Saturday, August 2, 2014

12. Business Model

The IPTV service provides rich multimedia services over IP networks and is widely believed to be the next killer application over the Internet. It is generating a lot of interest, especially in potential service providers who are eager to develop successful business models that will ensure their survival in this emerging market. The success of an IPTV business will depend to a large extent on the ability of the service providers to provide the right IPTV contents and services to the right subscribers, at the right time and in a way that is most convenient and appealing to the subscribers.
For the services of IPTV, the sub working groups has started on identification of IPTV services, players/roles and the identification of business models. The contribution made by the companies and organizations mentioned are IPTV services scenarios using NACF over NGN, technical issues on IPTV standardization, commercial billing model of IPTV and others. Some of the proposed services for the IPTV focus group activities are pay per view (PPV), Interactive TV (iTV), Games, Presence service, Communications Messaging and many more as defined in.
The following sections describe some of the business models that can be used for IPTV system.

12.1 Free To Air (FTA)
One way for service providers to create revenue from this type is to charge users a fee to host their video content, to simplify sharing between friends and family members.
Another way to fund “free” video web portal is to sell advertising space on the portal itself or to push advertisements to viewers before the content is played.
The other common method is to offer preview of video content that needs to be purchased. For example, numbers of web sites have been created that provide free previews of these clips, along with the links to sites where they can purchase and downloaded.
In New Zealand Telstraclear service provider uses this FTA model to reach the subscribers.

12.2 Pay Per View (PPV)
PPV is often used for high-value content such as movies. In this model, the viewer purchases the right to view a specific piece of content over a specific time period. The viewer is allowed to pause, fast forward and rewind the content, but loses all rights after the viewing window expires. Part of the reason for these tight viewing window restrictions is simple profit maximization and the security. For example, TiVO uses this model technique in New Zealand.

12.3 Subscription
Subscription services are one of the most common methods used for funding IPTV systems. In this system, viewers sign up for a package of video channels and pay a flat monthly fee. Subscribers are then allowed to watch as much of any of the channels that are included in their subscription package.
There are two business models used under subscription.
• Live Video Access, where viewers pay a monthly fee in exchange for the rights to view live streaming video.
• Video Library Access, where viewers pay a monthly fee to have access to a collection of content that can be played.
Mysky HDi is one of the examples that use this model.

12.4 A La Carte
This is similar in concept to subscription, except that each viewer is allowed to select exactly the channels they want to view, so he or she does not pay for the undesired channels.
For IPTV providers, there are two advantages to this approach. These are:
• It is technically less difficult to deliver only a specific group of channels to each
• IPTV providers may capitalize on subscribers’ desires to pay only for those channels they wish to view.