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Transforming IPTV from “Me too” to “Me want!”

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By jumping off of the “we do what they do” bandwagon, amazing things can happen. One example is PCCW, which became the largest seller of brick-and-mortar movie tickets in Hong Kong. Subscribers can browse and select the movie they want to see, purchase tickets with their TV remote, and send the tickets to their wireless phones in the form of a barcode. Once at the theater, their phone’s display is scanned to validate the ticket, and they’re admitted to the theater. PCCW could make this system work because they offer both IPTV and mobile services; a cable or satellite operator without full access to a mobile network will always be at a disadvantage.

Another example is caller ID. One study conducted by Comporium Communications, an independent Telco in South Carolina, published by applications vendor Integra5, found that 25% of its subscribers take the operator’s digital TV service because of caller ID, and that 90% of them were willing to pay extra for it. Caller ID has also generated strong interest in “click-to-call” from directories, call-logs and voicemail-logs that can appear on the TV or the PC. Comporium isn’t alone; many operators in the US and worldwide are beginning to commercialize applications that span across disparate service platforms, made possible through systems integration and service delivery platforms. Yet another example is Remote PVR, where subscribers who forgot to program the set-top box at home can do so using a mobile phone.

In summary, operators can take the easy road, fixating on immediate local competitors, resulting in a “me too, plus maybe a few bells & whistles” service. But the better approach is to address real subscriber needs and preferences, be creative, and take advantage of the inherent interactive and convergent capabilities of your IPTV system. In that way, you’ll find yourself leading, rather than following, the competition.

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Len Feldman and Steve Hawley are the Principal Analysts of the IPTV analyst firm tvstrategies™.

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© 2012 Penton Media Inc.

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