Interviews with Digital Media Thought Leaders

Is IPTV an Evolutionary Dead End?

Podcast Audio | Posted by Phil Leigh on August 7, 2007

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Summary: If you would like to learn about the future of IPTV and Internet Video, this interview is for you.
 
Our guest today is Steven Hawley who is the founder of Advanced Media Strategies. He is also the editor of IPTV News and is the IPTV analyst for the Multimedia Research Group (MRG), Inc.

IPTV is the telephone industry’s answer to the competitive threat from the Cable TV Industry. In our (Phil Leigh’s) analysis, it is an evolutionary dead end because we don’t think the consumer is going to want anyone controlling her access to media by providing a “walled prison” of content. Instead, we believe that the future will gravitate toward and Internet-of-Video. It is a concept that permits the consumer to access whatever content she wants at whatever time suits her.
 
Ultimately, an Internet-of-Video would make all TV programming and Hollywood movies available on the Net at places like YouTube. Some shows will be advertising supported, and some will be Pay-Per-View.
 
The telephone companies don’t like the Internet-of-Video concept, because they want to offer incremental content and services for incremental fees.  Essentially, they want to provide Internet access as a toll-booth to the Information Highway with the flexibility to put other toll-booths at five mile intervals down the road. In our analysis, most consumers are likely to react to the idea as 90-proof bull, and they won’t be buying any.

However, there are some encouraging signs that the telcos have arrived on the road to Damascus ready for an epiphany. For example, ATT wireless agreed to market Apple’s iPod cell phone whereas other carriers are still tying to charge a fee for incremental services like music downloading. But ATT’s Wireless’ plan of providing the best-of-breed solution (eg. the iPhone) seems to be enabling them to gain market share.

Length: This audio interview is covered in about 24 minutes.

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