p10-12,14,16 IPTV@IBC08 VOD v3 23/7/08 14:44 Page 11
Cable & Satellite Europe IPTV@IBC08 > On-demand business models
Customer retention is important for telcos too,
although the need to keep subscribers happy is more
acute because a churning customer could mean the loss
of income from three or four additional services. “In the an
US, more than 80% of VOD is free,” says Harmonic’s attrac-
(IBC Stand 1.C61) director of telco solutions Thierry tive con-
Fautier. “In Europe, it’s a mixture of free, subscription and tent proposition
pay. But if you want eyeballs, it has to be free.” is paramount, it is not
OpenTV’s (IBC Stand 1.C81) vice-president, solutions necessarily enough to persuade
marketing, Matthew Huntington argues that while free subscribers to churn from cable to
VOD will be the most popular option amongst users, IPTV. “I’m not very excited by the ability to
there will be a market for paid-for content too. “Most VOD offer new titles and shorter windows,” he says. “I
launches have started using a pay-per-view model, but the don’t think this alone will persuade a subscriber to switch Edgeware’s Orbit 2X
really successful services in terms of usage are the free from cable to IPTV. Shorter windows, and quality of titles streaming platform
services. Pay-per-view will grow in strength, however, as is great, but everyone can do it. Offering advanced servic- allows operators to
we see more day-and-date DVD releases.” In the short es like NPVR and VOD on the PC is more important.” deploy distributed net-
term, however, studios have sometimes proven to be As well as seeing substantial subscriber growth, some work infrastructures
reluctant to offer premium content in abundance to telcos telcos have begun to offer more advanced services. Taking to help manage
for a number of reasons including security concerns and advantage of two-way networks, some IPTV operators demand for VOD con-
lack of subscriber numbers to make it worthwhile. have been busy developing on-demand services that go tent.
Some IPTV operators, including Fastweb in Italy and beyond traditional VOD offerings. IP-based services have
France Telecom’s Orange TV, now offer thousands of gone past a critical stage in development in many mar-
titles on-demand. In both those cases, the services have kets. Services like catch-up TV, startover TV and timeshift
also attracted significant subscriber numbers. The ques- functionality are classed as on-demand services because
tion of what came first, the subscribers or the content, is they empower viewers to decide what and when they
a matter for debate. According to Fautier, while offering watch particular content, within certain parameters.
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