IPTV – Who Will Make Money Off The Matrix
IPTV – Who Will Make Money Off The Matrix
The Internet Matrix emerged in the late ‘80s with three struggling internet service providers (ISPs) serving researchers, educators and a few business people. It enjoyed spectacular growth.
Morpheus and Neo sat there just enjoying the success !!!
The Internet’s Matrix 2 came in the ‘90s with more excitement, more money than people could imagine. The death of many of the stars was painful…and expensive.
With the slow, struggling emergence of IPTV the third remake is here.
It is scaring the hell out of everyone…CE manufacturers, Tellywood, advertisers and yes more than a few consumers who don’t know what to watch or where to watch it !!!
CE manufacturers know folks around the globe have gone digital. We’ve got our MP3 players, computers for everyone in the family, home networks (ok some do) and slowly HDTV sets. But if we all migrate to IPTV they have to deal with MPEG 4 decoders, new formats and gawd sets that are just large monitors.
That’s exactly what Sony, Matsushita (Panasonic) and a few others plan to do early next year…Internet TV sets.
They might as well.
Kids do most of their multitasking in front of their computers anyway.
They’re even helping boomers keep the heat on for global broadband growth.
Our son for example doesn’t have time for TV. His truck’s bumper sticker declares his freedom…“Kill Your TV.”
Unplug the cable?
No problem.
Just don’t touch his DSL connection !!!
True the world isn’t all broadband…yet.
But it is connected.
And it’s getting faster…slowly.
Last year, 194 million households WW had broadband service. By 2010 the number will increase to 413 million according to In-Stat.
The U.S. may have the best Internet products but the country is still only #12 in the high speed connected world. Iceland and South Korea lead the pack while Northern Europe has seven of the top ten slots.
Cable – big in the U.S. and Canada – will make modest bundled gains over the next few years but most folks seem to think of cable as aahh…TV!
Strategy Analytics believes the incumbents and independent DSL providers will have the greatest growth. But then they still have a lot of progress to make in their creative billing practices.
You’d think the competition would give us ordinary folks an edge…doesn’t happen.
In fact, the telcos want to get even more creative with their pipes.
For example they want to slice and dice their service charges. Want video…VoIP, music…security…IPTV?
Doesn’t matter if the pipe isn’t being used…you should pay more !!!!
Then too there is that little thing called QOS (quality of service) !!!!
Our kid is part of the increasingly connected generation…
Cellphone in hand, listening to online music, IMing friends and whomever, surfing for class assignments, updating his MySpace, catching the latest on YouTube he has no time for regular TV !!!
If he wants a “real” show, he knows where the online stuff is at. And according to Online Publishers Association (OPA) he isn’t alone.
In fact Arbitron reports that Internet viewing has been increasing steadily in the U.S. – 7% in January ’04, 8% in ’05, 12% in ’06.
That could be habit forming !!!!
And according to iSuppli it will.
IPTV subscribers in Western Europe are projected to be more than 16.7 thousand by 2010 compared to 3,283 thousand this year. In the U.S. there will be more than 422 M homes with broadband by then.
All prime candidates for complete entertainment their way !!!
IPTV is expected to expand by a factor of more than 26 from last year to 2010!
iSuppli sees the subscribers growing from 2.4 million last year to more than 63 million by 2010.
That is a growth rate of 92.1% by anyone’s calculations !!!
What worries the controllers is that people who are viewing this stuff aren’t just kids.
Nielsen’s research shows that:
- 12.61% are 12-17
- 7.15% are 18-24
- 19.11% are 25-34
- 54.46% are 35-64
- The rest are at the other ends of the age groups
That means serious loss of viewers’ eyeballs and worse yet advertisers clutch purses….sheess!!!
Just as online music created an opportunity for indie musicians, they have found an eager market for music video webcasts. Clubs across the country are installing webcams to entertain the global online market. It is great promotion for the clubs…for the bands…for the music lover.
