Telco TV: On-demand key to new video services

ORLANDO—If telephone companies want to be successful in the video business, they must be focused on the evolving changes in viewer behavior and their growing preference for service on demand, according to several speakers at the opening session of Telco TV here.

Jim White, vice president of marketing for Alcatel’s Broadband Networking Division, said the mass market has devolved into a group of tribes and most consumers want services that fit their specific profile. Driving the change to a large extent has been the development of digital video recorders that let users choose what to watch on their own schedules.

"The expectation that you as a service provider know something about them and provide them something unique is rising," White said in his keynote address. "One of the key things that we all recognize as a significant milestone or maybe it’s a red flag is the advent of the DVR."

Just as important as offering on-demand services, carriers also must take a wider view of the market than simply passive viewers sitting on a couch.

"It’s about the things we do not use just in our house," he said. "We want everything we have in our house everywhere on every device. You have to reach people everywhere. You don’t know where these little tribes are going to be located."

Early results show new on-demand services by traditional cable operators are proving very successful, said Yvette Kanouff, corporate vice president of strategic planning for SeaChange International. The NFL Network, for example, received more than 600,000 requests for a 15-minute highlight show during its debut week, she said.

For telcos and program guide vendors, the key is focusing on user behavior and their desire for on-demand content.

"It very different from just Hollywood content," she said. "You have to pay attention to the way people browse for information. If you don’t focus on that to start, I guarantee you will be focused on it at some point in the future."