Beruflich Dokumente
Kultur Dokumente
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
2
Index
Index ....................................................................................................................................................... 2
Abstract................................................................................................................................................... 3
Acknowledgements................................................................................................................................. 5
1. 1 Interactive TV: IPTV versus WebTV (walled garden vs. open garden) .................................. 11
2.1 The current position of IPTV on the diffusion curve ............................................................. 20
Appendices............................................................................................................................................ 43
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
3
Abstract
The
diffusion
process
of
IPTV
(as
opposed
to
Web
TV)
progresses
slower
than
most
who
are
involved
in
IPTV
expect
and/or
predicted.
For
our
master
thesis
at
the
MBA
Crossmedia
(Lemniscaat
School
of
Management)
we
decided
to
investigate
why
the
IPTV
diffusion
is
progressing
slower
than
we
expect
and
what
factors
are
influencing
this.
Because
we
expected
a
resemblance
to
the
diffusion
patterns
of
technological
innovations
like
VHS/BetaMax/V2000,
DVD-‐A/SACD
and
HD-‐DVD/Blu-‐ray,
which
were
settled
after
a
standards
war,
we
decided
to
focus
on
the
role
of
standards
in
the
diffusion
of
IPTV.
We
started
by
investigating
if
this
subject
had
already
been
studied
earlier,
but
could
not
find
anything
on
the
role
of
standards
with
regard
to
IPTV.
We
therefore
formulated
these
two
hypotheses
to
scope
down
our
research:
Hypothesis
1:
The
primary
reason
for
the
slow
adoption
of
interactive
TV
(and
therefore
IPTV)
by
consumers
is
the
lack
of
useful
content/applications/services
Hypothesis
2:
The
primary
reason
for
the
lack
of
useful
content/applications/services
for
IPTV
is
the
reluctance
of
publishers
to
provide/develop
such
content/applications/services
because
they
are
unaware
of
the
possibilities
and
held
back
by
the
technological
complexity,
the
plethora
of
(middleware)
platforms
and
the
absence
of
a
dominant
standard.
After
studying
relevant
theoretical
material,
we
found
a
lot
of
studies
regarding
technological
innovations
and
diffusion
patterns,
mainly
based
on
the
works
of
Everett
Rogers.
From
these
works
we
concluded
that
the
diffusion
curve
for
interactive
innovations
has
a
steeper
slope
than
those
of
other
innovations,
which
means
that
it
is
harder
to
reach
critical
mass,
but
the
adoption
rate
goes
quick
once
critical
mass
is
reached.
By
studying
the
number
and
growth
of
IPTV
subscribers
in
Western
Europe
since
2001,
we
verified
that
IPTV
is
still
in
the
early
stages
on
the
adoption
curve.
To
find
out
why,
we
conducted
an
online
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
4
survey
to
investigate
the
views
of
IPTV
related
companies
and
conducted
interviews
with
relevant
players
from
the
industry
and
publishing
companies.
In
our
survey
we
found
support
for
our
first
hypothesis:
consumers
regard
the
absence
of
relevant
content,
applications
and
services
as
the
main
factor
for
the
slow
adoption.
Of
course,
the
behavioral
change
that
is
needed
to
convert
the
TV
from
a
passive
medium
to
an
active
channel
also
plays
an
important
role
and
takes
time.
Our
findings
with
regard
to
the
second
hypothesis,
the
role
of
standardization,
were
less
supportive
of
our
hypothesis.
We
found
that
the
lack
of
a
valid
business
model
is
the
primary
reason
for
publishers
not
to
invest
in
content,
applications
and
services
for
IPTV.
Even
though
standardization
is
seen
as
an
important
factor
(bottleneck),
the
industry
shows
a
reluctance
to
standardize
the
(middleware)
platform
if
this
means
abandoning
past
investments
(sunk
cost)
or
strategic
alliances.
As
we
found
in
studies
regarding
adoption
curves
of
innovations,
a
disruptive
innovation
can
cause
a
radical
speedup
in
the
diffusion.
This
circumvents
the
(lack
of)
platform
standardization
by
shifting
towards
application-‐
or
service
standardization
due
to
customer
demand/expectations.
Our
hope
is
on
(low
interactive)
services
like
YouTube
integration,
Video
on
Demand
(including
“Uitzending
Gemist”)
and
remote
PVR
to
become
widely
accepted.
This
will
at
least
provide
the
(broad)
infrastructure
for
interactive
services,
so
new
applications
and
services
can
emerge.
Amongst
them
may
be
new
breakthrough
innovations
that
accelerate
the
diffusion
of
(real)
IPTV.
Based
on
our
research
findings
we
feel
that
a
quick
breakthrough
of
IPTV
in
the
near
future
is
not
very
likely.
We
expect
WebTV,
which
is
less
affected
by
the
factors
we
found,
to
have
a
better
chance
of
conquering
our
living
rooms.
The
openness
and
less
restrictiveness
of
WebTV
may
result
in
different
(unanticipated?)
use
of
the
technology,
which
could
lead
to
more
disruptive
applications
and
services
for
interactive
TV.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
5
Acknowledgements
A
lot
of
people
have
contributed
to
this
master
thesis.
Our
special
thanks
goes
out
to
our
supervisor
Erik
Huizer,
professor
at
the
University
of
Utrecht
and
professor
Steef
Peters
of
the
Lemniscaat
School
of
Management.
Of
course
we
would
also
like
to
thank
our
partners
Annelou
Aalders
and
Dorien
Turk
for
their
great
support
and
patience.
Gartner
LinkedIn groups
Annelou Aalders
Dorien Turk
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
6
Research
project
Research objectives
The
diffusion
process
of
IPTV
(as
opposed
to
WebTV)
progresses
slower
than
most
who
are
involved
in
IPTV
expect
and/or
predicted
(IDC
press
release
“European
Telcos
Become
Entertainment
Providers
Through
Launch
of
IPTV
Services”,
2005;
iSuppli
predicted
in
August
2006
that
global
IPTV
subscribers
would
grow
to
slightly
more
than
63
million
in
2010
(compound
annual
growth
rate
of
92.1%),
while
the
Multimedia
Research
Group
forecast
in
October
2006
that
global
IPTV
subscribers
would
grow
from
4.3
million
in
2005
to
36.8
million
in
2009
and
to
50.5
million
in
2010.
In
Western
Europe,
Gartner
(April
2006)
forecast
that
the
IPTV
subscriber
market
would
reach
3.3
million
subscribers
in
2006
and
16.7
million
in
2010.)
In
reality,
we
found
all
these
forecasts
to
be
optimistic
(chapter
xx).
For
our
master
thesis
at
the
MBA
Crossmedia
(Lemniscaat
School
of
Management)
we
decided
to
investigate
why
the
IPTV
diffusion
is
progressing
slower
than
we
expect
and
what
factors
are
influencing
this.
Because
we
expected
a
resemblance
to
the
diffusion
patterns
of
technological
innovations
like
VHS/BetaMax/V2000,
DVD-‐A/SACD
and
HD-‐DVD/Blu-‐ray,
which
were
settled
after
a
standards
war,
we
decided
to
focus
on
the
role
of
standards
in
the
diffusion
of
IPTV.
We
started
our
research
from
the
consumers
(end-‐users)
point
of
view.
Our
guess
was
that
the
lack
of
adoption
(besides
the
lack
of
knowledge
of
the
technology
and
its
applications
in
general)
was
due
to
the
lack
of
useful
applications
and
services that
are
generally
provided
by
publishers.
These
publishers
however
are
reluctant
to
invest
in
IPTV,
either
because
they
do
not
know
(enough)
about
the
existence
and
possibilities
of
IPTV
in
general,
or
are
held
back
because
of
the
scattered
(fragmented)
landscape
of
platforms
for
which
they
have
to
develop
their
applications
and
services.
We
started
this
research
because
we
strongly
felt
that
there
is
a
distinct
correlation
between
the
adoption
rate
of
IPTV
(by
consumers),
the
content,
applications
and
services
that
are
being
exposed
(by
publishers)
and
the
absence
of
a
dominant
platform
standard
(used
by
telco’s
and
cable
companies).
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
7
In other words:
We
were
strengthened
in
this
hypothesis
by
looking
at
similar
struggles
in
neighboring
fields
like
video
standards
(VHS,
Betamax,
V2000),
HD
audio
(Super
Audio
CD,
HDCD,
DVD-‐Audio),
mobile
communications
(NMT,
GSM)
and
HD
video
(HD-‐DVD,
Blu-‐ray
DVD).
Typically
in
these
cases,
technological
companies
start
by
introducing
rival
technologies,
hoping
to
set
the
standard,
thereby
sending
out
a
mixed
message
(doubt)
to
other
companies
and
end
users,
resulting
in
reluctance
to
adopt
by
other
companies
in
the
chain
and
consumers
in
particular.
In
these
examples
critical
mass
was
not
reached
until
the
“standards
war”
was
decided
on.
General
acceptance
however
accelerated
quickly
after
a
standard
became
dominant.
Prior
to
our
research,
having
peeked
at
some
of
the
possibilities
IPTV
can
offer
as
part
of
the
media-‐
channels
that
we
have
at
our
grasp,
we
had
a
hunch
that
the
technical
possibilities
might
be
limiting
the
progress.
After
diving
in
some
more,
we
found
that
the
technology,
in
general,
is
ready,
but
the
landscape
is
scattered
with
proprietary
solutions,
platforms,
semi-‐standards
etc.
In
our
study
we
investigated
how
players
in
the
IPTV-‐
or
IPTV-‐related
industries
are
looking
at
this
situation
and
if
they
are
willing
to
comply
to
facilitate
faster
growth.
For our research, we broke the general hypothesis down into two parts:
Hypothesis
1:
The
primary
reason
for
the
slow
adoption
of
interactive
TV
(and
therefore
IPTV)
by
consumers
is
the
lack
of
useful
content/applications/services
Hypothesis
2:
The
primary
reason
for
the
lack
of
useful
content/applications/services
for
IPTV
is
the
reluctance
of
publishers
to
provide/develop
such
content/applications/services
because
they
are
unaware
of
the
possibilities
and
held
back
by
the
technological
complexity,
the
plethora
of
(middleware)
platforms
and
the
absence
of
a
dominant
standard.
Our
main
goal
is
to
explore,
investigate
and
draw
conclusions
on
the
role
of
standards
in
the
diffusion
process
of
IPTV
in
Western
Europe.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
8
Relevance
The
results
of
our
research
are
of
importance
to
stakeholders
involved
in
the
IPTV
area,
ranging
from
telecommunications
companies,
broadcasters,
content
production
companies
and
publishers.
Much
money
is
lost
if
a
technology
fails
to
see
success.
Even
more
money
is
lost
in
the
battle
for
setting
a
standard.
Several
respondents
to
our
survey
and
the
participants
in
our
interviews
have
expressed
their
interest
in
our
findings.
In
addition
to
investigating
the
relationship
between
(the
lack
of)
standards
and
the
speed
of
diffusion,
we
also
provide
suggestions
that
could
help
speed
up
the
adoption
process.
Approach
-‐ Literature study on the diffusion process of (interactive) innovations
-‐ Estimate
the
current
position
of
the
IPTV
diffusion
on
the
diffusion
curve
by
researching
the
curve
and
comparing
to
similar
technology
diffusion
curves
-‐ Use
the
Technology
Acceptance
Model
(TAM)
and
the
research
of
Baaren
et
al
(Baaren
et
al,
2009)
regarding
the
underlying
factors
which
lead
to
Perceived
Usefulness
(PU)
and
Perceived
Ease
of
Use
(PEOU)
to
find
out
which
factors
influence
the
diffusion
process
of
IPTV
o the view of market players on the role of standards
o the
intentions
(strategy)
of
market
players
in
the
coming
years
with
regard
to
standardization
(willingness
to
comply)
o Gain insight in their views on the status of IPTV
o Gain insight in their opinion with regard to the role of standards
-‐ Analyze the results to test whether they support our hypotheses
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
9
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
10
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
11
1.
1
Interactive
TV:
IPTV
versus
WebTV
(walled
garden
vs.
open
garden)
IPTV
is
a
form
of
interactive
television.
Interactive
television
is
a
technology
where
television
(one-‐
way,
broadcast)
is
extended
with
interactive
features
(e.g.
video
on
demand,
respond
to
events
on
television
etc),
creating
a
two-‐way
link
for
communication
and
thereby
opening
a
whole
new
range
of
possibilities
for
new
content,
applications
and
services.
Although
we
cannot
oversee
the
full
spectrum
of
possibilities
that
interactive
TV
has
to
offer,
some
of
the
most
obvious
applications
are
already
available
for
use.
