The telcos were the first cabs off the rank once they began to understand what they could do with the internet. However, they then became entangled in their vertically-integrated business models, trying to be all things to all people.
The other problem has been that all players launched their own proprietary systems and tried to negotiate their own exclusive content deals with movie and sport providers.
Independent content providers were not provided with an economically viable business offering by the telcos, who preferred to enter this new market on their own, through portal and ‘walled garden’ offerings. This forced the new players to develop the market independently, with Over-The-Top and apps solutions, thus bypassing the telcos as much as possible.
The clear winner has been YouTube, but other specialised video entertainment companies, including the broadcasters, have also performed significantly better in the video entertainment market.
With more widespread ADSL2+ broadband available, the prospect of new business models on the NBN and a new look at Triple Play models is putting IPTV back on the agenda again in 2013.
A re-launch of the Telstra T-box, the arrival of FetchTV and new plans from Quickflix and Netflix will lead the revival of this market.
Apps for IPTV, VoD, video-on-demand, video podcast, online video, DVD, Mobile TV, online streaming, Quickflix company turmoil sees a restructure.