Internet Protocol Television: A New Delivery Method for Video Content - Term Paper Example

 Internet Protocol Television: A New Delivery Method for Video Content Abstract This report serves to evaluate the innovation of Internet Protocol Television by analysing the technology itself and what the possible future implications and innovations this may lead to. Then the implications this technology will have on the key players within the Internet Television industry are discussed and the treats and opportunities highlighted. Lastly the value that Internet Protocol Television may have for a business is evaluated by analyzing the key business points of the innovation. Introduction The world of Television has become rooted within the daily life of consumer’s world wide for entertaining, information and educating. In the past decade a range of new technologies such as digital cable, HDTV, satellite and the internet have left its mark on the television landscape. With the popularisation of internet consumers have increasingly begun using the internet for entertainment, information and education due to its interactivity. Yet it could not replace television’s ability to give a high quality video image due slow connections, which could only offer users low quality video images from the internet. With the introduction of broadband internet users now have access to much faster information transfers. This has facilitated a new powerful entry to delivering of video content called Internet Protocol Television (IPTV). Technological Overview of Internet Protocol Television With the introduction of broadband internet access, which is a high data-transmission rate internet connection, real Internet Television became a reality. With the introduction of broadband that includes DSL, cable, iBurst (wireless broadband technology ) and other high-speed internet services, which are digital and not analogue, and could stream data up to 100 megabits per second resulted in the invention of IPTV, a system whereby a digital video content are delivered via a network with broadband capability. This could include an organization’s LAN, a high speed cable or a DSL connection. 2 IPTV could cover live broadcasting called multicasting (send to multiple users) or stored video called Video on Demand (VoD). The user could access IPTV through a normal personal computer or a TV with a “set-top box.” The formats that are normally used to stream video content to users are MPEG 2 or MPEG 4. IPTV uses standard protocol such as IGMP version 2 for live TV and RTSP for VoD. 3 Advantages Broadband data transfer services facilitate a host of different advantages by using the IP-based platforms, including the ability to integrate television with other IP-based services such as high speed internet and VoIP. In addition this offers the customers the ability to choose what content they want to watch when they choose to do so. Further more IPTV content can be developed to offer viewers interactivity such as menus, picture in picture and duel screen where viewer could watch video on one side of the screen and monitor web cameras on the other. IPTV uses a much better compression than the standard television, resulting in much smaller file sizes with higher quality images. Combined with this the user could choose to subscribe to what is called a Triple Play, where he can get telephone, data and video on one connection, reducing the clutter and amount of wires that is needed for each one of these functions. Another advantage of an IP-based network is the ability to integration and convergence of all telecommunications and IP related services. This will mean consumers will have access to content on their televisions, cell phones and PC’s anywhere at anytime. Disadvantages Due to the fact that IPTV is based on Internet Protocol it is sensitive to packet loss and delays if the IPTV connection is not fast enough. 3 In addition IPTV do not yet support HDTV, and when it does it will need even faster data transfer rates due to the size of the HD format. Some consumers are also concerned that when one provider is responsible for all the services, there may not be enough competition to ensure market related pricing. Lastly businesses are concerned at the security risk IPTV may have on their internal networks. Internet Protocol Television future Development Tele-Communications Companies are currently increasingly loosing income due to consumers switching to Skype and Voice over Internet Protocols (VoIP), which are utilising the internet for international telephone calls, costing the user only a fraction of telecom costs. Even businesses are switching over to VoIP as it reduces the amount of networks they need for telecoms and data transfer, combining both in one network. Figure 1 gives an indication of current and predicted market penetration of VoIP services. Fig 1: VoIP Penetration of Broadband Households 4 This the introduction of IPTV offer telecom’s companies an opportunity to increase their income by upgrading telecom networks to support IPTV through faster data transfer networks. A standard definition channel requires 3.5Mbps using MPEG-2 compression. A competitive video offering must support at least 3 channels of simultaneous viewing per home. For basic broadcast video parity a provider must offer more than 10Mbps per household, and that’s independent of Internet service. 