Interactive
TV
can
either
be
delivered
via
Digital
Video
Broadcasting
(DVB)
or
via
the
Internet
Protocol
(IP).
There
are
generally
two
types
of
IP-‐based
interactive
television,
IPTV
and
WebTV
(or
Internet
TV).
This
paper
focuses
on
IPTV
as
opposed
to
WebTV.
While
both
technologies
are
similar
in
many
aspects
(both
generally
use
the
IP
protocol,
are
digital,
offer
interaction
possibilities
between
user
and
broadcaster),
they
differ
in
accessibility
[Cooper
&
Lovelace,
2006].
IPTV
requires
a
set-‐top
box,
a
subscription
to
an
IPTV
provider,
and
is
generally
distributed
over
a
private
network
in
a
distributer-‐managed
(walled
garden)
environment,
offering
a
high
quality
of
service.
WebTV
on
the
other
hand
is
distributed
over
the
public
Internet
(open
garden),
trying
to
reach
a
global
audience
on
a
best
effort
basis.
Both
are
part
of
the
evolution
of
TV
viewing
in
general
and
the
technological
advancements
in
that
area.
The
similarities
between
the
two
approaches
show
signs
of
a
convergence
in
media
channels
and
consumption
patterns.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
12
Contrary
to
DVB-‐based
standards
for
interactive
TV,
IPTV
is
not
standardized.
This
results
in
the
absence
of
well-‐defined
objective
norms
for
compression,
transfer
rates
and
other
facets
that
determine
the
quality
of
service.
On
the
other
side,
use
of
the
IP
protocol,
next
to
offering
a
return
path,
opens
opportunities
for
integration
with
other
IP-‐based
services.
The
technical
possibilities
of
IPTV
make
a
wide
range
of
applications
possible,
ranging
from
(low
interactive)
applications
and
services
like
Content
on
Demand
(the
daily
news
on
your
TV,
an
interactive
Electronic
Program
Guide,
web
browsing
on
your
TV
etc),
Video
on
Demand
(You
Tube,
Rent-‐A-‐Video),
Personal
Video
Recorder
(PVR)
facilities,
to
a
(fully
interactive)
TV
quiz
where
viewers
can
participate
using
their
remote
control
and
much
more.
The
current
IPTV
offering
of
applications
and
services
is
still
limited.
Most
television
companies
start
their
offering
with
plain
Content
on
Demand
and
low
interactive
applications
and
services
like
Video
on
Demand
and
PVR-‐functionality.
We
believe
this
is
mainly
because
of
the
standardized
solutions
for
this
functionality
provided
out
of
the
box
by
the
platform
providers,
but
this
is
ground
for
further
studies.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
13
The
evolution
of
television
is
a
complex
process
that
involves
many
players
with
different
backgrounds.
They
have
made
contributions
to
make
television
what
it
is
today:
the
most
popular
mass
medium
in
the
world.
For
the
purpose
of
this
thesis
we
have
simplified
this
process.
We
distinguish
5
phases
in
the
history
of
television.
1. The
first
television
broadcasts
2. The
switch
from
black
&
white
to
color
television
3. From
4:3
to
widescreen
4. From
Standard
Definition
(SD)
to
High
Definition
(HD)
5. From
non-‐interactive
to
interactive
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
14
In
the
past
90
years
television
has
come
a
long
way:
from
the
poor
picture
quality
in
black
&
white
in
the
beginning
of
the
20th
century,
to
the
high
definition
television
with
the
possibility
of
interactivity
now.
One
of
the
most
important
turning
points
in
this
history
was
of
course
the
first
television
broadcasts
in
the
1920’s.
The
introduction
of
color
television
–
technically
first
possible
in
the
1940’s
with
mass
introduction
in
the
1960’s
–
was
another
pivotal
moment.
The
transition
from
4:3
aspect
ratio
to
widescreen
television
was
the
next
big
step.
This
transition
started
in
the
1980’s,
but
is
a
process
still
going
on
today.
In
The
Netherlands
for
instance,
widescreen
was
introduced
in
2007.
Many
other
viewers
in
the
world
still
watch
in
4:3.
The
introduction
of
High
Definition
television
in
the
1990’s
is
one
of
the
most
recent
developments.
HD
was
analogue
at
first,
digital
HD
surfaced
after
2000.
The
introduction
of
HD
has
had
a
big
impact
on
both
broadcast
television
as
well
as
storage
devices
as
DVD.
But
while
the
transition
to
High
Definition
has
just
started
and
is
still
going
on,
another
significant
step
has
been
made.
Up
till
now
television
has
been
mostly
non-‐interactive.
The
use
of
the
remote
control
was
up
till
recent
the
most
interactive
part
of
watching
television.
But
with
the
introduction
of
IPTV
and
the
possibility
of
real
interaction
with
viewers,
this
has
changed
dramatically.
As
IPTV
spreads
television
makers
and
viewers
are
gradually
discovering
the
possibilities
of
interactive
television,
such
as
video
on
demand.
We
won’t
elaborate
further
on
the
breakthroughs
that
have
been
made
through
the
years
in
the
distribution
of
television
and
the
picture
quality.
But
it
is
clear
that
television
has
evolved
enormously
through
the
years.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
15
There
are
different
approaches
in
defining
the
value
chain
in
a
particular
market.
Ricardo
Murer
says
in
‘The
IPTV
Value
Chain
(April
2008):
“The
value
chain
can
be
defined
as
a
number
of
organizations,
resources
and
specific
knowledge,
all
connected
and
involved
in
creating
and
delivering
value
to
final
customers.
The
value
chain,
also
involves
production
and
sales
cycles,
as
well
as
suppliers
of
the
most
diverse
and
different
sectors
such
as
logistics
companies
involved
in
the
distribution
of
products
for
a
network
of
stores”.
So,
at
first
glance
the
value
chain
of
IPTV
seems
very
complicated.
But
after
closer
inspection,
all
involved
actors
in
the
value
chain
can
be
categorized
in
three
domains.
One
the
one
hand
there
are
the
content
providers.
The
companies
that
provide
distribution
for
IPTV
are
the
other
main
category
in
the
value
chain.
Finally,
there
are
the
customers
who
have
the
possibility
to
interact
with
both
distributors
as
content
providers.
We
have
found
that
a
much-‐used
model
developed
by
Michael
Porter
suits
our
research
objectives.
First
of
all
the
model
is
relatively
simple.
Furthermore,
the
general
value
system
of
Porter
can
be
easily
applied
to
the
IPTV
value
chain.
The
producer
is
a
supplier
of
content
towards
the
broadcaster
and
the
distributor
who,
via
their
channels
is
able
to
buy
and
receive
the
content
(P.
Deumer,
Internet
TV
&
the
Dutch
broadcast
value
chain,
November
2008).
Single
Industry
Value
Chain
Generally
speaking,
one
company
is
not
able
to
bring
a
product
to
the
market
all
by
itself.
In
"Competitive
Advantage"
(1985)
Michael
Porter
describes
a
general
value
system
made
up
by
a
supplier,
a
channel
and
a
buyer.
This
‘Single
Industry
Value
System’
can
also
be
applied
to
IPTV.
At
first
glance
the
IPTV
value
chain
looks
rather
complicated.
Many
different
actors
have
a
role.
There
are
of
course
the
telecom
operators
and
cable
TV
operators.
But
also
Internet
portals
play
a
role,
and
so
do
content
providers,
telecom
equipment
suppliers,
middleware
software
providers,
advertising
agencies
and
last
but
not
least
consumers.
The
value
chain
and
business
model
of
IPTV
is
quite
different
from
the
value
chain
of
traditional
broadcast
television
and
it
would
be
a
mistake
to
regard
IPTV
as
just
TV.
IPTV
uses
the
consumption
experience
of
TV,
but
is
actually
something
quite
different.
The
value
chain
and
business
model
of
IPTV
is
actually
a
combination
of
4
mature
models
already
in
place
in
the
market:
TV,
IP,
Telecom
and
Digital
Media.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
16
Roles
In
essence
there
are
four
roles
to
be
distinguished
in
the
IPTV
value
chain.
That
of
content
provider
(the
supplier
in
Porter’s
model),
the
service
provider
and
network
provider
(the
channel),
and
the
consumer
(the
buyer).
(
Source:
‘Global
Standards
of
IPTV
and
its
infrastructural
framework’,
presentation
by
Chae
Sub
Lee,
Telecommunications
Technology
Association
of
Korea)
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
17
European
Market
There’s
no
doubt
that
Western
Europe
leads
the
world
in
IPTV
deployment.
But
as
in
the
rest
of
the
world,
there
are
big
regional
differences
in
Europe.
The
prediction
for
2009
(US
Research
firm
Strategy
Analytics)
is
that
the
number
of
households
with
IPTV
in
Western
Europe
will
grow
with
a
staggering
70%
from
10
million
at
the
end
of
2008
to
16,9
million
at
the
end
of
this
year.
France
is
leading
the
pack
in
Europe
by
a
big
margin:
6,2
million
French
households
had
IPTV
by
the
end
of
2008.
France
Researchers
in
the
industry
say
that
the
reason
for
the
strong
diffusion
of
IPTV
in
France
lies
in
the
strong
policy
of
the
regulatory
body.
That
has
been
policing
the
unbundling
of
local
loops
in
an
early
stage,
so
alternative
operators
could
offer
technologies
like
ADSL2+
without
having
to
rely
on
the
established
telco’s.
This
also
stimulated
strong
competition
in
fixed
phone
lines.
The
result
was
attractively
priced
triple-‐play
packages.
By
the
end
of
2008
France
had
6,2
million
households
with
access
to
IPTV-‐services.
Iliad,
which
trades
under
the
name
Free
in
France,
is
easily
the
largest
IPTV
provider
in
the
world
with
3,1
million
IPTV-‐
enabled
customers.
France
Telecom
reported
2,1
million
IPTV
subscribers
by
the
end
of
2008
and
Neuf
Cegetel
1
million
subscribers.
Spain
Telefonica
and
Jazztel
Spanish
cable
operator
ONO
has
a
predominantly
digital
subscriber
base
but
this
has
not
stopped
Telefonica
from
emerging
as
one
of
the
most
successful
incumbents
in
the
European
market.
With
more
than
600.000
subscribers,
it
is
the
second-‐biggest
incumbent
player
in
Europe.
Unlike
DT
that
delayed
its
IPTV
investment,
Telefonica
launched
its
Imagenio
IPTV
service
back
in
2004
and
got
early
success
in
a
country
where
there
was
not
significant
pay-‐TV
penetration.
Belgium
The
use
of
smart
programming
offers
has
also
been
behind
the
success
of
Belgacom’s
IPTV
service,
which
had
more
than
550,000
subscribers
in
Q1
2009.
Belgacom
has
been
able
to
secure
a
deal
with
Warner
Bros.
to
provide
selected
feature
film
titles
on
demand
at
the
same
time
as
they
are
released
to
DVD.
This
has
proved
to
be
a
key
driver
in
its
take-‐up
rates
in
Belgium.
Belgacom
has
had
more
success
in
the
southern
French-‐speaking
Walloon
region
because
of
the
lack
of
a
strong
cable
operator
in
this
region.
In
the
north
in
Flanders,
there
is
one
dominant
cable
operator
that
is
digitalizing
its
service.
United
Kingdom
Total
538.000
IPTV
households.
Tiscali
(100.000
households
Q4
2008),
Freewire
(reaches
40.000
students
in
the
UK),
BT
(398.000
households
Q4
2008).
IPTV
has
similarly
struggled
in
the
U.K.
where
the
presence
of
a
strong
pay-‐TV
operator,
News
Corporation’s
Sky
Television,
has
made
it
difficult
for
BT
or
any
other
player
to
gain
a
significant
market
position.
But
unlike
parts
of
mainland
Europe,
SkyTV
is
not
considered
a
utility
service
and
has
had
to
win
market
share
off
its
own
back.
In the late 1980s it was launched into a market with a limited number of free to air channels and no
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
18
pay-‐TV
and
gained
its
market
strength
through
the
1990’s
by
securing
key
football
rights.
Other
ISPs
are
also
offering
free
or
heavily
discounted
broadband
access,
which
lessens
the
appeal
of
BT’s
triple
play
package.
In
the
U.S.,
Verizon
executives
have
confirmed
it
is
the
attraction
of
high-‐speed
internet
rather
than
multi-‐channel
television
that
is
selling
subscribers
to
its
FiOS
service.
Another
key
handicap
for
IPTV
in
the
U.K.
is
the
low
access
speeds
on
its
core
networks.
BT
currently
uses
R-‐ADSL,
which
delivers
maximum
download
speeds
of
up
to
8
Mbs.
