Content deals may be critical for IPTV take-off

Where is the interest for telcos and movies/TV networks to deal?

First telcos are building IP-based broadband networks and will have to feed the pipes. Video is the best suitable way, but telcos do not intend just to provide another service, they are asked (by their customers) to provide bundled services (fixed and mobile voice, data, internet and video), and at the end one bill for the user. It is also for telcos a way to gain customer loyalty. Telcos, in addition, can bring content delivery to almost every household in developed countries, a market that rings bells for movies and TV networks. They also have another competitive advantage (over DVD, cable or satellite): a closed, secure IP network providing point-to-point solution, with conditional access and digital rights management (DRM) software, easier to manage and control what everyone is watching; in other words less piracy, a rationale that cannot let movies and TV networks indifferent.

Both for audience and content security reasons, content providers are warming up to the IPTV distribution channel. Several types of deals are envisaged: I will sort them in three major categories covering both wireline and wireless-aware content:

-          thematic content (i.e. music, sports, ..)

-          anticipated release of content (new movies, ….)

-          content exclusive rights (on a geographical zone)

All those categories are already trialed by telcos, but no one is yet emerging as the de facto business model. In fact, with such arrangements, end-users can find additional reasons to choose IPTV providers.