5 Telecom companies’ world wide is in the process of upgrading their carrier networks to ADSL 2 and VDSL 2 in order to deliver television and video services. In-Stat reported that in 2005 153.1 million DSL ports were shipped world wide, and they expected this number to grow to 185.5 million in 2010. They also predict that the cost of ports will begin to drop due to pressures from vendors. The Influence of Internet Protocol Television on Businesses IPTV will have a definite influence on several industries, with the main one’s being the telecommunications and Broadcasting/Content Owner industries. Telecommunication Industry has being under pressure for a while now due to VoIP technology and customers switching over to cell phone technology. Yet Internet Protocol technology still needs the copper wires in order for Internet providers to offer their services to users. With the introduction of broadband users are increasingly converting from normal dialup to DSL and higher bandwidth connections. This many Telecom companies in countries across the world are starting to change their strategies and are offering high speed internet to their customers and changing their products and services on offer in order to increase income streams. Fig 2: IPTV Delivery Method 7 From figure 2 it is possible to see how video content would be delivered to the consumer. What is clear is that a telecom infrastructure would still be needed to carry the data to viewers, and if these companies offer services such as VoIP and IPTV as part of their products and services to users it should be possible to offer it at a much lower cost as other internet providers who still have to purchase transfer paths from telecom companies. The challenge that is facing fixed and mobile telecoms operators is not only to upgrade their infrastructure’s architecture but also to create and deliver new services, new applications, new networking technologies and new forms of communications such as peer-to-peer, and media/content-to-person in a cost effective manner. “These services and products will need to meet the customer’s expectations for quality, availability and reliability, while still offering network operators the flexibility needed to adapt quickly to new revenue-generating market opportunities and unexpected new demands.” 8 Next we need to evaluate how IPTV will influence the broadcasting industry, and this is where a set of complex issues are being realised. These broadcasters own the video content and offer it to its consumers at a cost, only to be viewed for a certain time on television or cinema circuits, and some content are available on video or DVD. Most broadcasters own their own broadcasting infrastructure, including satellite and cable, and it will be much cheaper if they could distribute their content using ISP networks. Yet, Network Operators want to charge Broadcasters to securely transfer their content across the telecoms infrastructure and charge customers to access contend which broadcasters see as loosing control. The additional problem for the broadcasters is that the network is called the internet, which is currently the reason they are loosing billions in income due illegal Pear to Pear (P2P) distribution technology. Some broadcasters such as BBC, Disney and Sky want to use legal P2P to distribute content to their customers, as it will reduce their distribution costs. The problem for the ISP’s is that traffic load is the same but due to P2P are shifted from one part of the network to another, meaning they are incurring the heavy backhaul costs that the broadcaster would have to put in if they were to do it themselves. Further more Broadcasters do not want to follow the same route as the music industry due to content piracy and are currently resisting the request from telecoms for quality content. This has created a new genre of young IPTV companies that are delivering, which are further reducing the big player’s position to stop this new technology. In the past the big players in the Broadcasting industry held all the cards, and could describe to their customers on what, where and when they could view their content. This is changing fast due to P2P users that can access most new high quality music and movie releases from Limewire, Kazaa and eMule. So why would a viewer pay for video content when he can get it for free, watch what he wants when he wants to. So the industry came up with the Digital Millennium Copyright Act (DMCA) and many other laws to change the very nature of a copywritten work. This a customer buys a license and can download a file but without the license are unable to view the contents, as it is protected by Digital Rights Management (DRM). Customers hate this technology, as they are unable to view the content they have a license for on different devices, and they do not understand it. So the only solution for broadcasters will be to follow the first rule of media – give people what they want. And when you give it to them, make sure it is better than anything else out there they might choose instead. At the very least DMR free, very fast, high quality, easy to use and reliable that doesn’t kill the internet connection. But most importantly, they know digital economics mean a lower distribution cost. So do not fall into the trap of profiteering and give it to them as cheap as possible (Cameron, Alexander, 2006, p2). 