Future of IPTV

So whats with the current boom in IPTV?

IPTV is not an entirely new concept today, the first media stream over Internet was introduced by ABC World News way back in 1994.

There are many reasons why IPTV service is gaining momentum in recent years. As consumers are getting more media savvy, traditional broadcasts no longer appeals to them. There is no need for one to rush home just to catch the start of a show. They can easily stream or watch the program in their own time online. In fact, I have friends who do not have a television at home!

Despite the lure of content on-demand using the Internet, we cannot take away the fact that the goggle box is still the favorite past time that engages the whole family at the same time. There are still intangible benefits the TV has built up for almost 100 years that we cannot take away. Therefore, to attract the crowd back in front of traditional TV, operators have to evolve the way TV contents are delivered. The whole point is to get people interested in watching TV again.

Internet

Without a doubt, the Internet has changed billions, of lives since it came online in the last decade and a half. The world seems to have gotten smaller overnight. TCP/IP has become the most efficient way of delivering information anywhere in the world. Every time a user hooks up to the Net, he is identifiable by an IP address. Therein lies the way for IPTV operators to get closer to their subscribers. Personal profiles can be recorded and targeted contents can be recommended to the users. This is a more valuable monetization of the users than traditional broadcasting. The latter focuses on "golden" periods to earn higher advertising income whereas, with IPTV, the "golden" period is 24 hours a day. Knowing what your consumer wants is better than thinking what he might want.

H264/MPEG-4 AVC

The H264/MPEG-4 Advance Video Coding has to be one of the drivers for IPTV technology. This video compression method is 50% more efficient than its predecessor MPEG-2. It is widely used in Blu-ray, teleconferencing and high definition broadcasts. So why is this coding method used to compress video formats and how it relates to IPTV? Think this way, if the pipe can transmit 3mbps but only 1.5mbps is used for video transmission, can we do more with the other half? Sure we can! It is where we can transmit data to users and enhance the whole IPTV experience with services and applications.

Digital Living Network Alliance (DLNA)

The advancement in DLNA standards has contributed significantly to home electronic devices. Nowadays, most electrical equipments such as LCD TVs, DVR players and even mobile phones come equipped with DLNA-enabled stickers. With DLNA, the devices are able to effectively talk to each other and exchange contents seamlessly. The new generation of IPTV set-top boxes are DLNA-ready. It allows the existing TV sets to display media stored in other independent devices such as laptops, mobile phones and Network Attached Storage or NAS.

Future of IPTV and its challenges

The rise of the Internet has brought with it a new taxonomy of navigating within a content rich world. If you are interested in a particular word or concept, it is just a hyperlink away to getting your answer. It is that easy to consume contents over the Net.

However, IPTV is mainly delivered via set top boxes which are inherently lacking in data processing and graphics display. IPTV cannot compete with directly with WebTV due to limitations in the performance of set top box vis-a-vis the PC. It is a different ball game to offering TV online. Users should not be bogged down by too many clicks of the remote control to get what they want. User interface and controls play a critical role in determining if users will consume the various services available. Success can still be achieved if the user experience is managed right.

Services and applications available in IPTV should not be too similar to what one gets online or through mobile App Store. We have to consider the usual crowd who will gather around the TV. I will throw more ideas on the possible services offered through IPTV in another post.

Tech Giants also want a piece of the Pie

Operators who are launching or have launched IPTV services will have their work cut out for them with tech giants Google and Yahoo's Widget TV coming into the fold. Recently, Google teamed up with Sony and Intel to develop Google TV. Now, it doesn't take a lot for one to realize this is a triple power play at work. We have the leading Processor people in Intel, the omnipresent Technology platform in Google and the time tested TV Manufacturer Sony. Just when the operators are breaking out of their dumb pipe business model, the IT industry is pushing them back in.

Whatever it is, the rapid development within the nascent IPTV industry holds much promises for suppliers and consumers. The competition is still open and the holy grail of IPTV, as yet unknown, will only become clearer as more services are being launched. One thing is for sure, watching TV will never be the same again...sorry for the cliche :)

Feel free to contribute your thoughts on IPTV Now and the Future.