Tag Archives: p2p

How Can IPTV Telcos Defend from Online TV?

Some facts about Online video:

  1. Online TV is growing. The number of people watching online video will grow from 563 million in 2007 to 941 million in 2013 according to ABI research, echoed by NewTeeVee.
  2. People watch far more hours of TV from the couch than on the PC. According to Nielsen (see table above found via GigaOm), 142 hours/month for TV versus only 2.5 hours/month for Internet video. Online TV will sure grow, but still a long way to catch the habit of watching TV from the sofa. A habit that will surely remain for long duration shows, like movies or NBA games.
  3. TV devices connected to Internet will grow from 28 million in 2007 to 300 million in 2013 according to IMS research echoed by NewTeeVee.
  4. Some lucrative consumer segments are ready to pay for quality, speed, ease-of-use and exclusive content (e.g. Apple knows very well this segment). Some reports foresee penetrations as high as 20% and even 50% in developed countries urban areas.
  5. Online TV is social. YouTube social component is part of its success. Joost has just added Facebook Connect.
  6. P2P will keep growing, and that includes also a growth of licensed content relying on P2P or P4P networks, although illegal traffic will still dominate for some time.

IPTV Telcos should defend from the threats of Online TV by embracing it:

  • Address facts 1 to 4 by providing a one-stop-shop to integrate Online TV within the IPTV Service. Provide a quick, easy-to-use way to enjoy Online TV from the couch, integrated into the IPTV Service. Why not embed iTunes, YouTube or Hulu channels?
  • People will manage to have only two to three devices connected to the TV in the living-room. IPTV Telcos should position their set-top-box to be the box to connect the TV set to Internet without hassle (including legal P2P) and in the way defend from other boxes that could make IPTV replaceable later (e.g. Apple TV, PC2TV or HTPC units).
  • Add Facebook Connect to IPTV, so that you can see who of your friends is watching the show, or browse what shows your friends are watching.

In other words, keep the boxes from “over-the-top” players away from the living-room for as long as possible. Differentiate from the “over-the-top” players with the unique experience that IPTV can provide on exclusive live HD content, like live concerts (expect music artists to do more of these, as recording sales drop) or sport events.

Related posts:
Will Internet TV Kill IPTV?

How will Music Industry survive Internet?

The Music Industry can not keep fighting to preserve their status quo. Internet, mp3 and iPods have changed the way we ingest music. DVD/CDs are doomed to disappear. The music and film industry will need to adapt to survive.

A wonderful extensive article has been published by Wired: David Byrne’s Survival Strategies for Emerging Artists — and Megastars. This is the best informed article I have recently read on this topic.

This chart from the article shows the trend for the Music Industry both in size and in formats.

With the costs of recording, manufacturing and distribution going down to almost zero thanks to Internet and new technologies, the role of the music labels becomes very thin, and many will disappear. At the same time, live performances are not part of promotion any more, but a business in itself generating revenues for artists. Similar to the music model before the 20th century, where artist made money mainly with performances. Only that today there is merchandising, advertisement rights, and publishing royalties (for adding the song to an ad or a movie) to add to the money inflow of artists.

Internet help artists to have their works popular to a wider audience. Artists have only to adapt to the new business models. Labels will need some painful restructuring, just as other industries had before.

Net Neutrality debate renewed

In US these days there has been a lot of renewed debate on Net Neutrality. See video below from Sen. Ted Kennedy for those not familiar with the issue

The fact that Comcast was throttling BitTorrent P2P traffic, triggered the debate whether Net Neutrality regulations would force the Service Provider not to slow down P2P traffic.Comcast argues, that even with Net neutrality laws, the only thing Comcast was doing was reasonable Network management.

“Comcast does not, has not, and will not block any Web sites or online applications, including peer-to-peer services, and no one has demonstrated otherwise,” spokeswoman Sena Fitzmaurice told CNET News.com. “We engage in reasonable network management to provide all of our customers with a good Internet experience, and we do so consistently with FCC policy.”

Should the Congress approve Net neutrality regulations, even if somehow those are interventionist on private sector business?

Wouldn’t these issues be better fixed by Market laws? The Government should just guarantee competition exists. e.g. users would move from Comcast to other Service Provider that does not throttle their traffic. As long as there is enough competition the open free Internet would survive, wouldn’t it?

I tend to agree with liberal thesis in favor of free market, but a la European, i.e. with exceptions in some areas where the System must intervene to secure equal opportunity for all: Justice, Health, Education, public infrastructures and, why not, Internet.

Internet is a cornerstone of our current society. Governments should take care of it.

Go for Net Neutrality, even if it upsets Service Providers.