For example Gig, a club in LA, regularly video records unsigned bands for their showcase. As the online audience grows you’ll be certain merchandising will follow – music video sales, club and group merchandise and yes even download song sales.
Online competitors to cable’s MTV are also getting off the ground. Network Live, Live Nation and others are working on music VOD and a range of streaming entertainment.
Every conventional TV network and production operation has similar video education, information and entertainment projects in the works.
Tellywood isn’t certain how much of their audience IPTV will siphon off but they do know if someone is going to start eating their lunch. They want to be the fat cats at the table doing it!!!
Biggest problem?
Finding the damn show you gotta see is impossible. There are thousands of shows/channels on the Internet now and in a few years there will be like a gazillion IPTV channels around the globe.
No one has come up with a good on-line service TV Guide.
It’s OK for the time being. Our son sends us cryptic notes saying we should check out such and so.
Of course he’s not going to be home forever (we hope).
The IPTV trend spells huge expenditures in advertising, value added TV-based services and video services.
ISPs haven’t been this excited since the ‘80s.
As Morpheus said, “Throughout human history we have been dependent on machines to survive. Fate, it seems, is not without a sense of irony.”
The battle has only just begun.
Over the next few years there will be a huge push for subscribers.
Providing video will simply be the admittance ticket.
They will have to offer a rich set of offerings and…aggressive pricing.
As Cypher said…” It means buckle up your seatbelt, Dorothy, ‘cause Kansas is going bye-bye.”
Today, the Internet is the place to see and be seen. Even if you’re a nobody you can be seen.
Certainly Tellywood is jumping on the bandwagon if only out of defense. But it is the indies who have the potential and the power to change the control structure (and heck even make some money along the way).
The potential numbers look good.
The margins look good.
The profits look good.
Of course initially the picture quality is only just passably good…not great.
That’s understandable – and acceptable – at this stage in the technology’s growth.
There are a whole new set of technical issues to be worked out. Like:
- high-def versions of H.264, VC-1, MPEG-4, DivX, JPEG
- correcting jaggies, judder, motion blur
- our beloved DRM
Internet video has a huge upside. But it comes with a risk to the content owners cannibalizing their present revenue streams. And for the next few years they will simply try to survive in The Matrix.
There will be ad-based, subscription-based and all-you-can-eat buffet services.
Not surprisingly lots of folks – content owners, aggregators and ISPs -- like the ad-based approach. Folks like Google and Yahoo are getting ad folks trained in the 1-1 online advertising model. Last year it accounted for about $13 billion or 4.6% of the total media advertising. By 2009 it is projected to be $22.3 billion or 7.5% of the total.
That’s not chump change !!!
Add that to Tellywood’s grand scheme of rent-not-to-own video and it will change the industry … dramatically.
Of course there are a few obstacles like lawyers…new definitions of IP…ancient laws…lawyers.
Tellywood obviously wants to maintain it’s strangle hold over content rentals.
The online video sites are getting personal and indie content – some ultra bad, some mediocre, some pretty darned good – from everywhere.
Sites like MySpace Videos, Yahoo! Video Search, MSN Video Search, Google Video Search, AOL Video and …oh yeah YouTube are already gaining huge audiences. Even lowly Grouper, which Sony just bought, showed a traffic increase of 1,678% in the first six months of the year according to Hitwise.
They prove that creativity doesn’t just reside in Tellywood and folks have a wide range of interest levels (commonly referred to as Chris Andersen’s Long Tail view of tomorrow).
Loosely translated consumers may be able to tell Tellywood…Our way…or the highway.
#############
IPTV Who Will Make Money Off The Matrix - To learn more about this author, visit Andy Marken's Website.
Like this article? Share it with your friends
“A déjà vu is usually a glitch in the Matrix. It happens when they change something,” – Trinity in the 1999 movie The Matrix
The Internet Matrix emerged in the late ‘80s with three struggling internet service providers (ISPs) serving researchers, educators and a few business people. It enjoyed spectacular growth.
