Special Report IPTV@IBC2009
For many industry observers ‘Over the Top’ (OTT) TV, or Internet video as it is
also termed, poses a greater long term threat to Pay TV than IPTV. Many also
argue that the emergence of traditional IPTV will be challenged by the growth
of OTT TV even before it reaches a critical mass, in much the same way that
Skype caused traditional telecoms providers to cannibalise their voice revenue
Metin Taskinto remain competitive. This article - by , CTO of AirTies, a supplier
of home networking and video solutions - will examine the current status of
OTT TV and the advantages and barriers that remain.
Can OTT TV win the day?
still has some way to go before it canhe concept of OTT video lacks any DRM, sharing of financial gains,
make the leap off the PC and into thespecifically for the younger geo-licensing barriers, and guarantee
living room even though YouTubegeneration is particularly that the content will be delivered at the
already provides some of its content inappealing. For the teenagers expected level of quality. A second
high definition format. Yet the conceptof today, the central tenet of challenge to overcome is the need to
T
of being able to combine Internet TV -being able to access content partner with a service provider, be they
both streamed, live and UGC - withon any device at any time for free is cable, fibre or ADSL, to deliver the last
surfing the web and DTT channels, whilstextremely attractive - and in keeping mile access to the home. This will
chatting to your social network friendswith their expectations from using
Metin Taskin, CTO require careful negotiation, as
of AirTies.
and playing a game; all on a singleYouTube and iPlayer. In broadening the bandwidth availability is key to a
device; has immense appeal to the ‘y’context on a global level and adding that successful OTT deployment. The third
generation who already spend morethe only prerequisite is ownership of a element relates to the installation of the
time on the Internet than watchingbroadband line and a TV, it opens the appropriate equipment in the home, or
traditional TV.scope even further to give us a glimpse the need to make it self-installable by
of the potential for expatriates or the user.
Key barrierstravellers to access content from their
Internet TV However, setting aside these
lounge or hotel room from a provider
services are
challenges - which will undoubtedly be
However, before we get carried awayanywhere in the world. It is even more
predicted to
overcome with time - the possibilities
here, it’s important to note that Internetappealing if you can combine OTT with
grow from
unleashed by offering video, combined
video is still limited in its deployments.DTT (Digital Terrestrial Television) free to with the global pervasiveness of the
$422.7
Today, whilst traditional IPTV operates inair channels to provide a complete Internet, unfettered by walled gardens,
a closed network equipped with DRM, million inservice of live TV with OTT content. No offers a host of new possibilities. The
encryption and QoS, Internet videosmall surprise therefore that statistics
2006 to $5.79
‘long tail’ phenomena of the Internet will
needs to be able to move video fromfrom iSuppli predict that Internet TV
billion in
be available from the TV in your front
the Internet onto the networked device,services will grow from $422.7 million in
2011, and a
room. Not only will this provide our
and the content itself can be located2006 to $5.79 billion in 2011, or that a
recent survey
metropolitan mix of nationalities with
anywhere in the world. Any IPTVrecent survey of 2500 Pay-TV customers access to abundant programmes in their
of 2500 Pay-deployment - whether traditional or OTT
in the US found that 2/3rds of own language, but it will also facilitate a
- needs to satisfy three essentialrespondents wanted to view Internet
TV customers rich variety of programmes tailored to
conditions to succeed: compellingcontent from outside the walled garden
in the US
specific interests at a domestic or
content, financial viability andof Pay TV services.
found that
professional level. No-one will be able
technological feasibility.From the standpoint of telecoms
two thirds of
to complain that there is ‘nothing on the
In the IPTV world the service provideroperators who have already made box of interest’ but the challenge instead
respondents
chooses the mix of technologicalsignificant investment in IPTV will be to navigate through the
elements to offer, including the mix of wanted toinfrastructure in order to compete with proliferation of different content to find
middleware, STB, CA etc., as well assatellite and cable operators, the threat
view
the most interesting.
providing the network infrastructure andof Internet TV is a real one. Analyst
Internet
bandwidth. OTT removes thegroup Heavy Reading confirmed this in a
content from
Advertising matters
proprietary networking elements inrecent report amongst telcos which
outside the
between and replaces it with the publicrevealed significant concerns about its The ability to move from a mass viewing
walledInternet. The key challenges this leaves
impact on next generation Telco IPTV as to a more personalised approach is also
relate to content, accessibility andshown in the diagram below.
garden of
.
at the heart of those services like Joost
6
equipment.Yet the Internet TV revolution is still
Pay TV
2
Sand Bablegum which are predicated on

e
some way off from taking over the
services.
using advertising to pay for the service, g
Content is king
a
P
remote TV control in our living room. in the same way that Spotify has
n
o
YouTube points to the potential interest recently taken the online music market
d
eIn a world where content is indisputably
in Internet video, yet as TV viewers by storm. Whether the service is
u
n
iking, content providers will be loathe to
increasingly expect high definition completely ad-funded or not, the
t
n
provide their content in a scenario that oviewing; User Generated Content (UGC) attraction for brand owners is evident
C
www.ibeweb.com l OFFICIAL GUIDE TO IPTV@IBC2009 september/october 2009 l ibe l S25
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