9 Key Criteria for IPTV Implementation in a Business Communication cost today makes up large part of a business’s overheads. Most businesses need telephone systems to be able to communicate; they need an information system in order to manage all their business processes and a media system to help them keep their employees informed. Slowly an integration of these services became evident with the introduction of the intranet, an internal network used to inform, send mail, educate, capture data and drive business applications. It further evolved to include VoIP services witch replaced telephone networks. IPTV could be the next level of integration into a business that can be used to inform, educate and communicate. To evaluate the value IPTV will have for a business a SWOT analysis of the key business points needs to be compiled, such as: Internal Strengths Integration of voice, video and data Reduced network cost Lower operating cost Online internal meetings Reduction in telecommunication costs Enhanced Training Opportunities Content on demand Interactive More options Weaknesses Users have access to critical systems within network Content protection Imposed restrictions for security Vulnerability Limited redundancy External Opportunities Customer outreach Flexibility Advertising Channel Cost effective content delivery Threats Unauthorized access Copyright issues Open design Malicious software Legislation change Service network availability Telecom infrastructure Conclusion The Internet technology has grown way beyond what it was designed to do. With faster broadband capability that have facilitated a new delivery method for digital video content. In the past low quality media was available, with increased download times the higher the quality of the content. With the faster DSL connections becoming more popular, users have started using Internet for more than just to access written media, games and music, but also for VoIP reducing the cost of communications. This gave rise to the development of a new technology that has the ability to transfer high quality video data across networks called Internet Protocol Television. Already the influence and impact of this new technology are becoming more evident as the Telecommunication industries are enhancing their infrastructure to enable them to take advantage of the opportunities it offers, giving them a chance to regain losses they incurred due to Voice over Internet applications and the introduction of mobile phones. Other players such as Broadcasters and Content owners are divided in how they think this technology will influence their industry, some seeing this as a threat and others as a golden opportunity to reduce distribution expenses. Already there is a change in copyright laws to try and accommodate the technology, with new Digital Rights Management applications to stop piracy of video content. The fact that Broadcasters and Content Owners are unwilling to supply telecoms with content to distribute over their network on IPTV is not helping to establish this technology, but have created the opportunity for new companies that are currently creating and supplying content to IPTV providers. What has become clear is that all key players will have to re-evaluate current business practices as customers have realised that they have a choice and options available to them, and to satisfy their wants suppliers will have to take the customers needs into consideration, or else loose their place in the entertainment race. Reference 1. Anderson, Nate. Television is changing. 2006. Accessed: 25 November 2006. Web page: http://arstechnica.com/guides/other/iptv.ars 2. Wikipedia. Broadbamd Internet Access. Updated: 25 November 2006. accesses 26 November 2006. Webpage: http://en.wikipedia.org/wiki/Broadband_Internet_access 3. Wikipedia. IPTV. Updated: 25 November 2006. Accesses 26 November 2006. Webpage: http://en.wikipedia.org/wiki/IPTV 4. Lu, Chin Yung. Key opportunities and threats raised by the growing use of Services over IP such as VoIP and IP-TV. Accessed: 27 November 2006. Web page: www.itu.int/osg/spu/youngminds/2006/essays/essay-chin-yung-lu.pdf 5. Laurel Networks. The Future of IPTV: Business and Technology Challenges. Accessed: 26 November 2006. Web page: www.convergedigest.com/whitepapers/documents/Laurel-IPTV.pdf 6. In-Stat. IPTV Will Drive Future of DSL IC Chipset Market Reports In-Stat. Business Wire. Accessed: 26 November 2006. Web page: http://voipforsmb.tmcnet.com/news/2006/08/21/119304.htm 7. Bethelehem, Danna. Streaming Picture to TV. Optibase. 8. Ericsson. Telecom quality in all-IP Networks. Accessed: 27 November 2006. Web page: www.ericsson.com/technology/whitepapers/3063_Telecom_Quality_all_IP_B.pdf 9. Cameron, Alexander. IPTV/VoD: The fall of content's kingdom. Digital TX Ltd. 24 June 2006. Accesseed: 27 November 2006. Web page: http://www.theregister.co.uk/2006/06/24/iptv_vod_content/ Read More