IPTV in the USA and UK: What’s Next for the Industry

1.Introduction to IPTV

IPTV, also known as Internet Protocol Television, is becoming progressively more influential within the media industry. Unlike traditional TV broadcasting methods that use costly and primarily proprietary broadcasting technologies, IPTV is streamed over broadband networks by using the same Internet Protocol (IP) that serves millions of home computers on the modern Internet. The concept that the same on-demand migration is forthcoming for the era of multiscreen TV consumption has already grabbed the attention of numerous stakeholders in technology integration and future potential.

Viewers have now started to watch TV programs and other video entertainment in a variety of locations and on multiple platforms such as mobile phones, desktops, laptops, PDAs, and additional tools, in addition to traditional TV sets. IPTV is still in its early stages as a service. It is undergoing significant growth, and various business models are taking shape that could foster its expansion.

Some assert that economical content creation will likely be the first type of media creation to dominate compact displays and explore long-tail strategies. Operating on the economic aspect of the TV broadcasting pipeline, the current state of IPTV hosting or service, on the other hand, has several notable strengths over its rival broadcast technologies. They include crystal-clear visuals, on-demand viewing, DVR functionality, communication features, internet access, and immediate technical assistance via alternate wireless communication paths such as mobile phones, PDAs, global communication devices, etc.

For IPTV hosting to operate effectively, however, the networking edge devices, the core switch, and the IPTV server consisting of media encoders and server blade assemblies have to interoperate properly. Multiple regional and national hosting facilities must be highly reliable or else the signal quality deteriorates, shows could disappear and are not saved, communication halts, the screen goes blank, the sound becomes choppy, and the shows and services will not work well.

This text will examine the competitive environment for IPTV services in the United Kingdom and the United States. Through such a detailed comparison, a range of meaningful public policy considerations across various critical topics can be uncovered.

2.Media Regulation in the UK and the US

According to legal principles and the related academic discourse, the choice of the regulation strategy and the nuances of the framework depend on perspectives on the marketplace. The regulation of media involves competition policy, media proprietary structures, consumer rights, and the defense of sensitive demographics.

Therefore, if market regulation is the objective, we must comprehend what defines the media market landscape. Whether it is about ownership restrictions, market competition assessments, consumer safeguards, or media content for children, the regulator has to understand these sectors; which media markets are growing at a fast pace, where we have competition, vertical consolidation, and ownership crossing media sectors, and which media markets are struggling competitively and ready for innovative approaches of key participants.

Put simply, the current media market environment has always evolved to become more fluid, and only if we reflect on the policymakers can we identify future trends.

The growth of IPTV on a global scale normalizes us to its dissemination. By combining standard TV features with innovative ones such as technology-driven interactive options, IPTV has the potential to be a significant element in boosting remote area viability. If so, will this be sufficient for the regulator to adapt its strategy?

We have no data that IPTV has an additional appeal to the people who do not subscribe to cable or DTH. However, a number of recent changes have slowed down IPTV's growth – and it is these developments that have led to tempering predictions on IPTV growth.

Meanwhile, the UK adopted a flexible policy framework and a forward-thinking collaboration with the industry.

3.Market Leaders and Distribution

In the British market, BT is the key player in the UK IPTV market with a market share of 1.18%, and YouView has a market share of 2.8%, which is the landscape of single and dual-play offerings. BT is typically the leader in the UK as per reports, although it varies marginally over time across the 7 to 9 percent bracket.

In the United Kingdom, Virgin Media was the pioneer in launching IPTV using hybrid fiber-coaxial technology, with BT entering later. Netflix and Amazon Prime are the dominant streaming providers in the UK IPTV market. Amazon has its own set-top device-centered platform called Amazon Fire TV, akin to Roku, and has just entered the UK. However, Netflix and Amazon are not available in any telecommunications provider networks.

In the American market, AT&T leads the charts with a 17.31% stake, surpassing Verizon’s FiOS at 16.88 percent. However, considering only DSL-based IPTV services, the leader is CenturyLink, followed by AT&T and Frontier, and Lumen.