Although
there
are
now
plans
to
upgrade
to
ADSL2+
in
France,
ADSL2+
infrastructure
has
already
been
widely
deployed
and
major
operators
are
starting
to
roll-‐out
fiber
in
the
major
cities.
Germany
By
the
end
of
2008
there
were
536.000
households
with
IPTV
in
Germany.
But
the
forecasts
are
that
this
number
will
grow
sharply
in
the
coming
years
to
1,2
million
households
by
the
end
of
2009
and
1,8
million
by
the
end
of
2010.
The
dynamic
take
up
of
IPTV
in
France
contrasts
with
Germany
where
Deutsche
Telecom
has
had
to
drop
its
prices
twice
in
an
attempt
to
kick
start
demand.
The
German
market
seems
to
be
very
price
sensitive
with
low
average
TV
ARPU
rates.
But
with
the
local
cable
system
still
very
much
analog
he
says
DT
has
a
“window
of
opportunity”
to
grow
its
market.
DT
cut
the
subscription
price
by
25
percent
last
year
and
re-‐branded
the
service
to
Entertain
IPTV.
Italy
Total
525.000
households.
Telecom
Italia
(Alice
with
325.000),
Fastweb
(200.000).
In
Italy,
despite
the
lack
of
a
cable
industry,
IPTV
has
struggled.
Telecom
Italia
added
111,000
IPTV
subscribers
in
Q4
2008,
giving
a
total
of
325.000
by
the
end
of
2008.
This
number
has
risen
to
365.000
at
the
end
of
Q1
2009.
Competitor
carrier
Fastweb
was
one
of
the
first
players
to
offer
IPTV,
but
until
recently
it
was
held
back
by
its
limited
reach
and
Italy’s
low
propensity
for
pay-‐TV
services.
It
has
only
200,000
subscribers
to
show
for
the
six-‐year-‐old
service.
Tiscali
started
with
IPTV
in
Italy
but
that
was
a
disaster.
Tiscali
discontinued
the
service
at
the
end
of
2008.
Netherlands
In
the
Netherlands
there
are
about
250.000
households
with
IPTV.
The
main
players
are
Tele2
(195.000
subscribers)
and
KPN
with
45.000
subscribers).
Also,
cable
company
Ziggo
has
recently
started
with
IPTV.
No
numbers
about
subscribers
are
available
yet.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
19
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
20
2.1
The
current
position
of
IPTV
on
the
diffusion
curve
Current situation
Although
the
number
of
subscribers
of
IPTV
has
been
growing
rapidly
the
last
years,
the
total
number
is
still
comparatively
small
to
the
total
number
of
TV-‐viewers
in
the
world
(22
million
vs
1.2
billion).
Almost
22
million
people
have
access
to
IPTV
in
the
last
quarter
of
2008,
according
to
the
most
recent
figures
that
were
published
during
the
World
IPTV
Forum
in
London
(research
Point
Topic).
The
numbers
show
that
the
North
American
IPTV
market
has
more
than
doubled
in
size
in
2008
–
with
growth
of
113
percent,
despite
the
global
economic
downturn.
IPTV
global
subscriber
totals
have
now
reached
21.8
million,
which
is
an
increase
of
63
percent
on
the
end
of
2007
figures.
Region 2007 Q4 Total 2008 Q4 Total
Africa
Source: Data provided for the Broadband Forum by Point Topic (www.point-topic.com)
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
21
Growth
A
recent
report
by
the
Multimedia
Research
Group
(may
2009)
is
forecasting
that
the
number
of
global
IPTV
subscribers
will
grow
from
26.7
million
in
2009
to
81
million
in
2013,
which
is
an
annual
growth
rate
of
32%.
(see
figure
below).
Revenues
In
terms
of
service
revenue,
the
Global
IPTV
market
is
worth
$6.7
billion
in
2009
(report
Multimedia
Research
Group)
and
growing
to
$19.9
billion
in
2013,
a
compound
annual
growth
rate
of
31%
(see
figure
below).
By
2013,
Europe
and
North
America
will
generate
a
larger
share
of
global
revenue,
due
to
very
low
Average
Revenues
Per
User
(ARPU)
in
China
and
India,
the
fastest
growing
markets
in
Asia.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
22
Diffusion
Since
the
introduction
in
various
countries
in
the
world
in
2002
IPTV
has
grown
fast.
In
2002
there
were
about
65.000
households
with
IPTV.
This
number
has
grown
to
almost
22
million
by
the
end
of
2008
(Point
Topic).
Still,
this
a
relative
small
number
compared
to
the
total
number
of
households
with
television
access
worldwide,
about
1,2
billion.
22
million
households
with
IPTV
is
not
more
than
1,75%
of
the
total
number
of
households
with
television.
It
seems
that
IPTV
has
still
a
long
way
to
go
to
become
a
mainstream
product.
There
are
many
problems
that
influence
the
diffusion
of
IPTV.
Despite
7
years
of
experience
with
IPTV
it’s
requirements
are
still
fragmented.
The
suppliers
of
technology,
such
as
Microsoft,
are
even
today
struggling
to
find
sizeable
customers
to
which
they
can
sell
their
products.
The
market
for
IPTV
is
geographically
fragmented
by
deployment
type
(cable,
satellite
or
terrestrial)
and
by
regional
differences
in
digital-‐TV
requirements.
Available
bandwidth
and
data
rates
also
vary
among
broadband
infrastructures.
And
last
but
not
least:
the
scalability
and
management
of
content,
billing
and
customer
systems
are
also
of
concern
and
form
an
obstacle
for
the
diffusion.
These
factors
also
apply
to
other
distribution
systems
as
cable,
satellite
and
terrestrial
broadcast,
with
a
big
exception.
They
are
all
systems
for
‘one-‐to-‐many’,
one
way
broadcast
distribution,
while
IPTV
is
‘one-‐to-‐one’
and
provides
a
return
path.
This
makes
the
diffusion
of
IPTV
much
more
complex.
In
this
regard,
The
diffusion
of
IPTV
is
in
the
early
stages.
With
almost
22
million
subscribers
worldwide,
IPTV
is
still
at
the
beginning
of
the
S-‐curve.
Reaching
critical
mass
seems
far
away.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
23
To
find
out
what
influences
the
diffusion
of
IPTV
we
researched
the
works
of
Everett
Rogers
on
the
diffusion
process,
and
specifically
the
diffusion
curve
for
interactive
innovations.
“Interactive
innovations
are
distinctive
in
that
their
adoption
depends
on
the
perceived
number
of
others
who
have
already
adopted
the
innovation.
Thus
their
rate
of
adoption
does
not
take
off
in
the
familiar
“S”
shape
until
a
critical
mass
of
adopters
has
been
reached.”
[The
diffusion
of
interactive
communication
innovations
and
the
critical
mass:
the
adoption
of
telecommunications
services
by
German
banks,
Mahler
&
Rogers,
1999]
As
Mahler
&
Rogers
conclude,
the
curve
for
interactive
communication
innovations
displays
a
stronger
curved
line,
putting
(even)
more
emphasis
on
reaching
critical
mass,
but
resulting
in
a
sharper
uprise
once
critical
mass
is
reached.
Not (ever) reaching critical mass often leads to end-‐of-‐life for the innovation (e.g. CD-‐i).
To
investigate
how
the
curve
evolves
for
IPTV
and
what
factors
influence
the
adoption,
we
will
make
use
of
the
TAM-‐model
and
the
research
of
Van
Baaren
et
al
into
underlying
factors
that
lead
to
PU
or
PEOU.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
24
To
investigate
the
process
towards
reaching
critical
mass
we
found
that
the
Technology
Acceptance
Model
(TAM)
(Davis,
1989)
gives
insight
into
how
likely
the
attitude
towards
adoption
of
IPTV
is.
The
TAM
model
states
that
the
likelihood
for
adopting
a
certain
technology
is
determined
by
two
factors:
perceived
usefulness
(PU)
and
perceived
ease
of
use
(PEOU).
Perceived usefulness
Awareness
2 -‐ Marketing
2 – Marketing
We
used
these
factors
in
our
questionnaire,
on
which
we
based
our
survey
to
find
out
how
experts
in
the
field
weigh
these
factors
in
their
decisions
and
asked
the
key
players
in
the
interviews
about
their
viewpoints
with
regards
to
these
factors.
Although
the
TAM
gives
a
general
insight
into
the
likelihood
of
attitude
towards
adoption,
it
does
not
take
into
account
the
underlying
factors
that
lead
to
PU
and
PEOU
(Baaren
et
al,
2009).
As
Baaren
et
al
discovered,
to
further
explain
what
factors
help
or
hinder
the
adoption
process,
one
has
to
take
into
account
the
underlying
factors
for
attitude
towards
adoption:
• individual factors
o end-‐user
and
technology
match,
e.g.
knowledge,
visual
experience,
match
of
needs,
uses,
gratifications,
o partners, friends, relatives, peers (Venkatesh et. al. 2003, Quiring 2006),
In
our
research
on
IPTV
we
assume
that
IPTV
scores
low
on
most
individual
factors.
Consumers
hardly
know
of
its
existence,
the
visual
experience
is
still
very
rudimentary
and
the
match
of
needs,
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
25
uses
and
gratifications
is
still
low.
We
believe
this
is
due
to
the
lack
of
useful
applications
and
services
for
IPTV.
We
assume
that
the
absence
of
useful
services
and
applications
is
caused
by
the
reluctance
of
publishers
to
invest
in
this
technology.
In
our
research
we
will
investigate
this
reluctance
and
the
underlying
causes:
lack
of
knowledge,
absence
of
viable
(proven)
business
models,
complexity
regarding
the
intellectual
property
rights
(specifically
good
mechanisms
for
Digital
Rights
Management)
and
(as
we
believe
and
will
investigate
in
this
research),
the
lack
of
standardization
and
the
resulting
scattered
landscape
of
technological
platforms.
Although
behavior
and
the
visual
experience
also
play
a
role
in
the
diffusion
process,
we
will
not
go
deeply
into
these
factors.
On
the
contextual
factors
we
also
assume
IPTV
to
score
low
because
not
many
people
have
access
to
IPTV
or
knowledge
of
having
it
at
all.
There
has
not
been
much
marketing
or
attention
from
news
media
for
IPTV,
as
we
expect,
because
of
the
small
target
group
and
the
absence
of
relevant
content,
applications
and
services.
In
our
research
we
will
mainly
investigate
if
the
IPTV
providers
agree
on
our
assumptions
on
IPTV
adoption,
the
relation
with
the
standardization
process
(or
the
absence
thereof)
and
their
willingness
to
move
towards
a
more
standardized
technology
platform.
Behavioral fit
Next
to
technological
advancements,
a
change
in
user
interface
(experience)
and
behavior
(cultural
change)
is
required
for
the
adoption
of
IPTV.
Where
current
TV
viewing
is
generally
considered
to
be
a
“lean
back”
experience,
interactivity
is
typical
“lean
forward”
behavior.
In
this
context
“lean
back”
refers
to
the
lean
back
“couch
position”,
in
which
the
tv
viewer
(passively)
consumes
content
(programs)
that
is
being
broadcast.
It
is
specifically
meant
to
stipulate
that
tv
viewing
is
generally
considered
a
passive,
leisure-‐like
activity.
Lean
forward
hints
at
the
position
people
assume
while
working
on
a
computer
or
on
a
video
game,
in
other
words:
being
active.
The
shift
towards
the
use
of
IPTV
requires
at
least
a
shift
in
behavioral
patterns,
which
is
generally
a
slow
process.
Critics
of
television
often
point
out
that
the
nature
of
television
programs
encourages
passivity
[Casey
et
al,
2002].
It
is
often
thought
that
television
viewing
is
an
isolating,
anti-‐social
experience,
but
ethnographic
studies
(Lull,
1990)
have
shown
that
TV
and
other
mass
media,
rarely
mentioned
as
vital
forces
in
the
construction
or
maintenance
of
interpersonal
relations,
can
now
be
seen
to
play
central
roles
in
the
methods
which
families
and
other
social
units
employ
to
interact
normatively
-‐
Oehlberg
et
al,
2006.
According
to
Oehlberg
et
al,
this
passivity
could
be
explained,
at
least
in
part,
by
the
fact
that
the
television
set
tends
to
dominate
most
channels
of
communication
(both
audio
and
visual)
and,
as
such,
it
might
not
be
conducive
to
interactive
exchanges
between
audience
members.
However,
their
experiments
[Oehlberg
et
al,
2006]
revealed
that
television
viewers
are
quite
adept
at
communicating
with
each
other
during
a
show.
To
do
so,
they
rely
on
a
set
of
interaction
rules
that
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
26
allow
them
to
simultaneously
socialize
with
each
other
around
the
TV
and
maintain
the
flow
of
the
program
they
are
watching.
