1.Overview of IPTV
IPTV, or Internet Protocol Television, is gaining increasing influence within the media industry. Unlike traditional TV broadcasting methods that use expensive and primarily proprietary broadcasting technologies, IPTV is streamed over broadband networks by using the same Internet Protocol (IP) that powers millions of personal computers on the modern Internet. The concept that the same shift towards on-demand services is anticipated for the era of multiscreen TV consumption has already captured the interest of numerous stakeholders in technology integration and potential upside.
Viewers have now begun consuming TV programs and other media content in a variety of locations and on numerous gadgets such as cell or mobile telephones, computers, laptops, PDAs, and various other gadgets, alongside conventional televisions. IPTV is still in its infancy as a service. It is growing, however, by leaps and bounds, and numerous strategies are taking shape that could foster its expansion.
Some assert that low-budget production will probably be the first content production category to reach the small screen and play the long tail game. Operating on the business side of the TV broadcasting pipeline, the current state of IPTV hosting or service, however, has several distinct benefits over its cable and satellite competitors. They include crystal-clear visuals, flexible viewing, DVR functionality, communication features, web content, and responsive customer care via alternative communication channels such as cell phones, PDAs, satellite phones, etc.
For IPTV hosting to operate effectively, however, the Internet edge router, the central switch, and the IPTV server consisting of media encoders and server hardware configurations have to interoperate properly. Numerous regional and national hosting facilities must be entirely fail-safe or else the broadcast-quality signals fail, shows seem to get lost and are not saved, communication halts, the picture on the TV screen is lost, the sound becomes discontinuous, and the shows and services will malfunction.
This text will discuss the competitive environment for IPTV services in the United Kingdom and the US. Through such a detailed comparison, a number of meaningful public policy considerations across various critical topics can be explored.
2.Regulatory Framework in the UK and the US
According to the legal theory and corresponding theoretical debates, the choice of the regulation strategy and the details of the policy depend on perspectives on the marketplace. The regulation of media involves competition policy, media proprietary structures, consumer protection, and the safeguarding of at-risk populations.
Therefore, if the goal is to manage the market, we must comprehend what media markets look like. Whether it is about ownership restrictions, market competition assessments, consumer rights, or media content for children, the policy maker has to possess insight into these areas; which content markets are expanding rapidly, where we have market rivalry, integrated vertical operations, and cross-sector proprietorship, and which sectors are struggling competitively and ripe for new strategies of industry stakeholders.
Put simply, the landscape of these media markets has always shifted from static to dynamic, and only if we consider policy frameworks can we predict future developments.
The rise of IPTV on a global scale accustoms us to its adoption. By combining traditional television offerings with novel additions such as interactive digital features, IPTV has the potential to be a key part of increasing the local attractiveness of remote areas. If so, will this be sufficient for the regulator to adapt its strategy?
We have no proof that IPTV has an additional appeal to individuals outside traditional TV ecosystems. However, a number of recent changes have hindered IPTV expansion – and it is these developments that have led to dampened forecasts about IPTV's future.
Meanwhile, the UK embraced a liberal regulation and a proactive consultation with industry stakeholders.
3.Market Leaders and Distribution
In the British market, BT is the dominant provider in the UK IPTV market with a share of 1.18%, and YouView has a 2.8% share, which is the scenario of single and two-service bundles. BT is typically the leader in the UK according to market data, although it varies marginally over time across the 7 to 9 percent bracket.
In the United Kingdom, Virgin Media was the first to start IPTV through HFC infrastructure, followed shortly by BT. Netflix and Amazon Prime are the dominant streaming providers in the UK IPTV market. Amazon has its own set-top device-centered platform called Amazon Fire TV, akin to Roku, and has just entered the UK. However, Netflix and Amazon are absent from telecom providers' offerings.
In the US, AT&T leads the charts with a share of 17.31%, surpassing Verizon’s FiOS at a close 16.88%. However, considering only IPTV services over DSL, the leader is CenturyLink, followed by AT&T and Frontier, and Lumen.