Cable TV has the majority hold of the American market, with AT&T managing to attract 16.5 million IPTV customers, largely through its U-verse service and DirecTV service, which also is active in the Latin American market. The US market is, therefore, segmented between the major legacy telecom firms offering IPTV services and emerging internet-based firms.

In these regions, leading companies offer integrated service packages or a loyal customer strategy for the majority of their marketing, promoting multi-play options. In the United States, AT&T, Verizon, and Lumen depend on their proprietary infrastructure or traditional telephone infrastructure to deliver IPTV solutions, albeit on a smaller scale.

4.Subscription Types and Media Content

There are distinct aspects in the content offerings in the UK and US IPTV markets. The range of available IPTV Services in the UK programming includes live broadcasts from national and regional networks, programming available on demand, pre-recorded shows, and original shows like TV shows or movies only available through that service that could not be bought on video or aired outside the platform.

The UK services offer traditional rankings of channels comparable with the UK cable platforms. They also include medium-tier bundles that contain important paid channels. Content is organized not just by taste, but by medium: terrestrial, satellite, Freeview, and BT Vision VOD.

The primary distinctions for the IPTV market are the payment structures in the form of static plans versus the more customizable channel-by-channel option. UK IPTV subscribers can choose additional bundles as their viewing tastes change, while these channels will be pre-selected in the US, in line with a user’s initial fixed-term agreement.

Content collaborations reflect the distinct policy environments for media markets in the US and UK. The trend of reduced exclusivity periods and the evolving industry has notable effects, the most direct being the market role of the UK’s leading IPTV provider.

Although a recent newcomer to the crowded and competitive UK TV sector, Setanta is positioned to gain significant traction through appearing cutting-edge and having the turn of the globe’s highest-profile rights. The strength of the brands plays an essential role, alongside a product that has a competitive price point and provides the influential UK club football fans with an appealing supplementary option.

5.Emerging Technologies and Upcoming Innovations

5G networks, combined with millions of IoT devices, have transformed IPTV development with the introduction of AI and machine learning. Cloud computing is strongly supporting AI systems to unlock novel functionalities. Proprietary AI recommendation systems are increasingly being implemented by streaming services to engage viewers with their own distinctive features. The video industry has been enhanced with a fresh wave of innovation.

A larger video bitrate, either through resolution or frame rate advancements, has been a primary focus in improving user experience and expanding subscriber bases. The advancements in recent years were driven by new standards developed by industry stakeholders.

Several proprietary software stacks with a compact size are nearing release. Rather than pushing for new features, such software stacks would allow video delivery services to optimize performance to further refine viewer interactions. This paradigm, like the previous ones, hinged on customer perception and their expectation of worth.

In the near future, as rapid tech uptake creates a balanced competitive environment in audience engagement and industry growth levels out, we foresee a service-lean technology market scenario to keep elderly income groups interested.

We emphasize a couple of critical aspects below for both IPTV markets.

1. All the major stakeholders may contribute to the next phase in media engagement by turning passive content into interactive, immersive content.

2. We see immersive technologies as the primary forces behind the rising trends for these domains.

The constantly changing audience mindset puts information at the forefront for every stakeholder. Legal boundaries would restrict unrestricted availability to user information; hence, data privacy and protection laws would likely resist new technologies that may risk consumer security. However, the existing VOD ecosystem suggests otherwise.

The IT security score is presently at an all-time low. Technological advances have made cyber breaches more virtual than a job done hand-to-hand, thereby benefiting digital fraudsters at a greater extent than black-collar culprits.

With the advent of centralized broadcasting systems, demand for IPTV has been increasing rapidly. Depending on user demands, these developments in technology are going to change the face of IPTV.

References:

Bae, H. W. and Kim, D. H. "A Study of Factors affecting subscription to IPTV Service." JBE (2023). kibme.org

Baea, H. W. and Kima, D. H. "A Study about Moderating Effect of Age on The IPTV Service Subscription Intention." JBE (2024). kibme.org

Cho, T., Cho, T., and Zhang, H. "The Relationship between the Service Quality of IPTV Home Training and Consumers' Exercise Satisfaction and Continuous Use during the COVID-19 Pandemic." Businesses (2023). mdpi.com

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