Where
the
distinction
between
“lean
forward”
and
“lean
back”
behavior
is
mainly
used
in
the
field
of
marketing,
scientific
research
usually
makes
a
distinction
based
on
the
distance
between
the
user
and
the
viewing
device.
As
shown
in
table
x,
different
media
are
used
for
different
purposes
with
regard
to
social
interaction
and
interactivity.
Breakthrough innovations
As
Carayannis
et
al
[Carayannis
et
al,
2003]
discovered,
cultural
change
does
take
a
long
time
unless
a
breakthrough
innovation,
which
drastically
changes
behavior,
pops
up.
It
is
not
the
technology
that
causes
the
behavioral
change
directly,
but
its
application.
There
are
several
applications
that
already
changed
our
(tv
related)
behavior
during
the
past
few
years.
An
example
is
the
use
of
YouTube
videos
in
parties.
Several
people
at
parties
nowadays
share
the
latest
YouTube
videos
they
liked
and
share
their
emotions
on
those,
or
use
YouTube
as
a
mechanism
for
music-‐
and
video
requests.
Broadcasters
gratefully
incorporate
these
functions
into
their
set
top
boxes,
thereby
giving
more
use
to
IPTV.
Another
good
example
of
an
application
that
accelerated
a
pattern
change
in
our
television
viewing
behavior
is
the
Digital
Video
Recorder
(DVR),
which
introduced
delayed
viewing
instead
of
or
next
to
real
time
viewing.
In
the
USA
this
was
mainly
set
off
by
the
introduction
of
TiVo,
which
never
took
off
in
Europe.
Digital
video
recorders
have
however
found
their
way
into
the
living
room
in
Europe
also.
In
The
Netherlands
“Uitzending
gemist”
is
a
good
example
of
the
delayed
viewing,
resulting
in
shifting
media
usage.
These
applications
are
indeed
disruptive,
since
they
change
our
media
consumption
patterns
(e.g.
pause,
skip
ads),
have
a
huge
impact
on
existing
business
models
(e.g.
tv
advertising)
and
result
in
completely
new
business
models
(e.g.?).
This
kind
of
innovation,
even
though
often
instigated
from
Internet
TV
applications,
is
helping
consumers
to
change
their
behavior
and
get
used
to
interactiveness
on
TV.
This
strengthens
us
in
the
thoughts
that
the
change
in
behavior
is
already
underway.
The
availability
of
“perceived
useful”
applications
heavily
influences
these
changes.
In
this
paper
we
do
not
explore
the
behavioral
changes
any
further,
but
it
is
certainly
ground
for
further
research.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
27
Since
our
TV
viewing
behavior
is
still
mainly
“lean
back”,
or
passive,
the
necessary
change
in
behavior
complicates
(=slows)
the
diffusion
process.
The
diffusion
process
is
therefore
still
mainly
dependent
on
the
applications
and
services
that
are
available
to
end-‐users.
Companies
introducing
IPTV
typically
start
their
offering
with
services
that
require
a
low
entry
point
with
regard
to
the
behavioral
change
(learning
curve).
Typically,
the
IPTV
offering
starts
with
applications
for
delayed
viewing
(DVR
functionality
without
a
DRV
device)
and
Video
on
Demand
(VOD),
which
is
a
small
step
from
(physically)
renting
a
video.
These
changes
slowly
introduce
interactive
behavior
to
a
once
non-‐interactive
medium
and
facilitate
our
getting
used
to
these
possibilities,
thereby
altering
our
behavioral
patterns.
The
convergence
from
media
usage
and
change
from
passive
to
(inter)active
does
however
require
an
evolution
in
user
interface
design
and
user
interaction
design,
as
Obrist
et
al
[Obrist
et
al,
2008]
have
concluded
in
their
study
“Usability
&
User
Experience:
Preliminary
Results
from
Evaluating
an
IPTV
Community
Platform".
Much
research
in
this
field
has
been
done
by
Jacob
Nielsen.
He
compares
the
main
user
interface
characteristics
between
traditional
television
and
computers:
In
this
paper
we
will
however
not
go
deeper
into
the
subject
of
user
interface
and
user
interaction
design.
We
merely
want
to
state
this
as
an
important
factor
that
hinders
the
adoption
rate.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
28
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
29
For
our
research
we
did
a
quantitative
study
amongst
industry
players
to
investigate
their
opinion
on
the
diffusion
of
IPTV
and
the
role
of
standards,
and
a
qualitative
study
(interviews)
with
key
players
from
broadcasters
and
publishers
to
investigate
the
content
and
services
side.
Online survey
For
our
quantitative
study
on
the
role
of
standards
in
the
diffusion
process
of
IPTV
we
set
up
an
online
survey.
In
this
survey
we
asked
industry
players
in
IPTV-‐related
companies:
Our
objective
in
this
survey
was
to
investigate
what
view
industry
players
within
the
IPTV
domain
have
on
the
diffusion
process
of
IPTV
and
in
particular
on
these
questions
regarding
our
hypotheses:
We aimed to reach 30+ respondents for the online survey and 5 interviews.
In
our
first
attempt
of
getting
respondents
for
the
online
survey
we
approached
several
(over
70)
IPTV-‐related
websites,
trade-‐organizations,
umbrella-‐organizations,
major
consulting
firms
and
individual
contacts
we
have
in
the
IPTV
domain.
This
resulted
in
some
response,
but
did
not
come
close
to
the
30+
respondents
we
were
aiming
for.
After
a
brainstorm
session
on
how
to
raise
more
responses,
we
decided
to
try
to
make
use
of
our
social
media
channels
to
get
a
better
response.
We
particularly
posted
our
survey-‐request
in
the
LinkedIn
groups
“IPTV”,
“IPTV
Forum”,
“IPTV
Middleware”,
“Set-‐top
Box
&
IDTV,
Mediacenter
DVB
and
IP
/
CI+”
and
“HDTV
Group”.
This
had
an
overwhelming
result
on
the
response
on
our
survey:
within
3
weeks
we
attracted
144
respondents
from
all
major
countries
in
Western
Europe
and
a
lot
of
email
from
group
members.
56
respondents
completed
the
full
survey,
including
full
personal
details,
while
on
average
70
respondents
answered
the
questions
that
related
to
our
hypotheses.
For
our
interviews
we
contacted
12
IPTV-‐related
companies.
This
resulted
in
5
interviews
with
key
players
in
media-‐
or
media-‐related
companies:
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
30
• Tele2
• Netherlands
Public
Broadcasting
(NPO)
• Rabobank
• Philips
• AD
Nieuwsmedia
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
31
Survey population
Our
online
survey
was
conducted
using
Survey
Monkey
(http://www.surveymonkey.com).
We
used
our
personal
network
in
the
IPTV
world,
augmented
by
the
use
of
postings
in
relevant
LinkedIn
groups
to
draw
respondents
to
our
survey.
It
resulted
in
a
total
of
145
respondents
from
over
14
countries:
Our
survey
population
consisted
almost
fully
of
experts
in
IPTV
or
IPTV-‐related
companies.
44%
of
our
respondents
work
for
telecommunications
companies
in
Western
Europe,
16%
came
from
broadcasting
companies.
Most respondents work in large companies, although also smaller companies took part:
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
32
Our respondents are mainly working in technical functions (CTO, Tech manager).
The
companies
our
respondents
work
for
(still)
have
a
small
market
share
in
the
TV
area
(52%
show
a
market
share
of
<5%).
We
believe
this
has
a
high
correlation
with
the
response
from
telecommunications
companies
that
are
relative
newcomers
in
the
TV
distribution
chain
as
a
result
of
the
digitization
and
their
existing
(physical)
network
infrastructure.
They
show
a
small
number
of
subscribers
for
TV
(51%
have
<50.000
TV
subscribers),
digital
TV
(57%
have
<50.000
digital
TV
subscribers),
and
IPTV
subscribers
(69%
have
<50.000
IPTV
subscribers).
Our
survey
focuses
on
the
role
of
standards.
We
started
by
investigating
the
views
of
our
respondents
on
standardization
and
the
role
of
standardization
in
the
diffusion
of
IPTV.
Our
respondents
indicate
that
they
regard
standardization
as
important
(56%
of
our
respondents
say
standardization
is
very
important,
44%
say
a
dominant
platform
for
IPTV
is
important).
We
asked
our
respondents
what
TV
add-‐on
services
they
currently
offer
their
subscribers.
84%
offer
Video
on
Demand
(VoD)
services,
69%
offer
HDTV,
63%
offer
DVR
services.
In
general
there
are
3
options
for
asking
fees
on
IPTV
services
with
a
different
granularity:
a
general
access
fee,
a
fee
per
service
and
a
pay
per
view
fee.
Most
of
our
respondents
(71%)
ask
a
subscriptions
fee
for
(in
general)
access
to
their
IPTV
services,
46%
ask
a
per
service
subscription
fee,
54%
ask
a
pay
per
view
fee.
When
asked
for
their
expectations
for
the
coming
years
we
see
that
our
respondents
expect
a
noticeable
change
(growth)
in
the
number
of
subscribers
(27%
of
respondents
expect
to
have
<50.000
subscribers,
20%
expect
to
have
50.000-‐100.000
subscribers).
With
regard
to
the
applications
and
services,
several
new
applications
and
services
are
expected
to
be
added:
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
33
Our
respondents
show
a
very
coherent
opinion
on
the
relevance
of
applications
and
services
in
the
diffusion:
81%
think
applications
and
services
are
important
for
the
adoption
by
consumers
and
90%
think
content
(information)
is
important
for
the
adoption
by
consumers.
The views on what is the main bottleneck (for consumers) in the current diffusion process differ:
As
can
be
expected,
our
respondents
agree
on
the
importance
of
ease
of
use
(94%
marked
it
as
important)
and
price
(76%
marked
it
as
important).
On
the
questions
regarding
why
publishers
are
reluctant
to
create
content,
products
and
services
for
IPTV,
the
opinions
differ
somewhat:
• 20%
(only!)
feel
that
publishers
are
not
familiar
with
the
possibilities
of
IPTV
• 35%
think
the
lack
of
a
good
business
model
is
the
bottleneck
for
publishers
• 21%
think
the
lack
of
platform
standardization
is
the
bottleneck
for
publishers
Half
of
our
respondents
(50%)
feel
that
the
absence
of
a
dominant
platform
standard
slows
the
diffusion
of
IPTV.
In
our
investigation
on
the
platforms
that
are
currently
being
used
by
our
respondents
we
found
a
scattered
landscape:
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
34
When asked what factors influenced or dictated the platform selection we found that:
• 38%
selected
the
platform
for
backend-‐integrations
possibilities
and/or
architectural
fit
• 26%
selected
the
platform
for
the
available
applications
• 29%
selected
the
platform
for
strategic
(alliance)
reasons
Although
the
respondents
tend
to
agree
on
the
importance
of
standardization
69%
expect
NOT
to
change
platforms
within
the
next
2
years.
This
is
probably
related
to
strategic
contracts
and
investments.
[ed:
we
did
not
ask
for
their
motivation]
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
35
We
have
interviewed
managers
from
five
companies
in
the
Netherlands
about
their
views
on
IPTV.
They
operate
in
very
different
markets,
but
all
have
one
thing
in
common:
they
play
a
role
in
IPTV
or
interactive
television
in
the
Netherlands.
Bram
Tullemans
of
the
Netherlands
Public
Broadcasting
(NPO)
says
that
the
main
obstacle
for
implementing
interactive
television
is
the
cable
companies.
According
to
Tullemans
it
is
difficult
to
realize
a
return
channel
within
the
infrastructure
of
the
cable
companies.
That
is
why
the
Dutch
public
broadcasters
look
at
mobile
technology
to
provide
a
return
channel.
Content
is
not
an
issue,
says
Tullemans.
“The
content
will
be
produced
once
the
technology
is
available”.
Marcel
Kuil
of
The
Rabobank
believes
that
content
can
play
a
role
in
promoting
the
diffusion
of
IPTV.
That
is
why
the
Rabobank
is
so
active
in
this
field.
Kuil
thinks
that
IPTV
is
completely
unknown
to
the
public.
Therefore
most
people
don’t
see
the
possibilities,
says
Kuil.
It
doesn’t
help
that
there
are
no
technical
standards,
but
Kuil
sees
progress
in
this
area.
Hans
Broekhuis
of
Tele2
is
very
outspoken
about
the
technology
of
IPTV.
He
thinks
that
technology
isn’t
the
issue
anymore.
Neither
is
content,
says
Broekhuis.
“The
premium
content
is
there”.
The
diffusion
of
IPTV
is
mostly
a
marketing
issue,
believes
Broekhuis.
“People
will
have
to
be
convinced
of
the
benefits.
Otherwise
it
will
never
work”.
