Can Video On Demand Save IPTV? VoD Economics, Global Forecasts, and the Case for IPTV VoD

Internet Protocol television (IPTV) is rapidly emerging as a new TV platform. Delivered over broadband, it promises to reenergize the telco business model and disrupt the traditional TV business. The technology leverages the flexibility and scalability of IP to transform the television experience by providing access to more content—content that is superior in quality and can be more personalized and interactive than traditional broadcast TV. Within this context, video on demand (VoD), by enabling further service differentiation, is becoming a key component of the IPTV proposition.

IPTV and VoD services are as uncertain as they are tantalizing, however. The TV business is complex and largely new territory for telcos; the jury is still out on the commercial viability of IPTV and VoD services.

Pyramid Research’s new report—Can Video on Demand Save IPTV? VoD Economics, Global Forecasts, and the Case for IPTV VoD—takes a long, hard look at the VoD business model for IPTV operators, analyzing its value proposition, investment requirements, content dynamics, and overall market opportunity to assess whether telcos should take on the challenge or make do with pay-TV alone.

In Section 1, Pyramid Research reviews the global evolution of VoD services, platforms, and deployment economics. Section 2 includes an analysis of the new telco business model and the VoD value proposition for IPTV players. In Section 3, Pyramid Research examines the IPTV VoD business models of today and how and why they will change over time. VoD thrives on compelling content, but IPTV operators are quickly finding out that content acquisition is more time-consuming and expensive than envisioned. Section 4 delves into VoD content dynamics, providing insights into successful VoD content strategies and best practices from the perspectives of IPTV operators and content providers. Finally, in Section 5, Pyramid Research projects VoD transactions and revenues over IPTV networks, by region. Included in this report are also four case studies of operators that provide VoD services:

• France Telecom, France
• PCCW, Hong Kong
• Time Warner Cable, USA
• Verizon Communications, USA

Key Objectives

• Can VoD save IPTV?
• How will the VoD business model evolve on IPTV platforms?
• Which IPTV VoD packaging strategy will come out on top?
• What type of content is necessary to make VoD work?
• How much does IPTV VoD cost?
• What is the IPTV VoD opportunity?