IPTV-The Future of Television

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					 VINOD GUPTA SCHOOL OF MANAGEMENT,IIT KHARAGPUR




IPTV –The Future of
           Television



         COURSE: Management Information System

            INSTRUCTOR: Prithwis Mukherjee




                           BY

               Vijaya Prabhu [ 10BM60097 ]

                        11/7/2010
                                                                                                                                           IPTV


                                                      TABLE of INDEX
1    ABSTRACT ................................................................................................................................ 3
2    INTRODUCTION ........................................................................................................................ 3
3    SNAPSHOT OF CURRENT SCENARIO OF IPTV ...................................................................... 4
    3.2     Video on Demand .............................................................................................................. 4

    3.3     Time Shifted Programming ................................................................................................. 5

    3.4     Live Television ................................................................................................................... 6

    3.5     Broadband Internet............................................................................................................. 6

    3.6     Landline Telephone ............................................................................................................ 6

4    ECONOMIC DETAILS OF IPTV .................................................................................................. 6
    4.1     IPTV Revenue .................................................................................................................... 7

    4.2     IPTV Costs ......................................................................................................................... 7

5    MAJOR CURRENT PLAYERS OF IPTV in INDIA ....................................................................... 8
    5.1     BSNL ................................................................................................................................. 8

    5.2     MTNL ................................................................................................................................. 8

    5.3     Bharti-Airtel ........................................................................................................................ 8

    5.4     Reliance............................................................................................................................. 8

6    CHALLENGES TO OVERCOME ................................................................................................ 9
    6.1     Implementation Challenges ................................................................................................ 9

    6.2     Deployment Challenges ..................................................................................................... 9

    6.3     Threat of Substitutes .......................................................................................................... 9

7    IPTV – “IN THE FUTURE” ........................................................................................................ 10
    7.1     IM buddy list and Real Time chat ...................................................................................... 10

    7.2     Live Polls ......................................................................................................................... 10

    7.3     Education ......................................................................................................................... 11

    7.4     Theatre/concert Tickets .................................................................................................... 11

    7.5     Share home videos .......................................................................................................... 11

    7.6     Stock Trading Online ........................................................................................................ 11

    7.7     Traffic and Weather reports .............................................................................................. 11

    7.8     Hospitality services........................................................................................................... 12

    7.9     Corporate ......................................................................................................................... 12

8    CONCLUSION ......................................................................................................................... 12
9    REFERENCES ......................................................................................................................... 13

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                                                                                                    IPTV




1    ABSTRACT


Normal Television will no longer be a medium for broadcasting the information. It makes no sense in
broadcasting the information that most of the people do not want to look into. It’s become more
relevant to give information what customer needs, and it changes for each and every customer. This
leads to the future of television – “IPTV”. With IPTV we can watch our favourite programs we like at
our leisure time with/without any advertisements..Movie on Demand was a hit among the IPTVs .You
can do almost anything that you can do on laptop/mobile in IPTV. It can be used for Online Trading,
Online shopping, in schools and also in hospitals. It is basically paradigm shift in television from being
PUSH medium to the PULL medium




2 INTRODUCTION
IPTV is the acronym of “Internet Protocol Television”. IPTV concept was started in 1995. IPTV is
much more advancedd compared to Internet Television, where it can be viewed only on Computer
.IPTV uses the Internet Protocol suite to provide multiple services for the customer .Some of the
commonly provided services include Broadband, Landline Telephone and Television Services.




IPTV uses the IP based networks to provide high level of Quality, Interactivity and Reliability. Here the
users are expected to buy a Set Top Box machine to decrypt the IP signal and to watch it in a
Television. IPTV assures customer for high level of Quality of Experience (QoE) and Quality of
Service (QoS) compared to Cable televisions and other substitutes. IPTV can provide good clarity of
videos and multiple services offered by the service provider gives an edge to IPTV.


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                                                                                              IPTV

Currently IPTV is not used to the fullest due to many legal and technological challenges .The IPTV
can be used very interactively with customers beyond Video on Demand and Pause and Replay
Television .Each and every IPTV will be given a separate IP address it is bound to be under the
control of local Service provider .IPTV has a great economic potential in the areas of Gaming,
Networking and mainly in rating the programs instantly.




3       SNAPSHOT OF CURRENT SCENARIO OF IPTV
IPTVs are currently being used in 5 main ways they are.

             Video on Demand
             Time Shifted Programming
             Live Television
             Broadband Internet
             Landline Telephone

The main reason why there are only 3 predominant services being used is due to the limitation in the
bandwidth.