Bart
van
Oortmerssen
of
the
newspaper
AD
Nieuwsmedia
doesn’t
think
that
the
absence
of
standards
in
IPTV
is
a
real
problem.
He
says
this
based
on
his
experience
with
Net
TV
of
Philips.
“If
you
have
the
content
in
order
and
if
the
code
is
right,
it
should
be
no
problem”.
Robert
Timmer
of
Philips
believes
that
there
has
to
be
a
sustainable
business
model
for
IPTV.
Otherwise
the
lifespan
for
this
technology
could
be
very
short.
Content
and
services
for
interactive
television
provide
the
real
added
value
for
the
consumer,
says
Timmer.
At
the
same
time,
standards
are
very
important,
according
to
Timmer.
“It’s
no
use
without
standards”.
Most
of
the
managers
we
interviewed
think
that
IPTV
is
still
in
it’s
infant
years.
According
to
them,
the
breakthrough
for
this
technology
is
not
to
be
expected
in
the
near
future.
As
Robert
Timmer
of
Philips
puts
it:
“Broadcast
will
be
around
for
a
long
time
to
come”.
We
specifically
asked
the
interviewees
about
the
role
of
standards
and
the
availability
of
content
and
services
in
the
diffusion
of
IPTV.
Striking
was
that
none
of
the
interviewed
managers
see
the
lack
of
standards
as
an
obstacle.
The
technology
has
evolved
so
much
that
this
is
no
longer
the
biggest
problem,
they
said.
Although
Philips
and
NPO
are
convinced
that
standards
could
help
the
diffusion,
they
don’t
see
it
as
a
major
issue.
The
other
three,
Tele2,
Rabobank
and
AD
Nieuwsmedia,
say
that
technology
is
no
longer
a
bottleneck.
The
interviewed
managers
see
two
important
factors
why
IPTV
is
still
an
emerging
technology:
1. The
network.
In
the
Netherlands
the
cable
companies
are
still
the
dominant
distribution
channel
for
television.
These
cable
companies
hardly
offer
any
IPTV
services
to
their
customers,
while
being
very
reluctant
to
open
their
network
to
other
content
providers.
This
means
that
the
current
content
offering
for
the
cable
TV
customers
has
hardly
changed.
In
this
situation
it
is
hard
to
persuade
consumers
to
make
the
switch
to
IPTV,
especially
when
there
not
convinced
of
the
added
value.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
36
2. The
content.
The
conclusion
from
the
interviews
is
that
there
is
just
not
enough
content
being
produced
for
IPTV.
Most
of
the
services
are
based
on
existing
content.
As
Bram
Tullemans
of
the
public
broadcasting
company
NPO
puts
it:
“The
amount
of
content
that
is
really
interesting
for
the
consumer
just
isn’t
there.
There
is
no
added
value
in
IPTV
yet”.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
37
3.4
Conclusions
Hypothesis
1:
The
primary
reason
for
the
slow
adoption
of
interactive
TV
(and
therefore
IPTV)
by
consumers
is
the
lack
of
useful
content/applications/services
Hypothesis
2:
The
primary
reason
for
the
lack
of
useful
content/applications/services
for
IPTV
is
the
reluctance
of
publishers
to
provide/develop
such
content/applications/services
because
they
are
unaware
of
the
possibilities
and
held
back
by
the
technological
complexity,
the
plethora
of
(middleware)
platforms
and
the
absence
of
a
dominant
standard.
From
our
desk
research
we
could,
by
comparing
the
IPTV
number
of
subscribers
to
other
(related)
innovation
adoption
curves
(color
TV,
digital
TV,
etc),
establish
the
position
of
IPTV
on
the
adoption
curve
(Rogers)
as
still
in
the
early
stages.
In
our
quantitative
research
we
investigated
the
views
of
our
respondents
on
the
TAM
factors
(PU
(mainly)
and
PEOU)
of
IPTV.
We
found
that
knowledge
of
existence
(36%)
and
(the
absence
of)
content
and
services
(39%)
are
considered
the
most
important
factors
with
regard
to
PU.
Our
respondents
show
a
very
coherent
opinion
on
the
relevance
of
applications
and
services
in
the
diffusion:
81%
think
applications
and
services
are
important
for
the
adoption
by
consumers
and
90%
think
content
(information)
is
important
for
the
adoption
by
consumers.
Our
respondents
agree
on
the
importance
of
ease
of
use
(PEOU,
94%
marked
it
as
important),
but
we
did
not
ask
enough
specific
questions
with
regard
to
PEOU
to
draw
any
conclusions
on
that.
While
we
(the
researchers)
feel
that
consumers
are
not
adopting
IPTV
(primarily)
because
of
the
lack
of
knowledge
of
its
existence
(which
in
fact
may
be
due
to
the
absence
of
relevant
content,
applications
and
services),
our
respondents
regard
the
absence
of
content,
applications
and
services
as
the
primary
reason
(75%)
for
the
slow
adoption.
94%
think
that
(perceived)
ease
of
use
is
of
key
importance
to
the
adoption
by
consumers,
but
only
25%
feel
that
this
is
the
main
bottleneck
We
can
therefore
conclude
that
our
respondents
agree
with
hypothesis
1.
Furthermore,
we
investigated
if
the
IPTV
providers
agree
on
our
assumptions
on
IPTV
adoption,
the
relation
with
the
standardization
process
(or
the
absence
thereof)
and
their
willingness
to
move
towards
a
more
standardized
technology
platform.
The
content,
applications
and
services
comes
from
publishers.
Of
our
research
group
only
20%
regard
the
lack
of
knowledge
of
the
existence
of
IPTV
among
publishers
as
the
reason
for
publishers
not
to
jump
at
IPTV.
36%
feel
that
the
lack
of
a
good
business
model
is
the
primary
reason
for
this.
We
have
tried
to
verify
this
in
the
in-‐depth
discussions
in
our
qualitative
research
(interviews).
Publishers
and
other
important
players
in
the
IPTV
world
in
the
Netherlands
do
see
the
lack
of
good
content
as
an
important
obstacle
for
the
diffusion
of
IPTV.
The
companies
we
interviewed
in
our
qualitative
research
agree
that
there
is
hardly
any
specific
content
being
produced
for
IPTV.
There
is
just
no
demand
for
it
at
the
moment,
therefore
there
is
no
business
model
for
the
publishers.
The
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
38
dominant
players
in
the
distribution
of
tv
in
the
Netherlands,
the
cable
companies,
hardly
offer
any
interactive
content.
Video
on
demand
and
“Uitzending
Gemist”
are
the
only
exceptions,
but
they
are
entirely
based
on
existing
content.
The
interviewed
managers
see
this
network
issue
as
the
most
important
reason
that
IPTV
is
still
an
emerging
technology.
With
regard
to
the
role
of
standards
in
the
diffusion
process:
the
(middleware)
platform
landscape
is
scattered.
And,
although
50%
think
the
absence
of
a
dominant
platform
standard
slows
the
diffusion
of
IPTV,
69%
of
respondents
do
not
expect
to
change
platforms
over
the
next
two
years.
This
is
not
very
promising
for
speeding
up
the
diffusion
process.
With
regard
to
hypothesis
2,
we
can
therefore
conclude
that
our
research
has
revealed
little
support
for
this
hypothesis.
Our
respondents
consider
the
lack
of
a
valid
business
model
far
more
important
than
the
lack
of
(platform)
standardization.
Although
we
still
believe
in
a
strong
role
for
standardization
and
our
respondent
tend
to
agree
on
that,
we
found
that
there
is
very
little
willingness,
let
alone
eagerness,
to
standardize
in
the
industry.
Even
with
the
support
of
sound
theoretical
bases
like
the
adoption
curve
for
interactive
innovations
(Rogers)
and
the
examples
from
neighboring
fields
like
Video2000/Betamax/VHS,
Blu-‐ray/HD-‐DVD,
SACD/DVD-‐A,
the
industry
seems
reluctant
to
standardize
at
the
price
of
abandoning
past
investments
(sunk
cost)
and
strategic
alliances.
As
we
described,
a
disruptive
innovation
can
cause
a
radical
speedup
in
the
diffusion.
This
circumvents
the
(lack
of)
platform
standardization
by
shifting
towards
application-‐
or
service
standardization
due
to
customer
demand/expectations.
Our
hope
is
on
(low
interactive)
services
like
YouTube-‐integration,
Video
on
Demand
(including
“Uitzending
Gemist”)
and
remote
PVR
to
become
widely
accepted.
This
will
at
least
provide
the
(broad)
infrastructure
for
interactive
services,
so
new
applications
and
services
can
emerge.
Amongst
them
may
be
new
breakthrough
innovations
which
accelerate
the
diffusion
of
(real)
IPTV.
Based
on
our
research
findings
we
feel
that
a
quick
breakthrough
of
IPTV
in
the
near
future
is
not
very
likely.
We
expect
WebTV,
which
is
less
affected
by
the
factors
we
found,
to
have
a
better
chance
of
conquering
our
living
rooms.
The
openness
and
lack
of
restrictions
of
WebTV
may
result
in
different
(unanticipated?)
use
of
the
technology,
which
could
lead
to
more
disruptive
applications
and
services
for
interactive
TV.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
39
3.5
Reflection
Looking
back
at
the
thesis
process
we
lived
through
the
previous
year,
we
can
conclude
we
had
quite
a
struggle.
We
started
off
very
eager
and
enthusiastic
about
our
hypotheses.
At
that
moment
in
time
we
were
submerged
in
the
world
of
IPTV
because
of
the
Deutsche
Telekom
Interactive
TV
award
and
reaching
the
finals
with
3-‐frogs
(which
one
of
the
authors
is
a
partner
in).
Finding
the
relevant
theoretical
models
for
our
research
by
reading
up
on
recent
theoretical
material
was
our
first
major
bottleneck.
We
found
that
we
were
not
used
to
reading
extensive
research
material
and
interpreting
the
findings.
Investing
more
time
and
effort
during
this
phase
in
starting
to
write
our
thesis
document
would
have
saved
us
a
lot
of
time
in
the
analysis
phase
and
the
final
phase
of
writing
our
thesis
document,
but
we
did
not.
Even
though
it
was
not
easy
to
combine
our
day
jobs
with
finishing
our
thesis,
in
the
early
phases
of
our
thesis
(mainly
the
research
phase),
we
were
able
to
get
up
to
speed
rather
quickly.
This
resulted
in
a
swift
setting
up
the
quantitative
part
of
our
research
(survey
questions).
Finding
relevant
respondents
turned
out
to
be
a
lot
harder
than
expected.
After
contacting
over
30
companies
in
the
IPTV
area
we
found
that
we
could
hardly
raise
any
respondents
for
our
research.
Even
close
personal
contacts
did
not
result
in
much
response.
After
re-‐
evaluating
our
approach
we
decided
to
test
if
we
could
leverage
our
experience
in
the
use
of
new
media
to
our
advantage
by
using
LinkedIn
and
Twitter
for
reaching
our
respondents.
Especially
the
use
of
LinkedIn
groups
on
the
topic
of
IPTV
resulted
in
a
large
set
of
respondents
in
a
short
period
of
time.
Setting
up
the
interviews
was
even
harder.
We
contacted
over
20
companies
in
7
European
countries
for
an
interview
that
resulted
in
only
3
interviews.
Through
our
personal
contacts
we
finally
raised
this
number
to
5
interviews.
The
interviews
were
very
interesting
and
insightful
though.
Because
our
research
took
place
during
the
Credit
Crisis,
this
may
have
played
an
important
role
in
our
struggle
for
respondents
and
may
even
have
influenced
some
of
the
factors
we
have
investigated.
During
the
analysis
phase
we
discovered
that
it
would
have
been
a
good
idea
to
also
do
a
survey
amongst
consumers
to
investigate
their
views
on
interactive
TV.
We
have
not
done
that
survey,
but
this
is
strongly
suggested
as
follow
up
research.
The
hardest
part
of
our
thesis,
after
preparing
our
research,
setting
up
the
survey,
conducting
the
interviews
and
analyzing
the
results,
was
creating
our
thesis
report.
This
phase
took
us
over
6
months,
while
our
motivation
was
low,
the
problems
of
the
Credit
Crisis
were
fully
influencing
our
daily
business
and
we
already
had
our
findings
analyzed.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
40
At
the
start
we
decided
to
divide
the
different
parts
of
our
research
between
the
two
of
us
with
clean-‐cut
pieces
of
work.
During
the
process
we
found
we
mostly
needed
each
other
to
stay
motivated
and
make
progress.
It
took
a
lot
of
effort
to
stay
on
track
and
(mainly)
to
finish
our
work,
but
we
came
out
as
better
friends
and
partners
in
a
new
venture
(Journalist.nl),
partly
as
a
result
of
this
process.