Morpheus and Neo sat there just enjoying the success !!!
The Internet’s Matrix 2 came in the ‘90s with more excitement, more money than people could imagine. The death of many of the stars was painful…and expensive.
With the slow, struggling emergence of IPTV the third remake is here.
It is scaring the hell out of everyone…CE manufacturers, Tellywood, advertisers and yes more than a few consumers who don’t know what to watch or where to watch it !!!
CE manufacturers know folks around the globe have gone digital. We’ve got our MP3 players, computers for everyone in the family, home networks (ok some do) and slowly HDTV sets. But if we all migrate to IPTV they have to deal with MPEG 4 decoders, new formats and gawd sets that are just large monitors.
That’s exactly what Sony, Matsushita (Panasonic) and a few others plan to do early next year…Internet TV sets.
They might as well.
Kids do most of their multitasking in front of their computers anyway.
They’re even helping boomers keep the heat on for global broadband growth.
Our son for example doesn’t have time for TV. His truck’s bumper sticker declares his freedom…“Kill Your TV.”
Unplug the cable?
No problem.
Just don’t touch his DSL connection !!!
True the world isn’t all broadband…yet.
But it is connected.
And it’s getting faster…slowly.
Last year, 194 million households WW had broadband service. By 2010 the number will increase to 413 million according to In-Stat.
The U.S. may have the best Internet products but the country is still only #12 in the high speed connected world. Iceland and South Korea lead the pack while Northern Europe has seven of the top ten slots.
Cable – big in the U.S. and Canada – will make modest bundled gains over the next few years but most folks seem to think of cable as aahh…TV!
Strategy Analytics believes the incumbents and independent DSL providers will have the greatest growth. But then they still have a lot of progress to make in their creative billing practices.
You’d think the competition would give us ordinary folks an edge…doesn’t happen.
In fact, the telcos want to get even more creative with their pipes.
For example they want to slice and dice their service charges. Want video…VoIP, music…security…IPTV?
Doesn’t matter if the pipe isn’t being used…you should pay more !!!!
Then too there is that little thing called QOS (quality of service) !!!!
Our kid is part of the increasingly connected generation…
Cellphone in hand, listening to online music, IMing friends and whomever, surfing for class assignments, updating his MySpace, catching the latest on YouTube he has no time for regular TV !!!
If he wants a “real” show, he knows where the online stuff is at. And according to Online Publishers Association (OPA) he isn’t alone.
In fact Arbitron reports that Internet viewing has been increasing steadily in the U.S. – 7% in January ’04, 8% in ’05, 12% in ’06.
That could be habit forming !!!!
And according to iSuppli it will.
IPTV subscribers in Western Europe are projected to be more than 16.7 thousand by 2010 compared to 3,283 thousand this year. In the U.S. there will be more than 422 M homes with broadband by then.
All prime candidates for complete entertainment their way !!!
IPTV is expected to expand by a factor of more than 26 from last year to 2010!
iSuppli sees the subscribers growing from 2.4 million last year to more than 63 million by 2010.
That is a growth rate of 92.1% by anyone’s calculations !!!
What worries the controllers is that people who are viewing this stuff aren’t just kids.
Nielsen’s research shows that:
- 12.61% are 12-17
- 7.15% are 18-24
- 19.11% are 25-34
- 54.46% are 35-64
- The rest are at the other ends of the age groups
That means serious loss of viewers’ eyeballs and worse yet advertisers clutch purses….sheess!!!
Just as online music created an opportunity for indie musicians, they have found an eager market for music video webcasts. Clubs across the country are installing webcams to entertain the global online market. It is great promotion for the clubs…for the bands…for the music lover.
For example Gig, a club in LA, regularly video records unsigned bands for their showcase. As the online audience grows you’ll be certain merchandising will follow – music video sales, club and group merchandise and yes even download song sales.
