The Battle for Broadband TV: TelcoTV vs. Internet TV

SUMMARY

The entertainment market is changing with a shift from theatrical presentation and DVD rental and purchase to on demand and on line content delivery. The battle between the on demand providers is becoming quite intense. This report contrasts and compares TelcoTV and Internet TV and identifies where they compete and how they will cooperate. The battleground for these two services will be over which controls the TV in the home. They each have fundamental strengths and weaknesses identified in this report that will determine the outcome.

In particular, this report addresses:

• Telco strategies for making their broadband network video capable.
• TelcoTV service strategies.
• How Internet TV services will affect TelcoTV services, that is, how Internet TV service will pull the audience away from TelcoTV.
• How TelcoTV providers should use Internet TV content to improve their services.
• Which Internet TV service providers have the best content that for TelcoTV services.
• What the Internet TV providers need from the telcos to expand their markets.
• How the telcos can make money from their TelcoTV services, by region.
• Global market forecasts along with forecasts for Europe, Asia Pacific, North America, and the Rest of the World.
• 13 forecast charts in the report along with 17 more in an Excel spreadsheet annex.
• IPTV subscriber forecasts.
• Broadband subscriber forecasts
• Forecast of viewing hours per month for TelcoTV services and Internet TV services.
• Forecast of film revenues for theater attendance, DVD rentals and sales, cable and TelcoTV video on demand, and Internet TV and downloads.
• Strategies that TelcoTV and Internet TV providers can each use to win in this market.

This report identifies the fundamental strategic advantages that the TelcoTV and Internet TV providers have. It describes how these advantages will translate into unique market stratification. In particular, this report describes how the TelcoTV providers control this market in fundamental ways and limit the ability of the Internet TV companies to reach their users.

The report also provides strategies that the Internet TV providers can use to get around the limitations to their services due to the capacity of the broadband Internet services that the telcos provide. It describes ways of living within these constraints as well as ways of removing them.

Who Should Buy This Report?

• TelcoTV Providers
• Internet TV Providers
• Systems manufacturers
• Company executives
• Marketing managers
• Product managers
• Network planners
• Engineering managers
• Venture capitalists
• Investors

TABLE OF CONTENTS

1. Executive Summary

• 1.1Introduction
• 1.2TelcoTV Strategies
• 1.3Internet TV Strategies
• 1.4Integrating TelcoTV and Internet TV
• 1.5Business Case Scenarios
• 1.6Forecasts
• 1.7Winning the Battle for Broadband TV

2. TelcoTV Strategies

• 2.1TelcoTV Service Strategies
• 2.2Access Technologies
• 2.3Data Services
• 2.4Basic TV Services
• 2.5Premium TV Services
• 2.6On Demand Services

3. Internet TV Strategies

• 3.1TV-Based Internet TV Services
• 3.2PC Based Commercial Internet TV Services
• 3.3PC Based User Generated Internet TV Services

4. Integrating TelcoTV and Internet TV

• 4.1Enhancing TelcoTV Services
• 4.2Enhancing Internet TV Services

5. Business Case Scenarios

• 5.1Broadband Technologies
• 5.2TelcoTV Business Case for North America
• 5.3TelcoTV Business Case for Europe
• 5.4TelcoTV Business Case for Asia
• 5.5Conclusions from the Business Case

6. Market Forecast

• 6.1Forecast Methodology
• 6.2Global Forecast
• 6.3Europe
• 6.4Asia/Pacific
• 6.5North America
• 6.6Rest of the World

7. Winning the Battle for Broadband TV

• 7.1TelcoTV Strategies
• 7.2Internet TV Strategies

8. Appendix I: Companies in this Report

9. Appendix II: Glossary

Table of Figures

• Figure 1-1: TelcoTV vs Internet TV Viewing Hours per Month Globally
• Figure 3-1: Neo Index TV Service
• Figure 3-2: Neo Index PC Based Service
• Figure 5-1: North American Returns from Broadband Services
• Figure 5-2: European Returns from Broadband Services
• Figure 5-3: Asian Returns from Broadband Services
• Figure 6-1: Global TelcoTV Subscribers
• Figure 6-2: Global Broadband Forecast
• Figure 6-3: TelcoTV vs Internet TV Viewing Hours per Month Globally
• Figure 6-4: Total Global Film Revenue Forecast
• Figure 6-5: Yearly Increase/Decrease of Film Revenue Globally
• Figure 6-6: Telco vs. Internet TV Revenue in Europe
• Figure 6-7: Yearly Increase in Film Revenue in Europe
• Figure 6-8: Telco vs. Internet TV Revenue in Asia
• Figure 6-9: Yearly Increase in Film Revenue in Asia/Pacific
• Figure 6-10: Telco vs. Internet TV Revenue in North America
• Figure 6-11: Yearly Increase in Film Revenue in North America
• Figure 6-12: Telco vs. Internet TV Revenue in the Rest of the World
• Figure 6-13: Yearly Increase in Film Revenue in the Rest of the World

Table of Tables

• Table 2-1: TelcoTV Service Strategies
• Table 2-2: Access Technology Characteristics
• Table 3-1: Internet TV Providers
• Table 3-2: Akimbo's Leading Cable Networks
• Table 3-3: Akimbo's Leading Internet Providers
• Table 3-4: KyLinTV Packages
• Table 3-5: MovieBeam Movie Fees
• Table 3-6: Download Service Content Sources
• Table 6-1: Average Hours per Month Watching TelcoTV Services
• Table 6-2: Average Hours per Month Watching Internet TV Services
• Table 8-1: Companies Consulted for this Report