Looking
back,
the
memories
of
our
struggle
will
faint
and
will
be
replaced
with
pride
about
finishing
our
thesis
and
earning
our
MBA
degree.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
41
3.6
Suggestions
In
our
research
we
have
focused
on
the
role
of
IPTV-‐providers
and
publishers.
Of
course
consumers
also
play
a
big
role
in
the
diffusion
of
this
relatively
new
technology.
There
are
a
number
of
(commercial)
market
research
companies
that
have
data
about
consumer
behavior
with
regard
to
IPTV.
We
have
found
that
there
is
hardly
any
independent
scientific
research
in
this
field.
Therefore
we
think
a
study
about
consumers
and
the
adoption
of
IPTV
would
be
a
good
idea.
• The
relationship
between
the
existing
platform
in
use
with
IPTV
providers
and
the
adoption
of
new
standards
A
maturing
industry
like
IPTV
attracts
new
standards.
At
the
same
time
these
standards
seem
to
face
resistance
from
IPTV
providers.
They
seem
to
be
reluctant
to
give
up
their
existing
technology
and
argue
there
is
no
need
for
change.
A
study
on
the
relationship
between
existing
platforms
in
use
with
IPTV
providers
and
the
adaption
of
new
standards
would
be
very
useful.
The
lack
of
standards
in
the
IPTV
industry
could
prove
to
be
very
costly
in
the
long
run.
It
would
be
interesting
to
do
a
study
on
the
financial
benefits
if
a
standard
would
be
adopted
by
the
industry.
For
this
master
thesis
we
have
used
the
social
network
LinkedIn
to
promote
our
web
survey
among
professionals
in
the
IPTV
world.
This
worked
remarkably
well.
We
recommend
a
study
on
the
use
of
social
media
(LinkedIn,
Facebook,
Twitter)
in
scientific
research.
• The influence of design and interface on the adoption curve
We
think
that
the
design
of
most
interfaces
used
in
IPTV
can
be
improved.
In
out
view
functionality,
perceived
usefulness
and
perceived
ease
of
use
play
an
important
role
in
the
diffusion.
A
user
interface
that
is
intuitive
and
allow
users
to
really
personalize
and
customize
their
TV
viewing
could
help
the
spread
of
the
technology
enormously.
We
think
a
study
on
the
influence
of
interfaces
and
design
on
the
adoption
curve
is
very
desirable.
• The role of standards in the diffusion of Web TV
The
main
subject
of
our
master
thesis
is
the
role
of
standards
in
the
diffusion
of
IPTV.
It
would
be
interesting
to
see
if
and
to
what
extent
standards
play
a
role
in
the
diffusion
of
Web
TV.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
42
• Be an enabler instead of a publisher, help publishers to make money
• Be more flexible when it comes to the adaptation of new standards
• Invest to boost quality of services offered in terms of both content and service availability
• Introduce
subscription
music
services
and
gaming
on
demand.
This
would
add
would
great
value
for
customers.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
43
Appendices
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
44
[IPTV
&
WebTV
-‐
Hype
oder
Revolution
der
TV-‐Landschaft?
-‐
Jakob
J.
Assmann
-‐
Institut
für
Information,
Organisation
und
Management,
2007]
Technological
forecasting
and
scenarios
matter:
Research
into
the
use
of
information
and
communication
technology
in
the
home
environment
in
2010
–
H.
Bouwman,
P.
van
der
Duin,
2003
‘Global
Standards
of
IPTV
and
its
infrastructural
framework’,
presentation
by
Chae
Sub
Lee,
Telecommunications
Technology
Association
of
Korea.
Deumer, P. (2008), Internet TV & the Dutch broadcast value chain.
IPTV-‐News
(http://www.iptv-‐news.com/iptv_news/march_09/iptv_households_in_western_europe_reach_10mn_at_end-‐
2008),
IPTV-‐News (http://www.iptv-‐news.com/iptv_news/june_09_2/dutch_cable_households_exceed_2mn)
IPTV-‐Watch (http://www.iptv-‐watch.co.uk/18062009-‐iptv-‐booming-‐in-‐germany.html)
Personal TV: A Qualitative Study of Mobile TV Users – Cui, Chipchase, Jung, 2005
The television will be revolutionized: effects of PVRs and file sharing on television watching – Brown, Barkhuus, 2006
“I Just Want to See the News” – Interactivity in Mobile Environments – Hubel, Theilmann, Theilmann, 2007
Is TV Dead? Consumer Behavior in the Digital TV Environment and Beyond -‐ Gali Einav and John Carey, 2009
IPTV
&
WebTV
-‐
Hype
oder
Revolution
der
TV-‐Landschaft?
-‐
Jakob
J.
Assmann
-‐
Institut
für
Information,
Organisation
und
Management,
2007
Making TV Meaningful: Consumers and IPTV Applications – D. Iyer, K. Scherf, 2006 -‐ Parks Associates
Open
IPTV
Forum
–
Toward
an
open
IPTV
standard
-‐
Mats
Cedervall,
Uwe
Horn,
Yunchao
Hu,
Ignacio
Más
Ivars
and
Thomas
Näsström,
2007
–
Ericsson
review
Baas
over
de
buis.
De
kansen
en
bedreigingen
voor
reclame
bij
een
transformatie
van
analoge
naar
digitale
televisie
-‐
J.J.L.
Nagtegaal,
2005
-‐
Erasmus
Universiteit
Rotterdam
Betekent IPTV het einde van de huidige commerciële zenders – S. Pool , J. Sinnige, M. Zantinge, 2006 -‐ Hogeschool Utrecht
Studie naar de technologie en mogelijkheden van iDTV – S. Mahieu, 2006 – PIH
IPTV business models: profit and loss in the telco TV space – ScreenDigest, 2008
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
45
Potential user factors driving adoption of IPTV – Dong Hee Shin, 2006
Technical
innovations,
standardization
and
regional
comparison,
a
case
study
in
mobile
communications
–
Sadahiko
Kano,
2000
IPTV
&
WebTV
-‐
Hype
oder
Revolution
der
TV-‐Landschaft?
-‐
Jakob
J.
Assmann
-‐
Institut
für
Information,
Organisation
und
Management,
2007
The
role
of
standards
in
innovation
and
diffusion
of
broadband
mobile
services:
The
case
of
South
Korea
–
Yoo,
Lyytinen,
Yang,
2005
The
diffusion
of
interactive
communication
innovations
and
the
critical
mass:
the
adoption
of
telecommunications
services
by
German
banks,
Mahler
&
Rogers,
1999
Social TV: Designing for Distributed, Sociable Television Viewing – Oehlberg et al – Stanford University, 2006
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
46
1. Company / person
• Can you give a brief history of your career?
• Why did your company select IPTV as the distribution standard
o Out of necessity (no alternative)?
o Because it was the best alternative?
• How did your company get involved in IPTV?
• What is your company’s view on the IPTV market
• What is your company's strategy in the IPTV-market (R&D, product,
standards)?
o What is your company’s view of the current IPTV-market (for instance
competition, technology, standards, applications, hardware)?
3. (Technical) standards
• What standard(s) does your company use/support and why?
• Is your company involved in the development of these standards
o Are you involved in IPTV standardization?
• Which actors are involved in the development of the IPTV standard?
• Do you see standards as a key aspect that affects the diffusion of IPTV in your
country?
• What other technological aspects play a role in this regard?
5. Diffusion
• What is your view on the current diffusion of IPTV in your country and in the
rest of the world?
o which (f)actors influence the diffusion in your opinion?
• What – in your view – are the reasons for the big regional differences in the
diffusion op IPTV in the world?
• Can you compare the present IPTV to the diffusion of other technology, for
instance Blu-ray?
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
47
1. Company / person
• Can you give a brief history of your career?
• What range of products/brands does you company publish?
• On what media-channels / devices does your company publish
products/content?
• Does your company currently publish content/applications/services for
Interactive Television?
• What is your company’s strategy on Interactive Television?
o What is your company’s view of the current IPTV-market (for instance
competition, technology, standards, applications, hardware, business
model)?
2. Landscape / value chain
• What companies and organizations do you interact with specifically for
interactive television?
o what role(s)
o How would you describe the relationship of your company with these
actors?
4. Diffusion
• What is your view on the current diffusion of IPTV in your country and in the
rest of the world?
o which (f)actors influence the diffusion in your opinion?
• What – in your view – are the reasons for the big regional differences in the
diffusion op IPTV in the world?
The
role
of
standards
in
the
diffusion
of
IPTV
in
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The
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IPTV
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The
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IPTV
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IPTV
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Bram
Tullemans
is
senior
policy
adviser
of
the
department
DTU
(Distribution,
Technology
and
Broadcasting)
of
the
NPO,
the
Netherlands
Public
Broadcasting.
NPO
is
the
organization
in
the
Netherlands
which
by
law
stimulates
cooperation
and
coordination
between
the
Dutch
national
public
broadcasters.
“I
work
for
the
NPO
now
for
1
year.
Before
I
was
employed
as
director/producer
at
the
cross
media
department
of
publisher
IDG.
Before
this
I
worked
as
a
freelancer
and
at
the
technical
department
of
Artis/Planetarium”.
Does the NPO currently publish content or services for interactive television?
“The
NPO
is
involved
in
a
number
of
trials
with
interactive
TV,
especially
with
the
so
called
‘red
button’
technology.
We
are
focussing
on
offering
related
content
with
this
technology
and
the
ability
to
switch
to
on-‐demand
functions.
But
these
are
all
in
the
trial
phase.
There
are
no
existing
programs
at
this
moment
which
use
interactivity.
The
last
program
we
had
was
a
TV-‐show
around
choirs
in
which
the
audience
could
vote
through
sms
and
influence
the
programming”.
What are the difficulties you experience with implementing interactive television?
“We
find
that
interactivity
is
hard
to
realize
with
the
cable
companies,
who
are
still
the
main
distribution
channel
in
the
Netherlands.
The
service
has
to
meet
the
specific
technical
requirements
of
the
different
platforms
the
cable
company’s
use.
So
for
each
company
you
have
to
adapt
the
service
each
time.
It
is
also
difficult
to
realize
a
return
channel
within
the
infrastructure
of
the
cable
companies.
This
of
course
makes
development
complicated.
It
doesn’t
help
that
providers
such
as
cable
companies
are
reluctant
to
release
information
that
is
gathered
through
interactive
television.
This
is
why
we
also
look
at
mobile
technology
to
provide
a
return
channel.
We
consider
the
‘red
button’
technology
as
the
easiest
to
implement.
You
can
use
this
for
instance
for
accessing
related
content
which
can
be
easily
put
in
place
beforehand”.
What
is
the
reason
that
there
is
still
no
specific
content
available
for
interactive
television
at
this
moment
within
the
Dutch
public
broadcasters?
“That
kind
of
content
will
be
produced
once
the
technology
is
available.
For
the
broadcasters
it’s
always
the
dilemma
of
weighing
possibilities
against
cost.
The
makers
of
TV-‐shows
regularly
express
the
desire
to
interact
with
the
public
and
they
do
for
instance
through
SMS,
mail
and
Twitter.
But
producing
an
interactive
program
is
still
a
bridge
too
far”.
What is the strategy of NPO with regard to interactive television?
“Interactive
television
is
coming
and
we
want
to
be
ready
for
it.
That
is
why
we
are
conducting
experiments
with
red
button
with
the
cable
companies
on
the
one
hand
and
the
exploration
of
The
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of
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in
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Europe
61
interactivity
through
other
platforms
such
as
mobile
on
the
other
hand.
We
have
created
budget
to
facilitate
this.
If
the
technology
proves
itself
and
TV
makers
want
to
use
it
than
we
will
find
money
to
produce
specific
content
for
IPTV.
For
instance
we
are
working
on
our
own
‘red
button’
technology.
But
xml-‐communication
is
also
an
important
issue.
We
are
using
the
subtitles
of
programmes
to
index
this
content.
We
are
also
working
on
a
project
with
visual
radio
in
which
users
can
also
upload
content”.
What is the view of NPO on the current IPTV market?
“We
talk
to
a
lot
of
different
parties
who
are
involved
in
IPTV.
A
lot.
But
no
one
seems
to
reach
the
threshold
in
which
you
can
make
this
technology
work.
Almost
no
one
reached
an
install
base
of
50.000,
which
is
considered
to
be
the
minimum
for
a
viable
business
case”.
“Well,
there
are
many
reasons
that
IPTV
is
still
an
emerging
technology.
First
there
is
the
network.
It
is
just
not
ready
yet.
You
have
to
deal
with
so
many
companies
who
are
involved
in
the
whole
process
between
broadcaster
and
provider,
but
also
between
consumer
and
provider.
