Internet TV, IPTV, HDTV, Resolutions, Compressions, Live Internet TV, Internet TV On Demand, Delivery methods, Broadband Requirements, etc. is a whole world of it's own.
I would just like to be able to use the Internet while the kids are downloading (whatever it is they download), without having flashbacks to dial up while trying to load a basic web page.
With the companies like YouTube etc. going to HD format, the users will grow until HD becomes the norm.
Most of the applications that use video on the Internet will at some stage offer HD as the norm, so using Internet TV gives us an indication of video requirements these applications will need. Also we will demand more than one live feed at a time.
The NBN has a projected cost of $43bn to build the network, $26bn of which is public funds.
The $26bn investment represents a total of approximately $3150 per Australian household, equating to $33 per household per month over the 8-year construction phase. This amount is almost what most of us pay in just line rental for our phone line per month. Also when the NBN is sold, that investment will be paid back, so the actual cost to us may be very little.
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The Wikipedia link below has a lot of excellent information and also has links to about 100 references used, (for and against the NBN).
In a recent European report that forecasts IPTV growth in the respective region, it was stated that the pay TV alternative will rocket in popularity over the next 5 years. It's believed that IPTV subscriptions will jump from 12.4 million to over 30 million subscriptions in this period despite the current economic downturn.
So what's this mean for Australian IPTV services?
For a start the likes of FOXTEL, FOXTEL from Telstra and AUSTAR, who dominate the pay TV market here in Australia, will be forced to re-strategise and strengthen their products and relationships within this Industry. You see, subscription based technology aside, there's still the issue of 'Content' to consider - What is everyone going to watch on IPTV? For example, FOXTEL hold many lucrative and exclusive relationships with Content Providers such as a Channel (e.g. The Lifestyle Channel) or sports rights (50 percent AFL - Australian Rules Football or 100 percent A-League) and essentially have a stranglehold on subscription TV. So regardless of IPTV provider networks, there's still going to be the underlying factor of media rich content to broadcast through an IPTV network.
The problem here surrounds Broadband speed as ADSL2+ is the only other option thats barely capable of of transmitting IPTV broadcasts.
While this form of Broadband technology certainly has the speed at the top end in which to broadcast such services, the problem primarily lays with accompanying latency and connectivity issues. ADSL2+ isn't reliable and top end speeds are generally theory based so more often than not subscribers to ADSL2+ would experience servicing interferences that just wouldn't cut it for IPTV broadcasting
Considering the NBN is commencing deployment later this year (to be completed over an 8 year period) and will be the foundation to drive home IPTV and Video on Demand type services, together with the projected growth figures in Europe expected over the next 5 years, it appears that IPTV's emergence in Australia will follow Europe's lead and become a popular subscription TV service. In the interim, ADSL2+ might not be be able to deliver high definition IPTV Australia wide, however, until the NBN comes into play..
TLS Price at posting:
$2.62 Sentiment: Hold Disclosure: Held
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