1.Understanding IPTV
IPTV, or Internet Protocol Television, is growing in significance within the media industry. In stark contrast to traditional cable and satellite TV services that use pricey and largely exclusive broadcasting technologies, IPTV is delivered over broadband networks by using the same Internet Protocol (IP) that powers millions of PCs on the modern Internet. The concept that the same shift towards on-demand services lies ahead for the multiscreen world of TV viewing has already captured the interest of various interested parties in the technology convergence and future potential.
Audiences have now embraced watching TV programs and other video content in varied environments and on multiple platforms such as cell or mobile telephones, computers, laptops, PDAs, and additional tools, aside from using good old TV sets. IPTV is still in its infancy as a service. It is undergoing significant growth, and different commercial approaches are developing that are likely to sustain its progress.
Some assert that low-budget production will potentially be the first type of media creation to transition to smaller devices and play the long tail game. Operating on the commercial end of the TV broadcasting pipeline, the current state of IPTV services and infrastructure, on the other hand, has several distinct benefits over its cable and satellite competitors. They include crystal-clear visuals, streaming content, custom recording capabilities, voice, online features, and instant professional customer support via alternative communication channels such as mobile phones, PDAs, global communication devices, etc.
For IPTV hosting to work efficiently, however, the Internet edge router, the core switch, and the IPTV server consisting of content converters and blade server setups have to collaborate seamlessly. Multiple regional and national hosting facilities must be highly reliable or else the broadcast-quality signals fail, shows may vanish and are not saved, chats stop, the visual display vanishes, the sound becomes choppy, and the shows and services will malfunction.
This text will address the competitive environment for IPTV services in the U.K. and the United States. Through such a detailed comparison, a range of meaningful public policy considerations across several key themes can be revealed.
2.Media Regulation in the UK and the US
According to jurisprudence and corresponding theoretical debates, the regulatory strategy adopted and the policy specifics depend on perspectives on the marketplace. The regulation of media involves competition-focused regulations, media ownership and control, consumer safeguarding, and the protection of vulnerable groups.
Therefore, if market regulation is the objective, we need to grasp what media markets look like. Whether it is about proprietorship caps, market competition assessments, consumer protection, or media content for children, the policy maker has to understand these sectors; which media sectors are seeing significant growth, where we have competitive dynamics, integrated vertical operations, and ownership crossing media sectors, and which media markets are slow to compete and ripe for new strategies of industry stakeholders.
Put simply, the landscape of these media markets has always shifted from static to dynamic, and only if we reflect on the policymakers can we predict future developments.
The growth of IPTV across regions normalizes us to its dissemination. By combining standard TV features with novel additions such as interactive IT-based services, IPTV has the potential to be a significant element in boosting remote area viability. If so, will this be sufficient for the regulator to adapt its strategy?
We have no data that IPTV has an additional appeal to individuals outside traditional TV ecosystems. However, some recent developments have slowed down IPTV's growth – and it is these developments that have led to dampened forecasts about IPTV's future.
Meanwhile, the UK adopted a flexible policy framework and a engaged dialogue with market players.
3.Major Competitors and Market Dynamics
In the British market, BT is the dominant provider in the UK IPTV market with a market share of 1.18%, and YouView has a 2.8% stake, which is the landscape of single and two-service bundles. BT is usually the leader in the UK according to market data, although it experiences minor shifts over time across the range of 7 to 9%.
In the United Kingdom, Virgin Media was the pioneer in launching IPTV through HFC infrastructure, followed by BT. Netflix and Amazon Prime are the leading over-the-top platforms in the UK IPTV market. Amazon has its own set-top device-centered platform called Amazon Fire TV, akin to Roku, and has just launched in the UK. However, Netflix and Amazon are excluded from telco networks.
In the United States, AT&T topped the ranking with a market share of 17.31%, outperforming Verizon’s FiOS at 16.88%. However, considering only IPTV services over DSL, the leader is CenturyLink, followed by AT&T and Frontier, and Lumen.