There
are
so
may
factors
you
can’t
control.
Also
bandwidth
is
still
an
issue.
If
you
are
going
to
use
the
web
for
very
large
data
files,
the
providers
want
to
get
paid.
This
makes
the
internet
providers
most
suited
for
IPTV,
by
the
way.
On
the
other
hand
there
is
the
content.
The
public
broadcasters
have
interesting
content
for
IPTV
and
we
we’re
the
first
to
be
on
the
platforms
of
KPN
and
Tele2.
But
the
amount
of
content
that
is
really
interesting
for
the
consumer
just
isn’t
there
yet.
There
is
no
real
added
value
in
IPTV
yet”.
What role do standards play in the diffusion of IPTV?
“The
lack
of
a
standard
is
a
bottleneck.
It
makes
the
market
unclear.
And
it
makes
it
difficult
to
develop.
Standards
are
indispensible.
With
IPTV
things
have
remained
to
open
in
my
view.
Here
at
NPO
we
believe
in
a
‘hybrid’
model.
Broadcasting
through
DVB-‐T
and
using
the
cable
or
Internet
as
return
channel.
I
am
a
member
of
a
working
group
of
the
European
Broadcasting
Union
which
is
working
on
this.
Of
course
we
are
also
talking
with
Philips
and
Samsung
about
new
developments
as
Net
TV.”
We
seem
to
be
in
a
sort
of
Catch
22
when
it
comes
to
IPTV.
No
standards,
no
content,
no
business
model.
What
is
your
view?
“Yes,
we
seem
to
be
in
a
Catch
22.
But
we
can
break
free.
This
will
require
an
extensive
lobby
with
all
involved
parties.
We
are
developing
content
for
interactive
TV,
but
it’s
trial
and
error.
For
instance
the
‘red
button’
is
incredibly
hard
to
realize.
There
is
no
standard.
Interactivity
is
not
something
you
can
put
out
there
ready
to
be
picked
up.
Also
here
within
the
Dutch
public
broadcasting
system
budgets
are
still
divided
between
TV,
radio
and
internet.
This
is
hard
to
break
through.
A
TV-‐show
is
still
produced
for
TV,
and
not
for
interactivity”.
What are the reasons for the big regional differences in the diffusion of IPTV?
“The
differences
in
infrastructure
play
a
big
role,
mainly
the
difference
in
bandwidth.
But
it
is
also
a
question
of
availability
of
the
content”.
The
role
of
standards
in
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diffusion
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IPTV
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Europe
62
Marcel
Kuil
is
program
manager
for
the
one
of
the
largest
banks
in
the
Netherlands,
Rabobank.
He
is
currently
responsible
for
the
New
Media
program
of
the
Rabobank.
Marcel
has
worked
most
of
his
career
at
Rabobank.
After
a
year
at
the
national
post
company
PTT,
Marcel
started
at
Rabobank
in
1983.
He
has
a
background
in
information
technology
and
business
economics.
The
Rabobank
is
very
active
in
the
field
of
new
media
and
started
Rabobank
TV
more
than
4
years
ago.
The
bank
also
acts
as
a
telecom
provider
with
Rabo
Mobiel.
“We
focussed
on
the
principal
that
all
our
video
content
should
be
accessible
through
one
technical
platform,
and
that
platform
had
to
be
IP-‐based.
We
started
with
Windows
Media
Centre
as
our
primary
platform.
Initially
our
technological
infrastructure
for
video
was
developed
and
maintained
by
Logica
CMG.”
“Our
starting
point
was
the
combination
of
fun
and
the
possibility
to
do
financial
transactions
and
other
banking
affairs
on
your
tv.
That
means
that
you
can
log
on
to
your
banking
accounts
on
your
tv.
Security
is
a
big
issue
in
this
regard.
That’s
why
we
chose
for
IP.
Via
Open
TV
–
like
UPC
is
using
–
you
can’t
set
up
a
secure
connection.
That
is
of
course
crucial
for
a
bank
like
ours”.
“itv.rabobank.nl”
is
available
on
the
following
stb’s:
Windows
Media
Center,
Daily
Media,
KPN
Mine,
Mediamall,
gaming
platforms
such
as
the
Wii,
Xbox
360
and
Playstation,
Net
TV
by
Philips
(CE
HTML).”
“The
Rabobank
is
present
on
many
IP-‐based
platforms.
It’s
important
to
generate
some
sort
of
mass
and
to
reach
as
many
people
as
we
can.
We
are
also
available
on
non
IP-‐based
platforms
like
UPC
&
Tele2
where
no
secure
connection
is
possible.
There
we
only
offer
our
(video)
content,
but
subscribers
can’t
do
banking
affairs.
Mass
is
critical,
so
that’s
why
we
are
on
all
of
these
platforms.
“We
do
see
that
internet
and
tv
are
growing
much
closer.
The
basis
was
IP,
the
top
layer
could
be
different
for
different
platforms”.
“No,
Rabobank
doesn’t
produce
content
especially
for
IPTV.
We
do
make
content
for
mobile
platforms,
internet
and
TV
environments.
We
do
experiment
with
red
button
technology
in
the
TV-‐
environment,
for
instance
with
UPC.
But
the
question
is:
how
do
you
get
people
on
this
interactive
platform?
They
need
an
incentive.
I
think
the
cable
company’s
could
be
more
active
in
this
field”.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
63
“Besides
sports
–
the
Rabobank
is
a
big
sport
sponsor
i.e.g.
cycling
and
hockey
–
we
focus
on
local
content.
Our
local
banks
are
very
active
in
sponsoring
events.
We
try
to
encourage
the
production
of
video
of
these
events.
That
content
we
can
use
on
our
video
platform.
And
it
also
increases
the
involvement
of
our
clients.
Community
building
might
be
a
big
word,
but
we
do
encourage
this.
Besides
this
our
extensive
video
archive
is
also
very
important.
And
last
but
not
least
there
is
the
‘fulfilment’
aspect.
Clients
can
use
the
TV-‐platform
for
instance
to
make
an
appointment
with
one
of
our
advisers”.
“TV
is
no
longer
just
a
broadcast
platform.
TV
is
an
added
channel.
Internet
is
the
most
important
way
of
communicating
with
our
clients.
After
that
it’s
our
offices
and
branches.
Mobile
is
in
third
place,
followed
by
iTV
as
an
extra
channel”.
“We
operate
our
own
technical
platform.
That
may
change
in
the
near
future
but
not
when
it
comes
to
banking
transactions.
We
do
this
via
secure
internet
connections,
and
we
are
not
planning
on
doing
this
any
other
way.
This
is
also
something
we
emphasize
with
cable
providers”.
What role do content and services play in the diffusion of IPTV?
“Somewhere
something
has
got
to
give.
Content
can
play
this
role.
That’s
why
we
are
so
active
in
this
field.
With
our
sponsoring
content
we
have
an
edge
over
other
companies.
We
try
to
persuade
other
companies
to
be
present
on
these
kinds
of
platforms.
It
is
not
in
our
interest
if
we
are
on
our
own.
So
we
discuss
these
technologies
with
our
(banking)
competitors”.
What is your view of the current diffusion of IPTV?
“IPTV
is
completely
unknown
to
the
public.
A
digital
box
that
provides
better
picture
quality
and
better
sound
quality,
that
is
something
users
understand.
But
the
other
possibilities?
Sure,
they
know
about
Video
On
Demand
and
stuff
like
that,
the
rest
is
completely
unknown.
Of
course
it
doesn’t
help
that
every
provider
has
his
own
hardware.
But
there
is
a
lot
going
on
to
tune
the
technical
problems.
The
content
is
no
problem
as
far
as
I
can
see.
That’s
available
if
we
need
it”.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
64
Hans
Broekhuis
is
Director
TV
Marketing
and
Content
for
Tele2
in
the
Netherlands.
He
is
responsible
for
the
triple
play
offering
of
Tele
2
in
the
Netherlands.
He
manages
a
team
of
7
persons,
who
cover
the
areas
of
sales,
marketing
and
communication
and
technology.
Hans
works
for
Tele
2
since
2000.
Before
this
he
was
consultant
with
DDV
Telecommunication
Consultancy.
He
studied
Business
Management
at
the
Vrije
Universiteit
in
Amsterdam.
“It
started
when
Tele2
(then
Versatel)
acquired
the
TV
rights
of
the
Dutch
soccer
competition
in
2005.
We
chose
for
the
technology
of
Samsung
for
distribution
and
setup
a
completely
new
IP
network
in
eight
months”.
“I
think
there
is
no
market
for
IPTV.
But
there
is
a
market
for
interactive
television.
What
technology
is
used
is
of
no
importance.
There
are
many
developments
in
interactive
television.
The
past
ten
years
there
was
a
lot
of
discussion
about
which
technology
to
use.
We’ve
grown
past
that
now.
I
think
that
the
technology
is
ready
to
enable
growth
of
interactive
television.
But
this
is
mainly
a
marketing
issue.
As
I
said
technology
isn’t
the
problem
anymore.
But
neither
is
the
content.
The
premium
content
is
there,
in
our
case
soccer
and
movies.
We
see
a
growing
demand
for
Video
On
Demand
and
for
postponed
viewing.
Our
customers
want
to
see
TV
shows
when
it
suits
them.
Of
course
IPTV
enables
us
to
use
the
preference
of
customers
to
adjust
the
offering
we
make
to
them.
We
can
add
intelligence
to
our
systems.
I
don’t
believe
in
the
red
button
technology
at
the
moment.
It
has
no
added
value
yet,
producers
are
not
ready
for
it
and
the
business
case
is
also
unclear”.
“Technology
isn’t
the
issue
anymore.
VOD,
the
possibility
to
playback
missed
broadcasts
(‘Uitzending
Gemist’,
ed),
it’s
all
there.
It
would
be
more
convenient
if
there
were
standards,
but
the
lack
of
them
isn’t
a
make
or
break.
The
movement
that
we
see
now
is
that
IPTV
is
evolving
more
to
services
that
are
delivered
in
a
format
that
is
based
on
a
standard.”
What is the strategy of Tele2 in the IPTV market?
“We
are
constantly
working
to
improve
our
platform.
This
is
a
real
challenge.
We
want
to
offer
services
on
our
platform
that
will
be
used
by
our
customers.
Services
that
they
are
willing
to
pay
for.
The
consumer
now
is
much
more
interested
in
an
easy
and
cheap
offer.
From
a
marketing
perspective
this
works
much
better
than
offering
interactive
services.
It
is
still
a
challenge
to
to
make
clear
to
our
customers
what
interactive
services
are
and
to
convince
them
to
use
them”.
“No,
not
active
at
this
moment.
When
it
comes
to
technology
we
prefer
to
work
with
smaller
companies.
They
operate
faster
and
are
more
flexible.
And,
that’s
also
very
important,
they
are
more
innovative”.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
65
“We use middleware from Samsung and have built our own platform”.
What are the important developments regarding IPTV you see at the moment?
“Three
things
as
far
as
I’m
concerned.
First
of
all
the
market
for
IPTV
is
very
difficult.
It’s
hard
to
attack
the
companies
that
have
a
monopoly:
the
cable
companies
and
the
companies
that
use
satellite.
In
this
situation
it’s
hard
to
persuade
the
consumer
to
make
the
switch
to
IPTV.
Second
thing
is
that
if
people
have
a
setup
box
at
home,
it’s
hard
to
get
them
to
actually
use
the
system.
A
lot
of
people
still
have
cable
also.
The
third
issue
is
the
interactive
services.
People
have
to
start
using
them
en
start
paying
for
them.
People
will
have
to
be
convinced
of
the
benefits.
Otherwise
it
will
never
work.”
“Another
important
thing
is
internet
integration.
This
is
definitely
coming.
And
it’s
a
stimulus
for
the
complete
IPTV-‐industry.
Net
TV
for
instance
from
Philips
is
also
very
important.
Once
the
internet
integration
breaks
through,
well
then
IPTV
could
really
fly”.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
66
Bart
van
Oortmerssen
is
editorial
manager
of
the
multimedia
department
of
the
Dutch
newspaper
Algemeen
Dagblad,
which
changed
it’s
official
name
to
AD
recently.
Algemeen
Dagblad
has
a
circulation
of
460.000.
On
internet
AD.nl
has
3,9
million
unique
visitors
per
month
and
is
the
fourth
largest
news
site
in
the
Netherlands.
Bart
has
almost
25
years
of
experience
in
journalism.
He
started
at
the
regional
newspaper
Utrechts
Nieuwsblad,
which
later
became
a
part
of
AD
Nieuwsmedia.
Bart
studied
Dutch
language
at
the
Universiteit
van
Utrecht.