Online competitors to cable’s MTV are also getting off the ground. Network Live, Live Nation and others are working on music VOD and a range of streaming entertainment.
Every conventional TV network and production operation has similar video education, information and entertainment projects in the works.
Tellywood isn’t certain how much of their audience IPTV will siphon off but they do know if someone is going to start eating their lunch. They want to be the fat cats at the table doing it!!!
Biggest problem?
Finding the damn show you gotta see is impossible. There are thousands of shows/channels on the Internet now and in a few years there will be like a gazillion IPTV channels around the globe.
No one has come up with a good on-line service TV Guide.
It’s OK for the time being. Our son sends us cryptic notes saying we should check out such and so.
Of course he’s not going to be home forever (we hope).
The IPTV trend spells huge expenditures in advertising, value added TV-based services and video services.
ISPs haven’t been this excited since the ‘80s.
As Morpheus said, “Throughout human history we have been dependent on machines to survive. Fate, it seems, is not without a sense of irony.”
The battle has only just begun.
Over the next few years there will be a huge push for subscribers.
Providing video will simply be the admittance ticket.
They will have to offer a rich set of offerings and…aggressive pricing.
As Cypher said…” It means buckle up your seatbelt, Dorothy, ‘cause Kansas is going bye-bye.”
Today, the Internet is the place to see and be seen. Even if you’re a nobody you can be seen.
Certainly Tellywood is jumping on the bandwagon if only out of defense. But it is the indies who have the potential and the power to change the control structure (and heck even make some money along the way).
The potential numbers look good.
The margins look good.
The profits look good.
Of course initially the picture quality is only just passably good…not great.
That’s understandable – and acceptable – at this stage in the technology’s growth.
There are a whole new set of technical issues to be worked out. Like:
- high-def versions of H.264, VC-1, MPEG-4, DivX, JPEG
- correcting jaggies, judder, motion blur
- our beloved DRM
Internet video has a huge upside. But it comes with a risk to the content owners cannibalizing their present revenue streams. And for the next few years they will simply try to survive in The Matrix.
There will be ad-based, subscription-based and all-you-can-eat buffet services.
Not surprisingly lots of folks – content owners, aggregators and ISPs -- like the ad-based approach. Folks like Google and Yahoo are getting ad folks trained in the 1-1 online advertising model. Last year it accounted for about $13 billion or 4.6% of the total media advertising. By 2009 it is projected to be $22.3 billion or 7.5% of the total.
That’s not chump change !!!
Add that to Tellywood’s grand scheme of rent-not-to-own video and it will change the industry … dramatically.
Of course there are a few obstacles like lawyers…new definitions of IP…ancient laws…lawyers.
Tellywood obviously wants to maintain it’s strangle hold over content rentals.
The online video sites are getting personal and indie content – some ultra bad, some mediocre, some pretty darned good – from everywhere.
Sites like MySpace Videos, Yahoo! Video Search, MSN Video Search, Google Video Search, AOL Video and …oh yeah YouTube are already gaining huge audiences. Even lowly Grouper, which Sony just bought, showed a traffic increase of 1,678% in the first six months of the year according to Hitwise.
They prove that creativity doesn’t just reside in Tellywood and folks have a wide range of interest levels (commonly referred to as Chris Andersen’s Long Tail view of tomorrow).
Loosely translated consumers may be able to tell Tellywood…Our way…or the highway.
#############
IPTV Who Will Make Money Off The Matrix - To learn more about this author, visit Andy Marken's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
|||
George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Andy's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
 |
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Testing and Measuring Residual Income 10 Questions for your sales rep Managing the Unimaginable Universal Search |
|
 | ||
 |
Top 50 Blogs For Startups
Top Blogs To Watch In 2008 | |
 |
Top 50 Debt Blogs
Learn To Get Out Of Debt | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
