What is IPTV?

IPTV converts a television signal into packets of data, sending the information directly to a set-top box, a special server or your PC. IPTV has efficient use of bandwidth.

Traditional broadcast only allows for viewers to watch the TV but does not allow interactivity.

IPTV will provides for interactive viewing, enhanced program selection, large storage of video and the ease of moving video data between your television and PC.

Why is IPTV relevant bo cable, broadband, service providers, telcos, operators, content owners, and hardware makers?

Cable operators have challenged telecommunications companies with the introduction of VoIP or Voice Internet Protoco. Telcos are now trying to seize market share from video services called triple play.  Triple play includes .

video, voice and data services delivered to consumers on one DSL or high speed Internet connection.

Tthe three major telecos, SBC , BellSouth and Verizon are launching IPTV service on a limited basis in major metropolitan areas. SBC projects having 18 million households wired to receive IPTV by 2007.

Micorsoft has deals with seven major telcos representing an estimated 25 million broadband subscribers to use its IPTV software. Their deal with SBC is the largest to date, an estimated $400 million over the next decade.

What Is IPTV's Potential?

Analysts estimate that IPTV will be the primary driver behind the 24% annual growth in online entertainment over the next year worldwide. The online entertainment category overall is expected to increase from $12.3 billion last year to $36 billion in 2009.

On the programming side, IPTV creates a economically viable opportunity to target television shows to more and more targeted niche audiences and programs that include interactivity.

Challenges & Opportunities for Broadcasters

IPTV creates even more competition in an increasingly cluttered television landscape. It will potentially launch the television universe from one of 500 channels to one of infinite choices. The impact will increase fragmentation of the broadcast audience.

However, IPTV may create new revenue streams for broadcasters to drive some additional revenue from their video archives. Broadcasters an find ways to edit and repurpose video footage to disseminate to niche audiences who will pay for these premium services.