    3.1      Video on Demand

Video on Demand is one of the popular services offered by IPTV .Here in this service a set of videos
are stored in a Server known as Video-On-Demand Server.The videos stored ranges from movies to
education.




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                                                                                                 IPTV

It will contain a huge movie database, a selected Lectures which is most popular and Training and
references from popular scientists and professionals. One more advantage of this service is we can
Record the live television simultaneously while watching the video we demanded. The service charge
varies for different types of video offered.




Here the videos are stored in a particular server and on demand from a particular customer or a
particular IP, the video will be encrypted and distributed to the requested IP address.




    3.2       Time Shifted Programming

This type of service is offered to watch a live telecast later at a leisure time. This service helps to
“PAUSE” the live TV broadcast and viewing it from where we have paused. In this service the Data is
stored in the backend and is relayed back once the customer presses the PLAY button. This is one of
the exclusive service which cannot be done in the traditional cable connection.

Also, we can program the Set top box to save a particular program and we can view it at our
convenience. This is different to Video on Demand, here we can customize what program to record
but in VoD , we can view only the video saved in the server.




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                                                                                                    IPTV


    3.3       Live Television

This is one of the basic features of television. Here the clarity of the picture is very high compared to
the cable television. Since, the number of packets transferred per second in very high .The Quality of
Service and Quality of Experience is also very high as it uses the PULL medium.

In IPTV when we request a live channel to be displayed in our TV, first the request is sent to the
service provider via IP then the privilege of the IP address is checked .If the user has subscribed for
that channel then it will be displayed to the customer via IP . Paid channels like HBO cannot be
viewed by all the subscribers, only the customers who has paid for that channel can only view it.




    3.4      Broadband Internet

Broadband internet feature comes along with the IPTV. In India, the Broadband bandwidth has been
increased slowly from 256 kilobytes per second to 10 Megabytes per second. One connection from
the service provider will give access to the internet and also to the IPTV. Using one service will not
deter the other.




    3.5      Landline Telephone

Landline telephone plays a vital role in every household. It acts as an permanent number for the
family. Since, it comes along with IPTV connection, One can watch the IPTV and can easily identify
who is calling to the landline number .

The Current status of the usage of IPTV is very much limited compared to the actual potential of the
IPTV. Now let us look more about the hurdles faced ,major players and the economic potential of
IPTV




4 ECONOMIC DETAILS OF IPTV
IPTV is one of the emerging technologies in media. First It was Black and white Television and then
the colour television took over the initial lead. Then it was dry run in the field of mass media, where
cable broadcasters dominated the media. Then comes the IPTV with lots of innovation. In India IPTV
subscription is expected to reach 1 million by 2011. IPTV is the one where there is a lot of scope for
improvement in the near future, so we can expect the number of users using this service skyrocket in
the next few years.

Some of the revenues and costs involved in IPTV are given below


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                                                                                                     IPTV




    4.1       IPTV Revenue

      4.1.1    Subscription

Subscription charges are the main source of revenue for the IPTV service providers. Usually it will be
paid monthly or quarterly. Once a customer subscribes for a channel or a value added service ,he/she
will be subscribed for the rest of the future until the customer unsubscribe from the service.

      4.1.2    Advertisements

Advertisement is one of the key features of IPTV. Here the advertisers can segment the customer and
will advertise to a particular segment of customers based the data they got from the service providers.
Customers also can easily provide feedback and comment about the product almost instantly

      4.1.3    Video On Demand

It is a value added service offered by the service provider, so that the customer can watch their
favourite program, Movie or any other video at their leisure time

      4.1.4    Television Commerce

This is a type of tele-shopping, where the customers can interactively provide order for the product
they see on television. This is still in its initial phase and improvements are being made in this types of
revenue sources

      4.1.5    Time Shift Programming

This value added service is like storing a particular program using set top box and viewing it at some
other time.


    4.2       IPTV Costs

      4.2.1    License

License cost are the cost paid by the service provider .It will be based on the number of subscribers
and the license will be allotted for the media or network covered by the particular service provider. It
ranges from from 35 to 50 percent of the revenue from the customers

      4.2.2    Operations Cost

Operation cost are the costs involved in setting up, maintaining and administering the service. Since
the technology is new, currently the costs are too high which will eventually come down over a period
of time. Initial setting costs cover the major junk of cost.



