IPTV: The telco catch-22?
By Michael Dargue, Bob House and Ed Naef
Apr 2, 2008 6:26 PM
IPTV is finally coming of age. Major telcos in the United States and overseas have launched their services and now compete with cable and satellite operators in the pay-TV market. In the broader market of content delivery, consumers have even more choice, as online players and consumer electronics giants enter the game.
The big question is: Who will triumph in this battle for domination of the living room? In an increasingly competitive market, will IPTV ever be profitable for telcos, or is it actually a catch-22 — can't survive without it, can't make money from it?
Looking back to when IPTV was first espoused, today's competitive landscape is different from that envisaged. Facing declining revenues in their core business, telcos saw IPTV as a unique opportunity to leverage investment in broadband and deliver a new generation of entertainment services. However, since then, cable operators have developed their own comprehensive on-demand services, removing a key anticipated differentiator. Telcos must now work harder than ever to make a success of their IPTV investments.