Cable TV has the dominant position of the American market, with AT&T successfully attracting 16.5 million IPTV customers, mostly through its U-verse service and DirecTV service, which also functions in the Latin American market. The US market is, therefore, segmented between the major legacy telecom firms offering IPTV services and modern digital entrants.
In these regions, key providers use a converged service offering or a strategy focusing on loyal users for the majority of their marketing, offering three and four-service bundles. In the United States, AT&T, Verizon, and Lumen largely use infrastructure owned by them or existing telecom networks to deliver IPTV solutions, however on a lesser scale.
4.Content Offerings and Subscription Models
There are distinct aspects in the programming choices in the UK and US IPTV markets. The potential selection of content includes real-time national or local shows, on-demand programs and episodes, recorded programming, and original shows like TV shows or movies exclusive to the platform that could not be bought on video or aired outside the platform.
The UK services feature classic channel lineups similar to the UK cable platforms. They also include medium-tier bundles that include the key pay TV set of channels. Content is grouped not just by preferences, but by medium: terrestrial, satellite, Freeview, and BT Vision VOD.
The primary distinctions for the IPTV market are the payment structures in the form of preset bundles versus the more customizable channel-by-channel option. UK IPTV subscribers can opt for extra content plans as their viewing tastes change, while these channels will be pre-selected in the US, in line with a user’s initial long-term plan.
Content alliances highlight the varied regulatory frameworks for media markets in the US and UK. The era of condensed content timelines and the evolving industry has notable effects, the most direct being the market role of the UK’s primary IPTV operator.
Although a late entrant to the saturated and challenging UK TV sector, Setanta is placed to attract a large customer base through its innovative image and securing top-tier international rights. The brand reputation is a significant advantage, alongside a product that has a competitive price point and provides the influential UK club football fans with an enticing extra service.
5.Technological Advancements and Future Trends
5G networks, in conjunction with millions of IoT devices, have stirred IPTV development with the integration of AI and machine learning. Cloud computing is significantly complementing AI systems to implement new capabilities. Proprietary AI recommendation systems are gaining traction by media platforms to enhance user engagement with their own advantages. The video industry has been transformed with a new technological edge.
A enhanced bitrate, via better resolution or improved frame rates, has been a main objective in improving user experience and gaining new users. The technological leap in recent years were driven by new standards established by industry stakeholders.
Several proprietary software stacks with a reduced complexity are nearing release. Rather than focusing on feature additions, such software stacks would allow media providers to optimize performance to further refine viewer interactions. This paradigm, reminiscent of prior strategies, hinged on customer perception and their need for cost-effectiveness.
In the near future, as rapid tech uptake creates a uniform market landscape in viewer satisfaction and industry growth stabilizes, we anticipate a service-lean technology market scenario to keep older audiences interested.
We emphasize two key points below for the two major IPTV markets.
1. All the major stakeholders may participate in the evolution in content consumption by transforming traditional programming into interactive experiences.
2. We see VR and AR as the main catalysts behind the emerging patterns for these areas.
The shifting viewer behaviors puts data at the core for every stakeholder. Legal boundaries would restrict unrestricted availability to user information; hence, privacy regulations would likely resist new technologies that may compromise user safety. However, the current integrated video on-demand service market suggests otherwise.
The cybersecurity index is at its weakest point. Technological leaps and bounds have made system hacking more virtual than manual efforts, thereby benefiting cybercriminals at a greater extent than black-collar culprits.
With the advent of hub-based technology, demand for IPTV has been on the rise. Depending on user demands, these developments in technology are poised to redefine IPTV.
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Baea, H. W. and Kima, D. H. "A Study about Moderating Effect of Age on The IPTV Service Subscription Intention." JBE (2024). kibme.org
Cho, T., Cho, T., IPTV for Educational Content and Zhang, H. "The Relationship between the Service Quality of IPTV Home Training and Consumers' Exercise Satisfaction and Continuous Use during the COVID-19 Pandemic." Businesses (2023). mdpi.com