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                                                                                                    IPTV

      4.2.3   Data Transfer Cost

It is the fees paid for the amount of data transferred over the medium. It is basically calculated for
Internet broadband connection. It is related to the amount of data the user uses within a month. It
usually costs around Rs.500 for 1 Gigabyte of data.




5 MAJOR CURRENT PLAYERS OF IPTV in INDIA
The key players of IPTV in India include BSNL, MTNL, Bhart-Airtel and Reliance . Currently the state
owned players are doing a huge amount of advertising on IPTV and o once the private players
pitched the competition will be high and the level of innovation will also increase.


    5.1       BSNL

Bharat Sanchar Nigam Limited (BSNL) is the leading provider of IPTV in INDIA. It offers IPTV
services to around 50 cities in India. It covers all the metropolitan cities and also some smaller cities
like Thiruvananthapuram are also covered. BSNL offers triple play services featuring TV, Broadband
Internet and Telephone.


    5.2       MTNL

Mahanagar Sanchar Telecom Limited (MTNL) is the one of the pioneer of IPTV in India. IPTV was
started by MTNL in 2 big cities, Mumbai and Delhi. They had the triple play service and it was offered
from 2006. The triple play services include Broadband Internet connection, Landline connection and
IPTV service. MTNL is the one which Video on Demand initially using IPTV service.


    5.3       Bharti-Airtel

Bharti –Airtel is one of the leading telecom providers in India. It started its IPTV to the customers of
NCR (Delhi, Gurgoan and Noida) .It also had a triple play service. Bharti- Airtel started with the Time
Shift TV service and Interactive 2.0.IBM provided non mobile related services for Bharti-Airtel


    5.4       Reliance

Reliance IPTV was one of the strong contenders in IPTV as far as Value added services are
concerned. They started off with their IPTV service in the parts of Mumbai .They offered a variety of
value added service along with the tripe play service ,which includes Real-Time Video on Demand,
Audio Language Choice for live channels, Subtitling and high Definition relay of programs. Reliance
has a partnership with Microsoft to meet demand of IPTV service.

The above mentioned were the key players in the Industry. There are a number of small players who
are offering the triple play service and with similar value added service.

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                                                                                                    IPTV


6 CHALLENGES TO OVERCOME
IPTV service being one of the latest technologies in the field of communication, It will have its share of
Challenges and Barriers to overcome to meet the target audience effectively. Below listed are some
of the major challenges faced by the IPTV service




    6.1      Implementation Challenges

Delivering High quality video with the available infrastructure seems to be a bigger challenge for the
IPTV. This challenges the robustness and scalability of IPTV .The choice of the infrastructure items
like Middle ware server, Video server architectures plays a major role in effectively implementing the
IPTV service. The Bandwidth requirements, the availability and the interoperability of the enabling
technology products are the key challenges to effectively provide the IPTV service. The revenue
model of IPTV also faces a challenge compare to the DTH or Internet TV service .IPTV is still based
on subscription based service.




    6.2      Deployment Challenges

Deployment challenges include the limitation of the bandwidth size. In India we also face a lot of
network issues like bandwidth drop off, where the quality of the service gets distorted. The installation
cost is very high and so there will be a constant extension in the IPTV lines provided .The post
installation support also plays a major role, where in India an average customer is spending around
18 minutes in the customer support call, which further increases the cost .




    6.3      Threat of Substitutes

Question of substitutes always acts as a big challenge for IPTV. The threats from substitutes like
Cable television, Direct to home, Internet television where the providers gives similar features to the
customer posing a big threat to IPTV.




                                        DTH Vs IPTV

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                                                                                                     IPTV




IPTV has a disadvantage of using the physical broadband connection for its triple play service, so it is
difficult for IPTV to reach remote villages and in country like India it will take number of years to reach
the major TV users.




7 IPTV – “IN THE FUTURE”


IPTVs Unique selling Proposition is the interactivity that it offers to the customer.The main drawback
of current IPTV is that it is wired and we nned a physical broadband conection to use the IPTV
service.In the future there will be a ‘quaduple play’ service where the connection will be wireless and it
can reach nook and corner of a vast country like India. Now lets look at some of the IPTV services
which is possible in the future. These IPTV services will put IPTV in the predominant position an
experts suggests the IPTV subscription will increase to 4 million users by 2015.The launcof the latest
technologies like wimax and 3G will bring a great change in IPTV usage.




