IP TV Content Strategies Quarterly Technology & Content Report – May 2005

IP TV Content Strategies Quarterly
Technology & Content Report

May 2005

This report discusses how multi-national content aggregators, developers, and professional services companies are helping IP TV carriers of all sizes to design, deploy, and operate their IP TV linear video, VOD, and interactive services

Executive Summary

It is rightly said that “content is king” in planning and developing IP TV service offerings. It is clear that the success of an IP TV service depends on the selection, packaging, and presentation of content. It is important to IP TV service providers in competing with strong cable and satellite service providers. There are two principals that IP TV service providers should keep in mind as they develop their content strategy:

• They should maximize choice for their subscribers.

• They should maximize the involvement of their subscribers with the service.

These two factors will differentiate IP TV services from incumbent cable and satellite services. These incumbent services tend to have tiered offerings that require that the customer subscriber to all lower levels of programming in a tier to get a channel in one of the higher tiers. This approach may force a subscriber to pay for many channels that he or she does not want to receive to get a few desired channels.

This strategy requires moving closer to an a la carte strategy. A full a la carte strategy, as offered by PCCW in Hong Kong, may not be possible in other areas. Often content providers require that the service provider offer their less popular channels along with their market leaders. Manitoba Telecom has incorporated this into their offering that includes a basic set of channels plus about 25 channel groupings that subscribers select. It offers its subscribers to receive only basic or the basic channels plus one to eleven of channel groupings. Manitoba Telecom’s groupings provide its customers with a much wider range of choices than the offerings from its cable competition.

Video On Demand offerings provide both choice and involvement for IP TV subscribers. On Demand offerings include:

• Video On Demand that provides access to first run films, to library films, and to other content on a price per viewing basis.

• Subscription Video On Demand that provides access to films, TV programs, and other content that are typically offered by premium linear broadcast channels for a fixed monthly fee.

• Free On Demand that provides films, TV programs, and specially produced programs that are offered at no additional cost to the subscriber. On Demand content permits the subscriber to watch want they want when they want to watch it. It frees them from the fixed schedules offered by the linear broadcast channels. On Demand content also supports niche markets that include children, guitar players, or Yoga enthusiasts that are not served by linear broadcast channels. In fact, some people believe that On Demand content may replace the linear broadcast channels over time.

Table 1 shows the content strategy of U.K.-based content producer BBC Worldwide. The broadcaster has aligned with several content aggregators in order to best leverage IP TV’s multichannel capacity.

Table 1: BBC Worldwide’s IP TV Content Strategies

Content	Description
TV Channel	Video On Demand Content from programming produced by the BBC
TV Channel	BBC Prime international entertainment channel
TV Channel	BBC America provides BBC content for the U.S. market
TV Channel	BBC Kids children’s is a joint venture with Alliance Atlantis Communications to provide content for the Canadian market
TV Channel	BBC Canada is a joint venture with Alliance Atlantis Communications to provide BBC content for the Canadian market
TV Channel	Animal Planet is a joint venture with Discovery Communications
TV Channel	UK TV BBC is a joint venture with FreemantleMedia and FOXTEL to provide content for the Australian market
TV Channel	UKTV portfolio, BBC Worldwide’s joint venture channels with Telewest Global in the UK

Source: MRG, Inc.

Tables 2 and 3 list the content customers for two IP TV content consultants. Both 3Vision and BNS have already built client bases across their respective European and Asian markets.

Table 2: 3Vision’s IP TV Content Customers

Service Provider	Location	Description
Blockbuster	Hull, UK	Assisted with VOD acquisition for Kingston Communications service
Telekom Austria	Austria	Acquired content for its VOD service
Point One Digital	UK	Strategy and TV channel acquisition for IPTV service in new build developments
NEC	Europe	Content acquisition for hotel VOD service

Source: MRG, Inc.

Table 3: BNS IP TV Service Clients

Service Provider	Location	Description
Hanaro Telecom	Korea	System integration and content services
Chungwa Telecom	Taiwan	Content services
TMNet	Malaysia	Professional services contract to provide demo of complete IPTV service over TMNet’s live network

Source: MRG, Inc.

Table of Contents

1 Executive Summary

2 IP TV Content Choices
2.1 LINEAR BROADCAST CHANNELS
2.1.1 Over the Air Channels
2.1.2 Basic Cable Channels
2.1.3 Premium Cable Channels
2.2 ON DEMAND CONTENT
2.2.1 Video On Demand
2.2.2 Subscription Video On Demand
2.2.3 Free On Demand
2.2.4 Pay Per View
2.3 INTERACTIVE CONTENT
2.3.1 Interactive Overlays
2.3.2 Interactive Content
2.3.3 Interactive Games
2.3.4 TV-Based Internet Services
2.4 CONTENT PROTECTION AND DIGITAL RIGHTS MANAGEMENT

3 IP TV Content Acquisition Strategies
3.1 DEALING DIRECTLY WITH CONTENT PRODUCERS
3.2 USING CONTENT AGGREGATORS
3.2.1 Cable and IP TV Content Aggregators
3.2.2 IP TV Aggregators
3.2.3 Satellite Providers
3.2.4 Interactive Content Aggregators
3.3 USING CONTENT CONSULTANTS

