Special Report
model that can serve as a pragmatic roadmap decades of experience in broadcasting, IT and
to the growth of IPTV operators’ advertising transmission - together with proven
revenue and overall business profitability. technology that can support the entire
The first phase is striving to deliver better process of ad-supported television, including
quality video such as HDTV in order to multichannel, multiplatform operations. Last
provide a more enjoyable viewing year, more than $34 billion in advertising
experience. The second phase is to adopt a revenue was transacted by media
better business model that promotes greater organisations using Harris advertising
revenue potential and profitability. And the solutions.
third is the implementation of improved
media distribution operations, ensuring the Emerging opportunities
streamlining of workflows and a reduction in
labour and operating costs. As the IPTV market grows and expands in
Let’s look at a pragmatic roadmap on how Europe, so too will the opportunities for IPTV
to pursue phase two. What drives revenue vendors like Harris. The MRG report
improvement? Content is king but it does not with programme providers and benefit from estimates that spending by IPTV service
stop there. economies of scale. They can also invest the providers and revenue to systems integrators
There are three ‘C’s’ driving the quest for increased earnings to expand the interactive serving the IPTV market will both see
a better business model and revenue picture: capabilities of their physical plant and dramatic growth. At Harris, we can work
content, coverage and commercials. We infrastructure. Ultimately, reaching their either with systems integrators, or directly
consider these to be the ‘Media Mindset’. To audiences directly becomes a very attractive with IPTV service providers, depending on
effectively differentiate themselves from proposition for advertisers, which in turn which approach is more appropriate for any
competing media distribution operators, the also enhances the revenue potential for the particular circumstance.
IPTV operators must innovate on all three of IPTV operators. With our wide range of products relevant
the C’s. • Commercials - high-value advertising: to IPTV operations, Harris can serve as a
• Content: Once they’ve grown their subscriber bases one-stop shop providing a turnkey solution,
With content, IPTV service providers must and audience, the natural progression is to meeting the need for head-end (NetPlus
strive to offer the most compelling seek advertising deals and income that receiver/decoder), test and measurement
entertainment content possible to expand strengthen the bottom line. Since their (Videotek), video routers (Platinum), video
their subscriber bases and, as a result, attract viewers are people who elect to pay for the servers (NEXIO), transmitters (Diamond),
the interest of advertising agencies. They service, and since the IPTV platform offers master control (IconMaster), branding and
need to acquire ‘sticky’ content that is sure to the prospect of delivering targeted, graphics (Inscriber G-Series), and software to
attract viewers and draw them away from interactive advertising, IPTV operators can manage every aspect of a multichannel,
alternative viewing options. Ideally, sticky position their subscribers as desirable, high- multiplatform broadcast environment.
content should be something that is profile prospects and strike more lucrative As broadcasters add channels and
perceived as valuable and exclusive content - advertising deals. services, such as mobile TV and web video,
such as a major sporting event. Since many of the European IPTV they pass the point where a handful of
• Coverage: operators are just entering phase two of the master control operators can manage all of
That brings us to the second C - coverage. IPTV deployment, laying the groundwork to the necessary monitoring and programming
As a service improves the quality and value sell conventional, linear advertising, the functions that must be done well in order to
of its content, its subscriber base and market - i.e., advertising sellers and viewers deliver a flawless viewing experience.
subscriber revenues are likely to grow. As - may not be ready yet for a complete In the future, as the scope of their
more subscribers sign on, the audience advanced advertising solution. But based operations grows, we expect that IPTV
becomes more attractive to advertisers. A upon research we have from Gartner, MRG operators will eventually have need for
broader subscriber base also gives the service and other media market analysts, we’re automation software, such as our ADC-1000
operator increased buying power when confident that this is the direction that the and D-Series DSX automation systems.
negotiating for programming rights and industry is trending. And at Harris, we’re This is essentially the key to phase three -
acquiring coveted content. actively developing a solution for this implementing better media distribution
Improved coverage ultimately requires a challenging, innovative business model. operations to find areas where the workflow
multiplatform approach that incorporates For their current initiatives - trying to can be streamlined and labour and operating
other distribution avenues, such as the sell advertising agencies on placing costs reduced. The H-Class product family
Internet and mobile television service, which advertising on their service - the Harris H- can serve a wide range of operations, scaling
help propagate the core service in order to Class software product family comprises upward to automate the many processes
reach a larger audience - beyond those proven solutions designed to support every involved with even the most complex
people watching TV screens. aspect of commercial television operations. broadcast operation.
So to recap, expanding their coverage is Among these products are Landmark for The key to this sophisticated automation
vitally important to the growth of IPTV airtime sales and Vision for the scheduling technology is that it helps to streamline the
businesses and to gaining a positive and management of ad inventories and operation and reduce operating expenses -
momentum. By improving the quality and spots. giving IPTV operators the means to expand
value of the content, the audience grows. Harris can serve as a valuable resource for their operations and generate greater
IPTV service providers then have more clout European IPTV service providers, bringing profitability.
september 2008
iptv 27 guide2iptv
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