On the content side, apart from Japanese BS 11, which has been offering 3D broadcast since 2008, for couple of times a day; some other major broadcasters have announced their 3D plans and 2010, shall see more of the content available in three dimension. Of the majors include, Sky Sports 3D, Sky Movies 3D, MSG 3D, ESPN 3D, Sky 3D channel, etc.

Some of the channels started early 2010 and others are slated to be in the air by the end of this year. South Korean broadcaster, Korea Digital Satellite Broadcasting launched first in world 3D channel, SKY 3D. The channel has content of all genre like sports, documentaries, etc.

Also many major content providers and vendors like IMAX, Sony and Discovery have already announced their plans to launch a 24 hour channel by this year end. DirecTV and Panasonic also plan to launch 2 channels and 1 VOD channel with 3D content by end of 1H 2010.

All the above developments mean the kick start of 3D era for television. This will be a remarkable change in our perception about television. High Definition has already brought to us the ‘crystal clear’ content and 3D will definitely add a great value.

For the industry, it means a lot of opportunity all along the supply chain. But, at the begining, content will definitely be a bottleneck. The industry will need to adopt two directional strategy – creating new 3D content and converting the present 2D into 3D. So players like Adobe and Pinnacle have a great role to play in this segment.

Let’s see how the 3D eco-system evolves. This year it will be busy with creating the building blocks and probably by the end of 2011 and early 2012, we will be looking at some definite shape of the 3D TV eco-system. Happy 3D TV viewing!

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If we look at the advertising scenario of India, there are few heavy advertisers like Unilever, Procter & Gamble, Airtel, Hero Honda, etc. They buy spots in all the major shows where they see the maximum viewership. But, it does not give them a competitive edge. Their competitors can also place an ad during the same period. Or the channel can and does show advertisements of competing products.

Even though the people see their products, they also see the competitor product – which is good as well as bad. I personally feel, an advertiser must sponsor a show that is not also sponsored by its competitor. It is because of several things like brand, positioning, image, etc. that it could easily integrate with the contents of a particular show. If the competitor also places an ad with the same show, these things become industry specific rather than a brand specific.

The key in advertising is what one is advertising on – in case of television it is the content. So for a long term competitive advertising, advertisers must own the content rights. For instance, with respect to India, a product for female must own the content rights of say any K series programme so that only its ads are shown during that show. This can only be done through one strategy and that is if the advertisers launch their own channels. Rather than spending through others, they could buy the content for their channels. This would not only give an assured channel for advertising their products only but it would also save on the spending as many intermediaries are eliminated.

This way we could see channels owned by P&G, Unilever, Tata, etc. and they could just promote their products through these channels. All the content they would buy, would be theirs and they would have the exclusive rights of showing it. This is surely going to make advertising competitive and not only advertisements but the content of the channel would play an important role. For instance, Kingfisher is a premium brand, so having a channel that would have content pertaining to elite would be describing it.

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We as consumers are paying both for content and the service in the present service models. For the service we pay directly to the service provider by way of fees and for the content we are paying indirectly for advertisements.

I think we are paying at two instances under present models for entertainment. There is no logic in charging us twice. After all, whatever is fixed by the service provider for the service includes the share of channel owners and they fix the fee based on the content. So why are we paying twice for it? Moreover, we are paying to view for the content and that should not be supported by advertisements. Take instance of the content available over Internet. If you are subscribing to free services, they are ad supported and it you go for a paid subscription there are not ads. Similarly, it should be in case of television now. If one wants to view the content by paying for it, there should be no pop-up ads. Under present model we are just being fleeced and all in the value chain are skimming the profits.

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One important thing, I think every operator is missing in packaging of IPTV offer is bundling the channels by languages. Normally, operators offer something similar to basic, standard and premium packages that differ in the number of channels. Ideally, every end user would like to have the maximum number of channels it would like to view. But having the maximum channels would mean subscribing to the premium packages that are charged most.

In countries where we have large cosmopolitan cities, IPTV offers must be packaged by languages. This would hold true of countries in Asia, Middle East and some parts in the Europe. Usually the channels one would be interested in, is determined by the languages. So you might be interested in watching channels for which you understand the language in which it is aired. If IPTV service is packaged by languages, there are chances that users would be ready to pay more and the subscription would be more logical to them. For instance, if there is an Arab living in some country of Europe, he would prefer to subscribe to English and Arabic channels. Similarly a French person working in Middle East, would be interested in subscribing to French channels.

This way subscribers would get rid of those ‘unwanted’ channels that come by default with the subscription and unnecessarily inflate the package. Technically this could also bring in economies and the service provider would not be required to stream all the channels to each end user. The IPTV package would be based on the principle of VoD services, where you would be watching what you subscribe to.

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First of all the competition has increased manifold. Earlier the competition was among the telecom companies only or broadcasters only. But now the two industry segments are face to face. On top of it, the market dynamics have become very complex. The current communications and media market is a hybrid one that inherits characteristics from the parent industries. How well the synergy goes or the repulsion needs to be noticed?

