1.Overview of IPTV
IPTV, or Internet Protocol Television, is growing in significance within the media industry. Compared to traditional cable and satellite TV services that use expensive and largely exclusive broadcasting technologies, IPTV is transmitted over broadband networks by using the same Internet Protocol (IP) that serves millions of personal computers on the modern Internet. The concept that the same shift towards on-demand services lies ahead for the multiscreen world of TV viewing has already captured the interest of various interested parties in the technology convergence and future potential.
Audiences have now begun consuming TV programs and other video entertainment in varied environments and on numerous gadgets such as smartphones, desktops, laptops, PDAs, and various other gadgets, aside from using good old TV sets. IPTV is still in its early stages as a service. It is expanding rapidly, and different commercial approaches are emerging that are likely to sustain its progress.
Some argue that low-budget production will probably be the first content production category to transition to smaller devices and explore long-tail strategies. Operating on the commercial end of the TV broadcasting pipeline, the current state of IPTV hosting and services, nevertheless, has several notable strengths over its traditional counterparts. They include crystal-clear visuals, on-demand viewing, custom recording capabilities, voice, internet access, and immediate technical assistance via alternative communication channels such as mobile phones, PDAs, satellite phones, etc.
For IPTV hosting to operate effectively, however, the internet gateway, the central switch, and the IPTV server consisting of content converters and server hardware configurations have to work in unison. Multiple regional and national hosting facilities must be entirely fail-safe or else the stream quality falters, shows could disappear and fail to record, chats stop, the visual display vanishes, the sound becomes choppy, and the shows and services will not work well.
This text will examine the competitive environment for IPTV services in the UK and the US. Through such a side-by-side examination, a number of meaningful public policy considerations across several key themes can be revealed.
2.Regulatory Framework in the UK and the US
According to legal principles and corresponding theoretical debates, the selection of regulatory approaches and the details of the policy depend on one’s views of the market. The regulation of media involves competition-focused regulations, media proprietary structures, consumer protection, and the protection of vulnerable groups.
Therefore, if the goal is to manage the market, we need to grasp what media markets look like. Whether it is about ownership limits, market competition assessments, consumer safeguards, or media content for children, the regulator has to possess insight into these areas; which media sectors are growing at a fast pace, where we have competition, integrated vertical operations, and cross-sector proprietorship, and which media markets are struggling competitively and suitable for fresh tactics of industry stakeholders.
Put simply, the landscape of these media markets has consistently shifted from static to dynamic, and only if we consider policy frameworks can we predict future developments.
The growth of IPTV across regions makes its spread more common. By combining standard TV features with innovative ones such as technology-driven interactive options, IPTV has the potential to be a crucial factor in enhancing rural appeal. If so, will this be sufficient for the regulator to adapt its strategy?
We have no evidence that IPTV has greater allure to non-subscribers of cable or satellite services. However, a number of recent changes have hindered IPTV expansion – and it is these developments that have led to tempering predictions on IPTV growth.
Meanwhile, the UK embraced a flexible policy framework and a proactive consultation with industry stakeholders.
3.Key Players and Market Share
In the British market, BT is the key player 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 usually the leader in the UK based on statistics, although it varies marginally over time across the 7 to 9 percent bracket.
In the United Kingdom, Virgin Media was the pioneer in launching IPTV based on digital HFC networks, with BT entering later. 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 launched in the UK. However, Netflix and Amazon are excluded from telco networks.
In the United States, AT&T leads the charts with a 17.31% stake, exceeding Verizon’s FiOS at 16.88%. However, considering only IPTV services over DSL, the leader is CenturyLink, with runners-up AT&T and Frontier, and Lumen.
Cable TV has the overwhelming share of the American market, with AT&T drawing 16.5 million IPTV customers, primarily through its U-verse service and DirecTV service, which also is active in Latin America. The US market is, therefore, divided between the major legacy telecom firms offering IPTV services and emerging internet-based firms.
In Europe and North America, key providers rely on bundled services or a loyal customer strategy for the majority of their marketing, including three and four-service bundles. In the United States, AT&T, Verizon, and Lumen largely use infrastructure owned by them or legacy telecom systems to offer IPTV services, albeit on a smaller scale.
4.Content Offerings and Subscription Models
There are distinct aspects in the programming choices in the UK and US IPTV markets. The range of available programming includes real-time national or local shows, streaming content and episodes, archived broadcasts, and exclusive productions like TV shows or movies exclusive to the platform that aren’t available for purchase or aired outside the here platform.
The UK services provide conventional channel tiers comparable with the UK cable platforms. They also offer mid-size packages that cover essential pay-TV options. Content is organized not just by genre, but by platform: terrestrial, satellite, Freeview, and BT Vision VOD.
The key differences for the IPTV market are the subscription models in the form of fixed packages versus the more flexible per-channel approach. UK IPTV subscribers can select add-on subscription packages as their viewing tastes change, while these channels come pre-bundled in the US, in line with a user’s initial fixed-term agreement.
Content collaborations highlight the distinct policy environments for media markets in the US and UK. The age of shrinking windows and the evolving industry has major consequences, the most direct being the market role of the UK’s leading IPTV provider.
Although a recent newcomer to the saturated and challenging UK TV sector, Setanta is poised to capture a broad audience through appearing cutting-edge and holding premier global broadcasting rights. The brand reputation is a significant advantage, paired with a product that has a competitive price point and offers die-hard UK football supporters with an enticing extra service.
5.Future of IPTV and Tech Evolution
5G networks, integrated with millions of IoT devices, have stirred IPTV development with the introduction of AI and machine learning. Cloud computing is significantly complementing AI systems to enable advanced features. Proprietary AI recommendation systems are being widely adopted by media platforms to enhance user engagement with their own unique benefits. The video industry has been transformed with a new technological edge.
A higher bitrate, either through resolution or frame rate advancements, has been a key goal in improving user experience and gaining new users. The advancements in recent years stemmed from new standards crafted by industry stakeholders.
Several proprietary software stacks with a compact size 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, similar to earlier approaches, relied on user perspectives and their desire to see value for their money.
In the near future, as the technology adoption frenzy creates a level playing field in audience engagement and industry growth levels out, we anticipate a focus shift towards service-driven technology to keep older audiences interested.
We emphasize two primary considerations below for both IPTV markets.
1. All the major stakeholders may participate in the evolution in viewer interaction by turning passive content into interactive, immersive content.
2. We see VR and AR as the main catalysts behind the growth trajectories for these domains.
The ever-evolving consumer psychology puts data at the core for every stakeholder. Legal boundaries would obstruct easy access to consumers' personal data; hence, user data safeguards would hesitate to embrace new technologies that may compromise user safety. However, the existing VOD ecosystem indicates a different trend.
The digital security benchmark is at its weakest point. Technological advances have made cyber breaches more virtual than physical intervention, thereby favoring cybercriminals at a larger scale than manual hackers.
With the advent of centralized broadcasting systems, demand for IPTV has been growing steadily. Depending on viewer habits, these developments in technology are set to revolutionize 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., 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