• http://www.scientificatlanta.com/• http://myhava.com/index.html• http://www.slingmedia.com/

• Game Console IPTV• http://www.xbox.com/en-US/• http://wii.com/• http://www.us.playstation.com/

The Technology

Components

•Data Center•Middleware•STB Set Top Box

Click to Chat

Social Media Component

Media Sharing

OpenSource IPTV

OpenSource IPTV

Examples: MythTV, Freevo

Marketing Opportunities

• “We believe the global IPTV market will reach approx. “50.5 million subscribers in 2010,” said Gary Schultz, principal analyst at Multimedia Research Group.

• IPTV offers significant advantages for highly targeted and interactive ads that cable cannot offer, meaning that telcos will have a technology advantage over cable – if they are savvy enough to use it.

• Wireless companies will also have advertising opportunities, either integrated with traditional cellular use, or in new media such as mobile data and video.

Measurable Marketing

• IPTV has the ability to provide comprehensive and myopic analytical measurement

• There will be content measurement, Social Media measurement and Gaming measurement as focus areas.

• All data will have the inherent ability to be overlaid with Demographic, Ethnographic and Psychographic datasets.

IPTV INNOVATIONThe next steps in IPTV

IPTV 2.0 What does the future Hold?

• Location-based traffic and weather reports• IM buddy lists• Real-time chat• Local theater tickets, ringtones• Live polls• Amazon-style e-commerce• Create and share home videos• Doctor and nurse house calls

Game Console IPTV

• Xbox– Has the ability to download TV shows on demand and stream

content as well. With their recent partnership with Netflix this platform will be a platform to watch.

• Wii– The Wii doesn't have a strong IPTV capability however it does have

the ability to view site like YouTube and hulu. There is a requirement of paying fro and downloading a web browser that is based on Opera technology.

• PS3– In the Gaming console market Sony understands what IPTV is and

how to leverage its technology. Sony is planning a major announcement with IPTV innovation in mind.

The Challenges

Long Term Challenges

What clients should know

• There is a very measurable and interactive medium that will yield deeper interactions with Brands. (IPTV)

• This is a paradigm shift from the traditional push methodology to a more viewer centric personalized experience.

• Ecommerce, polling and voting, increased social interactions, will all be part of the short term future of IPTV.

• The big picture is that all of the technology integration will enable consumers to have a digital relationship with multiple Brands and those Brands that exists in this sphere will be the “Digital Brands of the future”

What this means to Clients

• Myopic measurable marketing• Real-time analytics• Ability to cast polls, voting and receive more

instant feedback• Planning media buys will be more challenging

due to dynamic media pricing models • Will enable a more personal relationship with the

brand (digital couponing, brand preferences)

Challenges in the IPTV Market

• Infrastructure Costs to the Home• Cost for deployment/upgrades (GPON/TPON)• Telco implementation of IPTV infrastructure• Telco’s are interested in the average revenue per

customer (ARPU) *Erosion is a major concern here.• Market Demand (Urban vs. Suburban)• Advertizing Models (Revenue Models?)• Premium Content (Sustainability?)• Competitive Services WIMAX (Satellite?)

TELECOMMUNICATIONSINFRASTRUCTURE

IPTV Telecommunications Providers

Games Social

Media

Media

Sharing

Location

Based

Services

Game Platform

Integration

•Xbox360•Playstation 3•Nintendo Wii

IPTV + Social Media

• Facebook• Myspace• LinkedIn

PersonalMedia

• Photos• Personal

Movies• Music

Location Bases

Services

• Order a Pizza• Schedule a

Doctors Appointment

IPTV Innovation

Quality of

Service

Content IPTV

Advertizing

Social

Media

Buzz

MarketingMeasurable

RevenueLoyalty &

Engagement

Faster

Downloads

Interconected Services

Raymond A. Monaco PhDwww.armadadigital.com