{"id":26389,"date":"2022-06-14T09:00:17","date_gmt":"2022-06-14T16:00:17","guid":{"rendered":"https:\/\/www.expressplay.com\/?post_type=intertrustblog&p=26389"},"modified":"2023-06-06T02:13:45","modified_gmt":"2023-06-06T09:13:45","slug":"transition-from-iptv-to-telco-ott","status":"publish","type":"intertrustblog","link":"https:\/\/www.expressplay.com\/ja\/blog\/transition-from-iptv-to-telco-ott\/","title":{"rendered":"\u901a\u4fe1\u4f1a\u793e\u306e TV \u304c IPTV \u304b\u3089 OTT \u306b\u79fb\u884c\u3059\u308b\u539f\u56e0\u306f\u4f55\u3067\u3059\u304b?"},"content":{"rendered":"

In this two-part blog series, we first outline the motivating factors behind the ongoing telco IPTV transition to over-the-top or OTT video streaming service delivery, followed by an examination of major telco OTT initiatives on every continent. In Part 2 (coming June 28) we’ll go a step further by discussing the importance of a content-rich user experience, followed by a review of the OTT content protection measures essential to successfully licensing compelling programming.<\/span><\/p>\n

A note on terminology<\/span>: In this blog series we use the term over-the-top (OTT) to denote telco-managed video streaming services delivered over its own infrastructure, previously used for IPTV services, as well as \u201ctrue\u201d OTT video streaming services offered outside of a telco\u2019s original IPTV service area to reach and capture new subscribers (to the extent permitted by content license and distribution agreements). The latter would include telcos utilizing broadband networks operated by others as well as fixed and mobile device 5G networks.<\/span><\/p>\n

Motivating factors driving telco TV transition to OTT<\/b><\/h2>\n

It may come as a surprise to some, but telco TV is turning out to be a good news story, thanks to an accelerating global transition from carriers\u2019 reliance on managed network IPTV technology to whole-hearted embrace of OTT channels and video streaming strategies utilizing their own as well as third-party networks.\u00a0<\/span><\/p>\n

However, just how good the news will be for each telco going through that transition greatly depends on some often-overlooked details about smart content security management that bear serious consideration. In a market where video content is king, supporting the protections demanded by license holders can be a kingmaker.<\/span><\/p>\n

It\u2019s clear why telcos, despite the impact IPTV subscriber attrition has had on their fortunes, are doubling down on their commitments to video. With cloud-driven transformation taking hold across the telecommunications industry, operators who pursue OTT agendas can do a better job of supporting the user experiences (UXs) consumers are looking for with greater operational freedom and at lower costs than was ever the case with IPTV.\u00a0<\/span><\/p>\n

As a result, they\u2019re discovering there\u2019s a big upside to delivering compelling mixes of live, pay per view, and on-demand programming that can be accessed on any device by any authorized user within and beyond their traditional service boundaries. Not to be outdone by competitors offering exclusive original programming, many carriers are even going so far as to invest in exclusive portfolios of both episodic and live sports content.<\/span><\/p>\n

Indeed, there\u2019s nothing more important to success in the intensely competitive OTT market than the ability to formulate a winning user experience (UX) with a programming package that\u2019s second to none. That\u2019s why the ability to support the robust content protection that\u2019s essential to licensing programming with the greatest consumer appeal is mission critical.<\/span><\/p>\n

\"telco<\/p>\n

As incumbent providers of telecommunications services, telcos who satisfy licensors\u2019 requirements have a big advantage in the battle for multi-screen streaming rights. They not only have the ability to leverage existing customer relationships to build big revenue-generating audiences for license holders. They have the operational knowhow and infrastructural wherewithal to implement the personalized feature enhancements and ad placements that are essential to maximizing ROI for all stakeholders.<\/span><\/p>\n

Industry advisors are taking note. <\/span>In a recent analysis<\/span><\/a>, telecom experts at the multi-industry consultancy Bain & Company remarked, \u201cToday, the capabilities of over-the-top media architectures surpass minimum quality-of-experience requirements, while also allowing for easier add-on functionality. This significantly enhances the overall customer experience. Going forward, communication services will no longer depend on fit-for-purpose networks, thus opening a new chapter in the telecommunications market.\u201d<\/span><\/p>\n

Similar observations were made in <\/span>a post by Kamal Bhadada<\/span><\/a>, the president of communications, media and information services at Tata Consultancy Services. \u201cThere are huge opportunities here,\u201d Bhadada wrote in reference to telco OTT. \u201cTelcos have the chance to monetize their infrastructure assets by providing their own next-generation OTT content and smart home services as add-ons.\u201d This is especially the case with telcos who are \u201ctaking advantage of 5G innovations to provide their customers with the kind of creative, value-add services previously only offered by OTT players.\u201d<\/span><\/p>\n

\"\"<\/p>\n

Of course, none of this would be happening were it not for the overwhelming impact of consumers\u2019 embrace of OTT platforms and services. The global OTT market, valued at $121.61 billion in 2019, is expanding at a 29.4% CAGR on course to top $1 trillion by 2027, <\/span>according to Allied Market Research<\/span><\/a>, one of multiple researchers projecting such growth trajectories.\u00a0\u00a0<\/span><\/p>\n

Major telco OTT initiatives on every continent<\/b><\/h2>\n

While telco OTT strategies vary widely, all have in common the pursuit of UX with maximum appeal in their targeted home markets and beyond. In some cases, carriers are abandoning IPTV services altogether, while, in others, they\u2019re pursuing hybrid models aimed at retaining subscribers who prefer the old way of doing things as they go after the growing masses of consumers, especially in the millennial and Z generations, who don\u2019t.\u00a0<\/span><\/p>\n

A multi-regional snapshot of major telco OTT operations reveals the scope of what\u2019s in play:<\/span><\/p>\n