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Changing of the Content Guard: Where's the value and who gains?

Other Article: IPTV Client Browser, MPEG-4 HDTV IPTV, IPTV Reference Design, TVoBB Service

By Chris Coles,
President/CEO
Myrio, A Siemens company
July 18, 2006

Let’s face it, in today’s world we are all running at a pace faster then a generation ago. At the same time, technology has granted us the ability to blend our professional and personal lives. With mobile phones that are more like mini PCs, to Wi-Fi enabled laptops, we can work anywhere at anytime. This is why the Digital Home is becoming our chance to create a personal sanctuary. Picture this:
 
 
It’s Thursday evening and the kids have finally fallen asleep. You make yourself comfortable in front of the television for a little downtime to watch your favorite television show that you scheduled to record via your mobile phone earlier that same day. At the conclusion of this commercial-free show you pull up the school lunch menu on the television to make sure that you don’t have to prepare a bag-lunch for your kids. You notice on-screen that your sister is calling, at the same time your brother shows up on chat session in the lower corner of your television. You converse/type with them about your parent’s upcoming anniversary party. Afterwards, you pull up your work schedule for the next day and review your meetings and a few emails - all via the television - before heading off to bed.

Centrally located, the living room is becoming the center of your entertainment and communication environment. The question remains, however, is Internet Protocol Television, IPTV for short, really the platform to offer all of these advanced services?

What used to be termed ‘Triple play’- the grouping together of Internet access, TV and telephone service into one subscription on a broadband connection -.is now ‘Single play’. Single play is a one-stop shop that provides everything consumers demand to ensure their entertainment and communications needs are met. The goal for service providers is to create the same experience in multiple environments across the 1 ft (mobile phone/PDA/iPOD), 2 ft (PC) and 10 ft (television) mediums.

To be a truly ‘disruptive’ enabling technology, providers must think of the consumer first and the technology second. A good example of this is Apple’s highly successful iPod MP3 player. From a simple, easy to use platform accompanied with a large selection of the most popular music (and now video), books and unique content genres, iPOD has become the de facto widget in helping us stay entertained in a very complex world. More and more iPODs are popping up all around us - at the gym, in cubicles and on the bus. To the user, it is a convenient way to be entertained and unplug from the rest of the world. To Apple, it is a multi-billion dollar stroke of genius.

How can telecommunications and other broadband or broadcast providers strike the same accord as Apple? Simple - stay in tune with the demands of the end-user. While the mainstream public doesn’t know exactly what IPTV or the Digital Home is what they want is easy access to their new on-demand movie player or be able to simply and safely share photos of their teenager’s recent birthday party. The one commodity that all consumers want and are willing to pay for is T-I-M-E [Time-saving, Intuitive, Mobile and Entertaining]. At the end of the day, a service provider can be very successful by offering a compelling, innovative and economical bundle of services that will follow this T-I-M-E paradigm.

To capture and accelerate these innovations, two items must be analyzed.
  1. Realize that the fulcrum of power in the consumer marketplace has shifted from the marketer and retailer to the consumer.
  2. Operators and network owners need to accept this shift in power and capitalize (read this as monetize) by opening into new agreements on who and how their network will give access to subscribers.

Ultimately this means entering into business agreements with not only the top content providers (e.g. Disney, Sony, MGM) but also those content providers that belong to the “Long Tail” spectrum. These are the video podcasts, the online garage bands, blogs (both static & video), thereby giving consumers a way to search effectively and offer suggestions about info-tainment based on their historical usage and purchasing patterns. Additionally, some innovative providers will simply make their own branded content by tapping into those localized sources of content or jumping head-first into creating or partnering with grassroots viral type content channels like heavy.com, Rocketboom, iVillage and Here! - just to name a few.

A new challenge has fallen upon the service providers of the world. Take the ‘technology’ out of your offerings. Make access and use simple intuitive and affordable. Provide interesting and personable content choices. Above all else, make our lives easier. Great concepts take time. Remember, the iPOD had a long runway to fame that all began with the Walkman.

Chris Coles
President/Chief Executive Officer
Myrio Corporation, A Siemens company

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