Content takes center stage at TelcoTV

For a segment of the industry that only recently has become comfortable with the technology, the TelcoTV show in Orlando has quickly evolved into a forum where vendors’ and carriers’ chief concern has become the content and applications being transmitted over broadband networks.

Most carriers have recognized that they must get into the video business and with something that doesn’t resemble cable TV, according to those at the show. And while the Microsoft/SBC alliance served as validation of the market for many, exhibitors appear to be lining up behind on-demand services and some form of interactivity as the biggest differentiators for telcos.

Francisca Mari, director of marketing and iTV services for FastWeb, a competitive carrier in Italy that many point to as a model for U.S. carriers, said interactivity is key to drawing users but that the market shouldn’t expect it to be a silver bullet.

“The average time spent in front of the television didn’t change when we started offering interactivity,” she said. “But what we found was that [customers] wanted to watch something different than just the terrestrial satellite networks, and they were willing to pay for it.”

Early tests of telco video service, however, have not necessarily pinpointed the content formula; though many vendors believe video-on-demand (VOD) is one of the key elements. VOD elements, in fact, were among the most visible product offerings on the show floor.

“We believe one of the ways to succeed is by demographically focusing the content,” said Yvonne Robinson, director of marketing communications for Espial, a software vendor that is providing the browser for Belgacom’s high-profile video service. “The content is really coming from a bunch of different places, but you have to build it for the TV experience.”

VOD also is attracting some new companies into the fray. Videolocity, a Park City, Utah-based company that has been serving the hotel industry for the past several years, was on the show floor demonstrating its turnkey solution that includes movies and music on demand. The company is hoping to partner with a larger vendor and will offer its service to carriers as a sort of outsource VOD package.

“We’re willing to listen to any of the big boys when it comes to licensing,” said Dan Driscoll, head of business development for the company.