Cable TV has the overwhelming share of the American market, with AT&T successfully attracting an impressive 16.5 million users, largely through its U-verse service and DirecTV service, which also functions in Latin America. The US market is, therefore, split between the main traditional telephone companies offering IPTV services and modern digital entrants.
In these regions, leading companies use a converged service offering or a customer retention approach for the majority of their marketing, offering three and four-service bundles. In the United States, AT&T, Verizon, and Lumen depend on their proprietary iptv service provider infrastructure or existing telecom networks to deliver IPTV solutions, albeit on a smaller scale.
4.IPTV Content and Plans
There are variations in the programming choices in the British and American IPTV landscapes. The potential selection of content includes live broadcasts from national and regional networks, streaming content and episodes, recorded programming, and unique content like TV shows or movies accessible solely via the provider that could not be bought on video or aired outside the platform.
The UK services provide conventional channel tiers comparable with the UK cable platforms. They also provide moderately sized plans that cover essential pay-TV options. Content is categorized not just by genre, but by platform: terrestrial, satellite, Freeview, and BT Vision VOD.
The key differences for the IPTV market are the subscription models in the form of preset bundles versus the more customizable channel-by-channel option. UK IPTV subscribers can choose additional bundles as their content needs shift, while these channels will be pre-selected in the US, in line with a user’s initial fixed-term agreement.
Content alliances reflect the distinct policy environments for media markets in the US and UK. The trend of reduced exclusivity periods and the ongoing change in the market has major consequences, the most direct being the market role of the UK’s leading IPTV provider.
Although a late entrant to the busy and contested UK TV sector, Setanta is poised to capture a broad audience through its innovative image and having the turn of the globe’s highest-profile rights. The brand reputation goes a long way, alongside a product that has a cost-effective pricing and caters to passionate UK soccer enthusiasts with an appealing supplementary option.
5.Emerging Technologies and Upcoming Innovations
5G networks, in conjunction with millions of IoT devices, have transformed IPTV development with the introduction of AI and machine learning. Cloud computing is significantly complementing AI systems to unlock novel functionalities. Proprietary AI recommendation systems are increasingly being implemented by media platforms to engage viewers with their own unique benefits. The video industry has been enhanced with a fresh wave of innovation.
A higher bitrate, by increasing resolution and frame rate, has been a key goal in boosting audience satisfaction and gaining new users. The breakthrough in recent years were driven by new standards developed by industry stakeholders.
Several proprietary software stacks with a smaller footprint are close to deployment. Rather than focusing on feature additions, such software stacks would allow media providers to optimize performance to further refine viewer interactions. This paradigm, similar to earlier approaches, hinged on customer perception and their expectation of worth.
In the near future, as the technology adoption frenzy creates a level playing field in audience engagement and industry growth levels out, we predict a focus shift towards service-driven technology to keep older audiences interested.
We emphasize two primary considerations below for the two major IPTV markets.
1. All the major stakeholders may play a role in shaping the future in viewer interaction by making static content dynamic and engaging.
2. We see immersive technologies as the primary forces behind the rising trends for these domains.
The shifting viewer behaviors puts analytics at the center stage for every stakeholder. Legal boundaries would obstruct easy access to consumers' personal data; hence, privacy regulations would not be too keen on adopting new technologies that may risk consumer security. However, the current integrated video on-demand service market indicates a different trend.
The digital security benchmark is at its weakest point. Technological advances have made cyber breaches more remote than a job done hand-to-hand, thereby favoring cybercriminals at a larger scale than manual hackers.
With the advent of headend services, demand for IPTV has been increasing rapidly. Depending on user demands, these developments in technology are set to revolutionize IPTV.
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Baea, H. W. and Kima, D. H. "A Study about Moderating Effect of Age on The IPTV Service Subscription Intention." JBE (2024). kibme.org
Cho, T., Cho, T., and Zhang, H. "The Relationship between the Service Quality of IPTV Home Training and Consumers' Exercise Satisfaction and Continuous Use during the COVID-19 Pandemic." Businesses (2023). mdpi.com