NEWS: Success hinges on content

INTERNET Protocol Television (IPTV) service providers have to compete aggressively against satellite and terrestrial TV stations in terms of acquiring content and getting subscribers.

According to Frost & Sullivan industry analyst Adeel Najam, an IPTV service will not be successful without a solid content strategy.

In-house content production by the IPTV service provider will not be feasible in the short-term, he said. The service provider will need to build partnerships with content owners.

“They can also offer niche content for different segments of the market that are not catered for by existing TV stations,” he said.

An IPTV service provider will need to aggressively market its service. It should bundle multiple services — voice, broadband Internet and IPTV — to maximise value for its consumers.

Initially, the service provider may need to offer free trial packages to allow consumers to sample IPTV.

Hurdles

Najam said IPTV services have been successful when they have been able to differentiate themselves from the services of other TV providers, as well as provide ­additional value for consumers.

In Malaysia, any IPTV service provider must offer innovative extras, such as ala-carte content packaging, time-shifted viewing, online shopping, and high-­definition TV.

The tallest hurdle for an IPTV service provider would be exclusive content-ownership by TV stations, which can can hamper the growth of a new IPTV operator in the market.

Some IPTV service providers have had to struggle to obtain content that is in demand by consumers, and have had to make heavy investments as a result.

The other challenge is the availability of constant high-speed broadband in the country. A standard-definition TV channel on an IPTV network requires about 4Mbps (megabits per second) bandwidth while a high-definition TV channel requires 7Mbps to 8Mbps.

Multiple HD streams combined with bandwidth for Internet access and VoIP (Voice-over-Internet Protocol) phone service require bandwidths in the range of 20Mbps to 30Mbps.

In the Asia Pacific region, IPTV services have been successfully rolled out by carriers such as PCCW and HKBN in Hong Kong, as well as China Telecom and China Unicom.

The other carriers include Chunghwa Telecom in Taiwan, SingTel in Singapore, NTT in Japan, as well as SK Broadband and KT in South Korea. — SUBASHINI SELVARATNAM