    7.1      IM buddy list and Real Time chat

Instant Messenger buddy list on IPTV will be a added service. TV will no longer be used only for
watching pre-recorded video. We can chat with our friends while watching TV. Thanks to the
interactivity offered by the IPTV, we can actually use a Instant Messenger in IPTV and chat with your
best friends while watching TV. We can see how many of our friends are online and we can chat with
them in IPTV ,just like what we do in computer but while watching your favourite program in IPTV




    7.2      Live Polls

Live Polls can be conducted easily in IPTV. Since each and every IPTV connection has a specific IP
address each and every subscription can be easily distinguished. We can instantly give feedback to a
particular program and thereby enhancing the quality of video offered by the service providers. This
type of Polls can be used in game show also, we can participate in a game show like “Kaun Banega
Crorepati” by staying home using IPTV.




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                                                                                                    IPTV


    7.3       Education

The Video on Demand option can be used effectively in Education sector .There is a lot of scope of
improvement by providing online lectures based on request. Once this is established we can see a
dramatic change in the way teaching is done. Educational institutions can upload lectures to the
server and can use the existing lectures in the server. In the future quiz can also be conducted using
the IPTV service. Since it is two way communications, we can also get the doubt clarified while the
lecture is going on. Education sector will dramatically improve on the advent of wireless IPTV.




    7.4       Theatre/concert Tickets

Tickets are already available online. We can take a step further using IPTV and we can actually book
tickets for a particular movie or concert while watching its teaser online. We can actually pay the ticket
price online using credit card .There is no need for keyboards to enter data, we can actually enter
credit details using Remote control, yes the remote control which we use to change channels.




    7.5       Share home videos

We can actually use the IPTV server provided by the service providers as a storage space and we
can publish the video on IPTV server. So that it will be available in IPTV library and can be accessed
by anyone who has the IPTV subscription. We can share home videos with pour friends and
neighbours and no need to use the laptop for uploading and sharing the videos in the future.




    7.6       Stock Trading Online

This will be one of the important innovation in the future. Most of the top stock broking companies are
working on bring the stock trading portal in IPTV. It will be a breakthrough in IPTV. We can actually
watch business news in IPTV and we can buy or sell shares of the company we are watching in IPTV.




    7.7       Traffic and Weather reports

We can actually get live updates on the weather and traffic in your location in IPTV. This can be
incorporated by availing the value added service package .It will provide the weather report and
Traffic update based on your locality in IPTV. It will make life easier and we can take the less crowded
route to attain the destination without any traffic.



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                                                                                                     IPTV




    7.8      Hospitality services

    IPTV will be used effectively in hospitality sector. IPTV service can also be used as a Out-Of-
home video by actually displaying the advertisements of a particular hospitality industry. In a resort we
can display the video of that particular location, so that the tourist will be delighted on seeing the video
in IPTV without going to each and every place owing to time constraint. In hospitals we can display
spiritual and encouraging video to soothe the patients in the hospital




    7.9      Corporate

    Corporate will make the most of IPTVs innovation in the future. They can provide the training and
tutorial in IPTV and they can also use to reinforce their mission, vision and core values among the
employees. It can be used to announce some important decisions to the employees .IPTV can be
placed inside the office in the recreation room, Canteen and in cafeteria space. This will bring in more
transparency within the organization.




8 CONCLUSION


    Television has emerged from Black and White to Colour television and the next big innovation is
the IPTV. It outsmarts all its substitutes by greater interactivity and with emergence of latest
technologies like 3G and WiMax, IPTV will go wireless and will reach huge number of subscription of
40 million by 2015.

    Currently IPTV was actively pushed only by the state owned players like BSNL and MTNL and in
the future,the competition will increase due to emergence of private players . Even the traditional
cable operators are moving IPTV and started to promote IPTV to the customers .DTH seems to be
one of the formidable substitutes and it can be easily surpassed on inclusion of variety of value added
service by service providers. IPTV will also change the way advertising is done, by targeting
customers based on the type of programs they watch. IPTV with “QUADRUPLE Play” within its sight
will sure to dominate the Indian market with its highly sophisticated value added service.




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                                                                                              IPTV


9        REFERENCES


http://www.slideshare.net/raymondmonaco/the-future-of-iptv-presentation

http://knowledgefaber.com/articles/Media-Education/IPTV-India-article.pdf

http://www.althos.com/tutorial/IPTV-tutorial-Economics.html

http://www.broadbandindiamagazine.com/2010/01/is-it-really-going-to-a-big-success-story-iptv-in-
india/

http://en.wikipedia.org/wiki/IPTV

http://knowledgefaber.com - IPTV in India - Only Luxury?




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