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IPTV iv Broadband meets broadcast IPTV Broadband meets broadcast The nework television revolution Contents Foreword About the authors Acknowledgements Preface 1 Introduction 1.1 1.2 1.2.1 1.2.2 1.2.2.1 1.2.2.2 1.2.2.3 1.3 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 1.3.7 1.4 IPTV Broadband meets broadcast Significance Telecommunications Telephone Television Networks Background Broadband Triple play Telco TV Open networks Navigation Interaction Regulation Summary i ii iii 5 6 8 8 9 10 10 11 11 12 15 17 17 19 26 26 27 28 2 The digital revolution 2.1 2.2 2.3 2.3.1 2.3.2 2.3.2.1 2.3.2.2 2.3.2.3 2.3.3 2.3.4 2.3.5 Convergence Online services Digital television Digital delivery Digital platforms Satellite Terrestrial Cable UK experience u UK digital television Broadcast channels High definition 30 31 33 39 40 41 42 42 42 43 4 4 47 47 Copyright m 2005 informitv/Lovelace Consulting Limited. All rights reserved. No part of this document may be reproduced or transmitted without the prior permission of the publisher. IPTV v Broadband meets broadcast 2.3.6 2.3.6.1 2.3.6.2 2.3.6.3 2.3.7 2.3.8 2.4 Non-linear services Interactive television Video-on-demand Digital video recorders Mobile services Digital switchover Summary 48 48 51 52 53 55 56 3 The network television revolution 3.1 3.1.1 3.1.2 3.2 3.2.1 3.2.1.1 3.2.1.2 3.2.1.3 3.2.1.4 3.2.2 3.3 3.3.1 3.3.2 3.4 3.5 3.5.1 3.5.1.1 3.5.2 3.5.2.1 3.5.2.2 3.5.2.3 3.5.2.4 3.5.3 3.5.3.1 3.5.3.2 3.5.3.3 3.6 3.6.1 3.6.2 3.6.2.1 3.6.2.2 3.6.3 3.6.3.1 3.6.3.2 3.6.3.3 3.6.3.4 3.6.3.5 3.6.3.6 3.6.4 Business drivers Bundled services Integrated networks Broadband Broadband access DSL Cable Fibre Wireless Broadband adoption Video compression MPEG VC-1 Broadcast television Network television Packet networks Internet protocols Streams Broadcast Unicast Multicast Switching channels Files Download Client-server Peer-to-peer Closed networks Cable networks System architecture Network system Hybrid system System elements Interface Middleware Set-top box Storage Protection Multiroom support Service elements 58 59 59 65 68 68 69 71 72 72 73 74 76 76 77 78 79 79 80 80 81 81 82 83 83 84 84 84 86 87 87 89 89 90 92 93 94 96 97 98 No part of this document may be reproduced or transmitted without the prior permission of the publisher. Copyright © 2005 informitv/Lovelace Consulting Limited. All rights reserved. IPTV vi Broadband meets broadcast 3.6.4.1 3.6.4.2 3.6.4.3 3.6.4.4 3.6.4.5 3.6.4.6 3.6.4.7 3.6.4.8 3.7 3.7.1 3.7.1.1 3.7.1.2 3.7.1.3 3.7.1.4 3.7.2 3.7.3 3.7.4 3.8 Broadcast television High definition Video-on-demand Interactive television Radio services Telephony integration Multimedia services Other services Open networks Network distribution Quality of service Streams Files Peer-to-peer networks Finding programmes Niche programmes Other services Summary 98 99 100 102 103 103 104 104 105 106 106 107 108 109 110 111 112 112 4 The emerging market 4.1 4.1.1 4.1.1.1 4.1.1.2 4.1.1.3 4.1.1.4 4.1.1.5 4.1.2 4.1.2.1 4.1.2.2 4.1.2.3 4.1.2.4 4.1.3 4.1.3.1 4.1.3.2 4.1.3.3 4.1.3.4 4.1.4 4.1.5 4.2 4.2.1 Players Distribution Telcos Broadband Cable Satellite Terrestrial Programming Broadcasters and channels Programming providers Aggregators Advertisers Enablers Hardware vendors Software vendors u Microsoft Systems integrators u Siemens Device manufacturers New entrants Consumers Markets Europe u FastWeb u Iliad: Freebox TV u France Telecom: MaLigne u Belgacom: Belgacom TV u Video Networks: HomeChoice u BT 114 114 114 114 115 116 117 117 118 118 119 120 121 122 123 123 521 126 721 129 131 131 132 132 3 6 7 9 2 5 3 3 3 3 4 4 1 1 1 1 1 1 Copyright © 2005 informitv/Lovelace Consulting Limited. All rights reserved. No part of this document may be reproduced or transmitted without the prior permission of the publisher. IPTV vii Broadband meets broadcast 4.2.2 4.2.3 u Swisscom: Bluewin u Telekom Austria North America u SureWest u SBC: U-verse u Verizon: FiOS TV u BellSouth u SaskTel: Max Asia Pacific u PCCW: Now Broadband TV u City Telecom: HKBN Digital TV u Chunghwa Telecom: Big TV Market size Market projections Business implications Network economics Fixed costs Long-tail distribution Network effects New entrants u DaveTV u Akimbo u Sling Media u Brightcove u Veoh Networks Impact Threats Opportunities Summary 941 2 5 1 153 4 6 9 0 1 162 3 6 1 661 961 171 172 174 174 174 175 177 178 9 9 1 2 3 184 186 187 190 191 7 7 8 8 8 1 1 1 1 1 5 5 5 6 6 1 1 1 1 1 4.3 4.3.1 4.4 4.4.1 4.4.1.1 4.4.1.2 4.4.1.3 4.4.2 4.5 4.5.1 4.5.2 4.6 5 Challenges 5.1 5.1.1 5.1.2 5.2 5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 5.2.6 5.3 5.3.1 5.4 5.4.1 5.4.2 5.4.3 Programming Rights Protection Technology Integration Standards Bandwidth Quality Scalability Availability Operations Customer service Marketing Presentation Interface Navigation 191 193 195 199 199 199 200 201 202 203 204 204 205 207 207 207 No part of this document may be reproduced or transmitted without the prior permission of the publisher. Copyright © 2005 informitv/Lovelace Consulting Limited. All rights reserved. IPTV viii Broadband meets broadcast 5.4.4 5.4.5 5.5 5.5.1 5.5.2 5.5.3 5.6 5.7 Promotion Personalisation Business models Advertising Distribution Competition Regulation Summary 209 210 211 212 213 214 215 217 6 Conclusions 6.1 6.2 6.3 6.4 Telco TV Broadcast Hybrid Open Source TV Closed and open networks 219 221 223 224 225 References Bibliography Glossary A Suppliers 228 233 234 241 Copyright © 2005 informitv/Lovelace Consulting Limited. All rights reserved. No part of this document may be reproduced or transmitted without the prior permission of the publisher.