4 IP TV Content Strategies
4.1 DEVELOPING CONTENT OFFERINGS
4.2 ACQUIRING LINEAR BROADCAST CONTENT
4.3 ACQUIRING ON DEMAND CONTENT
4.4 ACQUIRING INTERACTIVE CONTENT
4.5 CONTENT PACKAGING STRATEGIES

5 Opportunities, Risks, and Recommendations
5.1 OPPORTUNITIES
5.2 RISKS
5.3 RECOMMENDATIONS

6 Appendices
6.1 CONTENT PRODUCERS
6.1.1 BBC Worldwide
6.1.2 BBC Interactive
6.1.3 Hallmark Channel
6.1.4 ImaginAsian TV
6.1.5 Mag Rack
6.1.6 The Outdoor Channel
6.1.7 Shalom TV
6.1.8 Visiware
6.2 CONTENT CONSULTANTS
6.2.1 3Vision
6.2.2 Broadband Network Systems Ltd.
6.2.3 informitv
6.2.4 ON Demand Group
6.3 CONTENT AGGREGATORS
6.3.1 Broadstream Communications
6.3.2 Eagle Broadband
6.3.3 Gotuit Media
6.3.4 ICTV
6.3.5 TPS
6.3.6 TVN Entertainment
6.3.7 ViewNow
6.4 SYSTEM COMPANIES
6.4.1 Alcatel
6.4.2 Myrio

Table of Figures

Figure 6-1: ViewTrak Screens
Figure 6-2: ViewNow Programming Delivery Process

Table of Tables

Table 6-1: Content Producer Profiles
Table 6-2: BBC WORLDWIDE Fiscal 2004 Financial Results
Table 6-3: BBC WORLDWIDE IP TV Content Strategies
Table 6-4: BBC FISCAL 2004 FINANCIAL RESULTS
Table 6-5: BBC IP TV Content Strategies
Table 6-6: BBC IP TV Content Products
Table 6-7: BBC IP TV Content Customers
Table 6-8: CROWN MEDIA HOLDINGS INC Fiscal 2004 Financial Results
Table 6-9: HALLMARK CHANNEL IP TV Content Strategies
Table 6-10: HALLMARK CHANNEL IP TV Content Products
Table 6-11: IMAGINASIAN TV IP TV Content Strategies
Table 6-12: IMAGINASIAN TV Content Products
Table 6-13: MAG RACK IP TV Content Strategies
Table 6-14: MAG RACK IP TV Content Products
Table 6-15: MAG RACK IP TV Content Customers
Table 6-16: THE OUTDOOR CHANNEL HOLDINGS, INC. Fiscal 2004 Financial Results
Table 6-17: THE OUTDOOR CHANNEL IP TV Content Strategies.
Table 6-18: THE OUTDOOR CHANNEL IP TV Content Products
Table 6-19: SHALOM TV IP TV Content Strategies
Table 6-20: SHALOM TV IP TV Content Products
Table 6-21: VISIWARE IP TV Content Strategies
Table 6-22: VISIWARE IP TV Content Products
Table 6-23: CONTENT CONSULTANT PROFILES
Table 6-24: 3VISION IP TV Content Customers
Table 6-25: BNS IP TV Content Strategies
Table 6-26: BNS IP TV Content Products
Table 6-27: BNS IP TV Content Customers
Table 6-28: ON DEMAND GROUP IP TV Content Strategies
Table 6-29: ON DEMAND GROUP IP TV Content Customers
Table 6-30: CONTENT AGGREGATOR PROFILES
Table 6-31: EAGLE BROADBAND Fiscal 2004 Financial Results
Table 6-32: EAGLE BROADBAND IP TV Content Strategies
Table 6-33: EAGLE BROADBAND IP TV Content Products
Table 6-34: EAGLE BROADBAND IP TV Content Customers
Table 6-35: GOTUIT MEDIA IP TV Content Strategies
Table 6-36: GOTUIT MEDIA IP TV Original Content Products
Table 6-37: GOTUIT MEDIA Partner Content Products
Table 6-38: ICTV IP TV Content Strategies
Table 6-39: ICTV IP TV Content Products
Table 6-40: TPS IP TV Content Strategies
Table 6-40: TPS IP TV Content
Table 6-42: TPS IP TV Content Customers
Table 6-43: TVN ENTERTAINMENT IP TV Content Strategies
Table 6-44: TVN ENTERTAINMENT IP TV Content Products
Table 6-45: TVN ENTERTAINMENT IP TV Content Customers
Table 6-46: VIEWNOW Broadband Video Products
Table 6-47: VIEWNOW Broadband Video Deployments
Table 6-48: VIEWNOW Broadband Video Technology Partners
Table 6-49: Profiles of System Companies
Table 6-50: ALCATEL WORLDWIDE Fiscal 2004 Financial Results
Table 6-51: ALCATEL IP TV Content Strategies
Table 6-52: MYRIO IP TV Content Strategies

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IP TV Content Strategies Quarterly Technology & Content Report – May 2005. This 102-page report is available in the following editions:

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