IPTV’s Silent Software Instigators
There is a general consensus among industry analysts and executives that IPTV will have an impact on the satellite sector. The real question is, what kind of impact will it be? The major software companies will, once again, play a role in the development of IPTV. Microsoft has been particularly determined to make an impact in this sector, and already works with a number of the world’s biggest telcos here. "IPTV had been a success story for several telcos, while others are struggling," says John Krzywicki, a partner at Analysys Mason’s U.S. Strategy Practice. Kryzwicki says there are a number of compelling reasons for telcos to launch IPTV services. "IPTV opens up new revenue streams. It allows recovery of investments in a next-generation network. It enables multiplay bundling and increases customer stickiness as a result. It also protects telcos against the stiff competition of cable operators in the broadband market."
Steve Reinhardt, a senior applications engineer for satellite distribution systems at Motorola, agrees. "Many of the new IPTV operators launching MPEG-4 set-top boxes will have a competitive advantage over satellite."
But it is Ian Tapp, senior vice president of business development for Tandberg Television Americas, who highlights the most dangerous aspect of IPTV services to satellite providers, where major software companies have invested heavily. "IPTV is able to blend entertainment and communications, social networking and web media on the TV, and making the TV service more personalized," he says. This type of threat to satellite was identified months ago by Rago, who noted that IPTV’s interactive advertising and programming features will seem to speak directly to customers and reflect the television habits of the viewer — much like one of the most popular Internet browsers, Google.
In May 2008, Rago issued a report, "IPTV Acceleration Puts Satellite in a Corner," that cited figures emphasizing the effectiveness of interactivity in advertisement and programming and related that to the success of modern Internet search engines like Google. The first software giant to acknowledge the success of Google’s format was Microsoft, which had just unveiled its own IPTV platform, the Microsoft Mediaroom Advertising Platform. "As the IPTV market matures, we are seeing interest from operators on first-generation platforms and homegrown solutions to migrate to Microsoft Mediaroom," says Ben Huang, director of product management for Microsoft Mediaroom. "These service providers need to add high-definition and advanced digital video recording and video-on-demand features that are now fundamental to any competitive TV offering, and they want to remain competitive by being able to easily deploy advanced interactive applications. We are currently engaged in assessing migration opportunities with a number of customers and have been approached by many more. Platform migrations are complex, so this program has been developed to assist with business and technical planning, and reduce the cost and pain of migration."
"Microsoft is looking ahead," says Rago. "They are targeting the video-game generation. These are kids that grew up with interactive video games and comprehensive Internet multimedia."
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