He
started
at
the
sports
desk
of
Utrechts
Nieuwsblad
and
after
that
worked
at
various
desks
at
the
paper.
Later
he
became
chief
editor
of
the
sports
desk
and
later
of
the
central
news
desk.
The
internet
department
of
the
paper
was
part
of
the
central
news
desk.
After
the
merger
of
Utrechts
Nieuwsblad
with
AD,
Bart
became
deputy
editor-‐in-‐
chief
in
charge
of
the
multimedia
department.
“The
Algemeen
Dagblad
was
asked
by
Philips
to
participate
in
Net
TV.
One
of
our
goals
is
to
be
present
on
more
platforms
than
just
print
and
Internet.
Our
content
offering
on
Philips
Net
TV
is
virtually
the
same
as
on
Internet.
We
just
do
a
conversion
to
CE
HTML”.
“Our
strategy
is
to
be
on
as
many
channels
that
we
can
to
make
our
brand
stronger.
Our
UPS’s
are
regional
news,
sports
and
consumer
related
journalism
and
we
try
to
be
present
on
all
platforms.
But
this
is
mainly
focussed
on
print,
internet
and
mobile.
We
have
studied
the
possibilities
for
us
on
television.
We
had
the
ambition
to
offer
complete
programs
besides
the
short
video
items
we
offer
on
internet
at
the
moment.
But
we
concluded
that
there
is
no
business
model
for
us
when
it
comes
to
television.
We
are
making
the
transition
from
traditional
newspaper
company
to
Multimedia
Company
and
that
is
hard
enough.
We
haven’t
put
time
into
interactive
concepts
because
we
want
to
see
what
happens
with
Net
TV.
If
this
proves
to
be
a
success,
we
are
able
to
roll
out
interactive
services
fast.
But
we
have
to
develop
these
services
on
the
basis
of
our
current
activities
and
content”.
Did you look at other media companies in the world to see what their strategy is with regard to IPTV?
Do you see a role for a media company such as AD Nieuwsmedia in IPTV?
“We
don’t
have
a
strategy
for
interactive
television
and
the
role
we
could
play
in
that
field.
There
is
a
vision
for
internet,
not
for
TV”.
“I
don’t
think
that
the
absence
of
standards
in
IPTV
are
a
real
problem.
If
you
have
your
content
in
order
and
if
the
code
is
right,
it
should
be
no
problem.
That
is
my
experience
with
Net
TV.
It’s
just
a
question
of
a
different
front
end.
The
back
end
stays
the
same
as
far
as
we’re
concerned”.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
67
“No,
we
don’t.
Our
motto
is:
produce
once
and
use
many.
If
there
is
a
demand
for
channel
bound
content
we
could
consider
it.
But
it’s
always
a
question
of
cost
and
revenue”.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
68
Robert
Timmer
is
Senior
Director
Net
TV
of
the
Business
Unit
Television
of
Philips
Consumer
Lifestyle.
He
studied
business
economics
at
the
University
of
Groningen
in
the
Netherlands.
He
started
as
a
temporary
employee
at
Philips
in
1987.
Robert
worked
for
the
business
unit
Domestic
Appliances
and
Personal
car.
In
1999
he
switched
to
Consumer
Electronics
and
especially
audio.
He
was
stationed
in
Asia
for
10
years
and
worked
in
Hong
Kong,
Taipei
and
Singapore.
In
2004
he
moved
back
to
the
Netherlands
and
started
for
the
Connected
Planet
Group
of
Philips.
It’s
task
was
to
develop
consumer
electronics
with
a
internet
connection
and
to
standardize
the
technology
involved.
“My
task
was
to
give
direction
to
standardization
from
a
commercial
standpoint.
Technology
is
great,
but
it
has
to
be
implementable
in
practice.
That’s
all
about
the
interface
and
a
lot
of
commercial
issues
are
involved.
At
Connected
Planet
we
focussed
on
home
networking.
Consumer
electronics
that
can
talk
to
each
other”.
Robert
is
currently
responsible
for
a
new
product
of
Philips:
Net
TV.
This
a
television
with
built-‐in
internet
connection.
Net
TV
uses
CE-‐HTML
a
new
standard
for
internet
browsing
with
consumer
electronics
like
TV’s.
What is the role of content and services for instance with Net TV, but also in IPTV?
“The
value
of
the
consumer
is
in
the
content
and
services
that
can
be
obtained
from
outside.
Here
we
have
learned
one
important
lesson.
There
has
to
be
a
sustainable
business
model.
If
there
is
no
business
model,
the
life
span
of
a
new
product
will
be
very
short.
But
this
can
be
a
very
indirect
model.
It
can
be
generating
traffic
to
a
website,
for
instance.
But
somewhere
money
has
to
be
made.
What
we
realized
is
that
consumers
are
not
waiting
for
Philips
services.
Services
are
very
specific.
People
expect
news
from
established
brands.
It’s
all
about
facilitating
these
services
and
getting
people
enthusiastic
for
them.
It
has
to
make
business
sense
to
the
consumer.
If
you
put
a
lot
of
these
services
together
–
like
we
did
with
Net
TV
–
that
is
also
interesting
for
us
business
wise.
For
instance
we
could
generate
revenue
with
the
services
we
offer
on
Net
TV
through
a
revenue
share”.
“If
you
want
to
integrate
these
services
into
a
system
like
Net
TV
you
have
to
design
an
ecosystem.
Basically
that
means
a
browser.
Almost
all
consumers,
especially
in
the
Netherlands
–
have
internet
access.
The
challenge
for
us
was
how
to
build
in
a
browser
into
a
television.
That
was
a
bog
conceptual
challenge.
With
TV
you
don’t
have
some
essential
interactive
elements
–
like
a
mouse
and
keyboard
–
that
you
have
on
a
PC.
That’s
why
Philips
–
together
with
Samsung
and
Intel
–
developed
CE-‐HTML.
In
2007
that
resulted
in
the
standard
CEA
2014.
This
a
browser
for
televisions
with
what
we
call
‘spatial
navigation’.
This
also
included
a
MPEG4
decoder
for
playing
media
objects.
This
was
really
the
break
through
for
the
standard,
because
High
Definition
TV
also
uses
MPEG4”.
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
69
“No.
To
me
IPTV
is
broadcast
television
that’s
been
done
by
a
vertical
operator
using
IP.
What
we
are
doing
with
Net
TV
is
internet
television.
NET
TV
is
about
everything
but
broadcast.
NET
TV
is
two
things
in
one.
It’s
broadcast
on
the
one
hand,
and
internet
using
a
browser
on
the
other.
Consumers
use
two
cables
to
connect
TV.
One
for
the
TV-‐signal
and
one
for
the
internet
connection.
The
system
is
not
hybrid
yet.
But
of
course
this
is
where
it
is
going:
the
link
between
internet
and
broadcast”.
“Broadcast
will
be
around
for
a
long
time
to
come.
There
are
still
a
lot
of
programs
that
millions
of
people
want
to
see.
It’s
part
of
their
life.
We
think
that
there
are
three
kinds
of
screens:
the
phone
(1
ft),
the
personal
computer
(2ft,
with
complete
interaction)
and
the
TV
(10
ft).
Mobile
and
TV
have
a
lot
of
similarities,
except
that
mobile
has
become
much
more
personal.
On
each
of
these
3
screens
communication,
information
and
entertainment
are
important.
But
on
mobile
communication
is
the
dominant
factor,
on
the
PC
it’s
information
and
on
the
TV
it’s
entertainment”.
“I
think
that
Philips
can’t
be
just
a
supplier
of
hardware.
That’s
a
strategy
that
can’t
be
maintained
in
the
long
run.
The
margin
on
TV’s
has
gone
down
considerably
the
last
years.
To
capitalize
the
added
value
in
TV’s
is
becoming
much
harder.
There
is
overcapacity
in
the
market
and
the
competition
is
killing.
So
the
future
for
us
is
in
the
combination
of
TV
and
services.
Actually
that
is
not
so
much
different
that
the
manufacturing
of
cd-‐players.
There
we
made
more
in
licensing
than
on
the
players
themselves.
Consumer
Electronics
are
worth
nothing
without
content
or
services.
It’s
all
about
the
way
to
get
these
content
and
services
to
the
appliance”.
How do you see the role of Philips in developing standards for IPTV?
“We
can
do
two
things.
Wait
to
see
how
the
technology
develops
to
maturity.
Or
actively
pursuing
corporation
with
other
to
setup
something
together.
We
have
a
two-‐track
policy.
We
talk
to
a
lot
of
stakeholders
within
the
Open
IPTV
Forum.
We
talk
to
broadcasters,
operators,
content
providers
and
colleague
CE-‐manufacturers
from
Japan,
Korea
and
China.
But
while
we’re
doing
this
we
are
also
rolling
out
our
own
technology,
Net
TV”.
The
thin
sis
with
these
standardizing
body’s
that
discussions
tend
to
become
religious
in
character.
But
you
can
talk
endlessly
about
these
issues,
if
you
want
to
go
forward
someone
has
to
do
it.
We
have
built
the
portal
of
Net
TV
on
IBM
web
share.
We
use
open
standards
to
get
more
acceptability.
We
are
prepared
to
share
our
platform
for
reuse”.
“It’s
no
use
without
standards.
The
biggest
compliment
to
us
would
be
if
Panasonic
and
Sony
take
over
our
standard.
I
am
convinced
that
they
want
to,
but
we’re
not
there
yet”.
“We
have
built
a
portal
into
Net
TV
where
we
offer
services
of
others
to
the
consumer.
For
this
you
need
a
good
user
interface.
The
TV
is
not
as
smart
as
a
computer,
but
in
our
platform
the
real
intelligence
is
in
the
backend.
We
have
taken
a
step
back
in
the
value
chain.
We
aggregate
services
and
content
with
the
possibility
to
make
money
with
advertising
and
through
revenue
sharing.
Of
The
role
of
standards
in
the
diffusion
of
IPTV
in
Western
Europe
70
course
the
Electronic
Program
Guide
is
very
important
is
this.
We
see
the
EPG
as
an
extension
of
the
user
interface.
And
in
the
case
of
Net
TV
we
do
claim
ownership
of
the
EPG”.
“For
us
there
are
two
kinds
of
content
providers.
The
ones
who
are
already
in
TV
and
the
ones
that
are
not.
We
want
to
talk
to
both.
For
newspapers
it
is
very
interesting
to
be
on
the
‘third’
screen,
besides
mobile
and
PC.
Don’t
forget
that
2,5
person
watch
a
TV
and
they
are
usually
in
a
well
defined
environment.
Net
TV
offers
newspapers
a
low
cost
opportunity
to
get
on
TV.
On
the
other
hand
you
have
the
companies
that
are
already
on
TV,
the
broadcasters.
A
lot
of
them
feel
like
‘sitting
ducks’,
because
the
fight
for
the
attention
of
the
consumer
is
so
fierce.
That’s
why
they
offer
postponed
viewing
via
internet,
as
long
as
these
viewers
are
in
the
ratings
and
the
revenue
from
advertising
goes
to
them.
But
there
is
a
problem
with
that.
The
cost
of
viewing
through
internet
are
4
times
as
high
as
through
broadcast.
That
is
why
I
can’t
see
broadcast
disappearing
in
the
short
future.
There
is
no
cheaper
system
available”.
What’s your view on the regional differences in the diffusion of IPTV?
“France
stands
out
with
a
reported
6,5
million
IPTV
subscribers.
But
I
don’t
regard
the
French
IPTV
as
real
IPTV.
It’s
just
broadcast
over
IP.
The
geographical
differences
see
to
have
a
historic
background.
For
instance,
in
the
Netherlands
it’s
a
political
issue.
Here
there
is
no
open
market.
De
broadcasters
have
become
addicted
to
the
operators.
The
operators
pay
broadcasters
like
RTL
and
SBS
for
their
content.
In
China
TV
is
mostly
terrestrial.
There
is
an
opportunity
for
interactive
TV
in
China
because
the
normal
TV
is
so
incredibly
boring.
The
United
States
is
the
country
of
exclusivity.
But
the
differences
between
countries
will
be
diminished.
Internet
will
become
the
big
equalizer
in
this
regard”.
How
about
the
comparison
between
the
diffusion
of
Blu-‐Ray
and
IPTV?
Blu-‐Ray
has
finally
taken
off
after
there
was
a
standard
accepted
by
the
manufacturers.
“Yes,
I
do
see
a
lot
of
similarities.
NET
TV
can
become
that
standard
as
far
as
I’m
concerned.
And
I’m
not
just
saying
this
because
I
work
for
Philips.
Net
TV
has
been
put
together
exceptionally
well.
And
it
uses
existing
technology
and
open
standards”.
The role of standards in the diffusion of IPTV in Western Europe