In case of telcos, there is a competition within the industry as well between the fixed telephony operators and the cellular operators while in broadcasting there is no such thing. However, there are also different modes of offering the content like cable, satellite, etc. So these operators are also competing at a different level.

Both the segments have an incumbent that was essentially state owned in every country. However, the telecoms got used to other players much earlier than the television which is still being operated and owned by the government in many countries.

Without bias, I feel telcos have a better chance to win the market. Telcos have been living in competition for a long time now. There have been private ventures in the telecommunications market much earlier compared to the broadcasting towards which private investors looked at a later stage and the regulations also enabled that very late. In some countries, this is still not allowed.

Agreed, that in telecom also, the governments still have a major stake in the incumbent operator and many of the things are designed in such a way in the telecom market, that suit the incumbent only. But, at least there is an alternative provider.

Customerisation in the telecom is something that happened in the industry much earlier than in broadcasting. We had customer support, in whatever form, in the telecom, but in broadcasting it is still absent in many countries. Mobiles changed the telecom scenario in every country. The market commoditised, service approach changed, value added services concept got deeper and meaningful and lot many services emerged. The broadcasting market did not witness such a change. Though there are now alternatives how you want the content to be delivered in to your home television set; the market has not become competitive like the telecoms.

Technically as well, telecom operators have worked for a long on managing the network, keeping it up 24x7x365 and dealing with different technologies. They have also been in the environment where they are used to offering several services over one line.

With all these advantages and learning that telecom operators have earned during these many years, they are well positioned to better connect to the end users and that is very essential in this era of interactive technologies. My vote goes for telcos and definitely they will emerge as winners.

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Apart from the technology advancements (that mainly motivates operators), the end users need to get something interesting from IPTV. The content cannot be the winner alone. Television content is owned by different entertainment channels and they will never like to be aligned with a particular IPTV service or services. Similarly, it cannot happen that some channels will be available over IPTV service only. As far as service delivery mechanism goes, IPTV is more like DTH services – has similar EPG, features, interactivity, etc.

IPTV service providers have to think of innovative things to make their offer attractive. One service that came to mind is giving these IPTV channels a local competitive edge. With so many international channels available over any television network, we have become Hyperopic. We are well aware of the international issues that affect us indirectly or distantly but remain little aware of the things around, very close to us.

IPTV operators can play a role here that will also give them a differentiation. A service similar to Qik (that allows sharing of video from mobiles over Internet) can integrate mobiles and an IPTV service. By such a service, the subscribers can share videos from mobiles or even their digicams over their IPTV service. This can be shared over a community channel offered through IPTV. The channel will share the content from the residents of an area, county or a city. Further, it could also have an update feed based on the SMS content provided by residents. That way it will be a news by people for people.

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But it will not be an easy way for IPTV to grow in India. India has close to 130 million homes with a television and majority of them are fed by cable, around 55%. Rest is with conditional access, Direct to home and the terrestrial feeds. So it is not that IPTV can become a source or alternative of reaching to untapped market. The remaining households that do not have a television set cannot be the target market. They are in the deep regions of India that are not on the Internet map and might not even figure for decades to come; they are really very remote and do not have the affordability to own a television. They even lack basic facilities like the electricity. So they are used to the traditional ways of entertainment.

Effectively, the target market for IPTV could be the near 4 million broadband customers. Broadband subscribers primarily reside in urban India comprising of metropolitans and large cities. Their television sets are fed by cable, conditional access and DTH. Of these DTH has been recently introduced and there are seven providers including the national broadcaster Doordarshan which is offering the free DTH services (there is no monthly fee charged, but the service is basic). So the large cities where majority of the broadband customers are, use conditional access and DTH replacing the existing cable TV. Both conditional access system (introduced in four metros of Delhi, Mumbai, Kolkata and Chennai only) and the DTH have been operational for the past 2-3 years and the consumers have invested in the CPE. It is very rare that they will be inclined to switch to IPTV, effectively for nothing.

On top of it is the speed of broadband. ISPs in India offer broadband services starting from 256 KPBS that could go up to 2 MPBS. Most of the times, the speed is under 2 MPBS at around 1.3 – 1.5 MPBS over which every IPTV platform will not function optimally. Generally IPTV solutions are designed to operate with a minimum of 2 MPBS of speed. There are also issues about the uptime of Internet services. There are still locations in India where broadband services see regular failures.

The key to the success of any IPTV content in India is with the content. Interactivity of the package will not be a thing that will attract subscribers in large numbers. Generally, IPTV providers position their offers as something having a value addition by way of content, interactivity, applications and so on. But in India, these things seem to be very difficult and when consumers have already had the taste through CAS and DTH applications. Consumers are using EPG and other interactivity features that these platforms are offering. Games, recipe books, weather info and stocks info is also not going to attract the Indian consumer. Entertainment in India means movies, soaps and music, all of which is available over the present TV systems. The IPTV providers cannot fool the consumers in this area, where the India consumer is very educated and informed. If IPTV has to be a success thing in a short span of time, it has to really offer something of value add and that value addition has to be a real, visible, distinguishable and meaningful from consumers’ perspectives. Only then IPTV can have some foothold in India.

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