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The triple-play battle in North America
At the end of 2005, the top ten cable MSOs (Multiple Systems
Operators) in the US had over 24 million broadband Internet
customers and just over 5 million telephone subscribers [4]. It
is generally acknowledged that for many telcos, the introduction
of video is a defensive strategy designed to 'lock-in' voice and
data customers, since triple-play bundling reduces churn. But
first telcos must convince consumers to switch video providers -
and the big question is how they can do it. [4] The Companies
and Leichtman Research Group Inc., from Leichtman Research
Group's Q1 2006 'Research Notes' picture_rotation.gif
Can IPTV hurt cable with video - and how?
IPTV is on course to become a credible Pay TV platform in North
America and while nobody expects AT&T or Verizon Communications
to overhaul the cable or satellite industry with their broadcast
TV and VOD offers, IPTV is achieving good penetration in markets
where it has deployed. In January, Verizon was claiming 21 per
cent video penetration for Keller, Texas, just four months after
the service was launched (Verizon's debut for FiOS TV).
In Canada, Manitoba Telecom Services, the country's third
largest telephone carrier, has achieved 20 per cent penetration
(50,000 subscribers) in Winnepeg, where services have been
available since 2002. And SaskTel, which has been offering
multi-channel TV and VOD in the Canadian province of
Sasketchewan since late 2002, was reporting average penetration
of 19 per cent in mid-2005 for the cities it serves. Tellingly,
SaskTel claims that six out of every ten new TV installations
also represents a completely new broadband customer. [1]
Thanks primarily to AT&T and Verizon, North America is expected
to account for a large proportion of the world's new IPTV
subscriptions during the next few years. They join the
significant number of regional and local telecoms operators in
North America who pioneered this new digital TV platform but the
big question is whether any company bringing Pay TV to market
this late - even those with the resources of AT&T - can gain
significant market share on a national basis.
North American IPTV service providers face a tougher test than
their European counterparts, who have benefited from a natural
watershed in the Pay TV marketplace thanks to the introduction
of DVR (Digital Video Recorder), true VOD and Replay TV (mainly
2005 onwards) and HDTV (late 2005 onwards). In the US, VOD is an
established cable offering and HDTV is available widely on cable
and satellite. Cable operators have also pursued an increasingly
aggressive triple-play strategy (they now have 24 million
broadband Internet customers and 5 million telephone customers
[2]) and this makes it even harder to tempt customers from their
legacy suppliers.
So where are North American IPTV providers going to find their
subscribers and what services must they provide (and evolve) in
order to differentiate themselves in the crowded Pay TV
marketplace?
These are some of the themes that will be addressed at the IPTV
World Forum North America conference and exhibition, which will
draw together leading IPTV service providers, content providers,
analysts and key technology vendors for what we believe will
become one of the key events in the North American IPTV
calendar.
IPTV World Forum – North America IPTV World Forum
North America is part of the IPTV World Series of events
organised by Informa Telecoms & Media globally. We have already
developed the market-leading IPTV event for Europe (IPTV World
Forum in London, entering its third year) and the highly
regarded IPTV World Forum Asia (held in Shanghai and about to
enter its second year). IPTV World Forum Eastern Europe complete
the series and we will be drawing upon our experience and
extensive contacts in the global IPTV and content communities to
deliver a market-leading conference for North America.
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