FTTH Grows Worldwide
March 2009
The number of countries with a high FTTH penetration has almost doubled in the past 18 months, according to the FTTH Council.
The organization tracks the level of FTTH market penetration for countries that have more than one percent of households connected to fiber and found that 20 countries met this threshold, up from 14 in July 2008 and 11 in July 2007.
The FTTH Council says that the growth comes from the expansion of fiber deployments in several European countries. In all, total European fiber deployments are at 2 million homes, however, the region with the most FTTH market penetration is Asia. Currently, South Korea leads the way with 44% of the market, Hong Kong was at 28% and Japan was close behind at 27%. In terms of sheer number of fiber connected homes, Japan was on top with 13.2 million, followed by the United States 6.05 million and China 5.96 million.
Source: MRG, Inc., March 2009 IPTV Bulletin
Zillion TV Steps Into the Crowded OTT Space
March 2009
Yet another OTT (Over-the-Top Internet Video) service has rolled out in early March, this one initially targeted at U.S. markets and subsequently at European and Asian markets. Intended to work mostly with Telcos and ISPs, the new “free” service(1) uses advanced user interface design and opt-in advertising-based viewing to create a primarily “pull” model to get people the on-demand programming they want. If people opt-in to watch a program for free, they’ll also see some ads. If consumers don’t want ads, they can pay a rental fee just like with its competition Apple TV, VUDU, Hulu and others. What’s different about Zillion TV is the viewer can pick a category of ads (like garden supplies, high mileage automobiles, travel packages to France, etc.) as a means to personalize them. What also is very different is the user interface and the remote control.
Comprised of a remote control and a slim set-top box (STB), Zillion TV uses UI technology from Hillcrest Labs, whose motion-based technology replaces the old scroll-up/down-on-a-matrix technique. To navigate, Zillion TV uses a wireless point-and-click remote control that is far more intuitive to use than the traditional matrix EPGs and remotes. The real key to the success of this service is that it provides ready access to about 15,000 titles, provides robust security for content protection, contains elements of QOS to maintain quality in its streaming delivery, enjoys
strong support from the major studios like Disney-ABC, Sony, and others, and generates both ad and PPV revenue.
Analyst Comment: MRG has stated before (including in the Widgets article in the January 2009 issue) that OTT services will need to function in partnerships with established IPTV and/or Cable Operators, rather than trying to compete with them, if they are to deliver a quality service. Although Zillion TV has its own QoS elements that it can exercise, we believe that as a standalone, it would quickly run afoul with the local Operator, despite what the network neutrality mavens may say in favor or against the Zillion TV approach. Because this is strictly an on-demand service, it is highly likely that some Operators may choose to use this as part of a hybrid service (e.g., using OTT for the on-demand service and digital terrestrial or satellite for free off air programming), as is becoming more popular in Europe today. While Zillion has a chance to penetrate an already crowded field, much of its success will ride on the quality and breadth of its ongoing content offerings, and on the success of its advertising offerings.
(1) A nominal up-front activation fee is charged.
Source: MRG, Inc., March 2009 IPTV Bulletin
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