IPTV is Dead, Long Live IPTV

I am often asked "what is the future of IPTV?" Without hesitation I reply that no one will be talking about IPTV five years from now. I’m not predicting the complete disappearance of this vibrant corner of the pay-TV industry. I’m simply observing the growth and influence of IP technologies. Within every sector of the video business around the world, operators are seeking the most cost-effective method to organise and monetise digital video delivery. At Verimatrix, we believe that all video delivery systems will be simply be referred to as digital TV, and IP will underpin almost every aspect regardless of if it is a telco TV network or a hybrid satellite/broadband combination.

Obviously different network topologies have historically lent themselves better to deliver different services. We know one-way broadcast satellite delivery won’t disappear primarily because it is by far the most scalable way to deliver point to multi-point broadcast TV channels. But it is interesting to watch how that industry is planning for IP service integration. One clue is the Ethernet jack featured in the back of almost every current generation set-top box. In the US, while it is known that Verizon’s popular FiOS service is not a pure IPTV deployment, it has moved along way from pure cable TV technology roots to deliver a combination of video-on-demand over IP and broadcast over fibre. All the standards development for mobile TV also combines a telecommunications network and a forward-only broadcast network, both aspects of which have IP at their core. And of course we have the increasingly competitive pay-TV systems being run by telcos around that world that are designed to fully exploit IP from the outset.

These examples highlight how the integration of IP networks can provide compelling TV services, and open up a new world of services that offer “prime time on my time” for subscribers. This trend towards IP has been called platform “convergence.” Yet I tend to think this trend is less about convergence and more about the basic drive to streamline operational business models.

Streamlining Operations
Throughout the head-end equipment delivery network and, of course, inside the multimedia savvy home, IP has emerged as the common building block.

Inside the head-end, IP networking infrastructure increasingly provides back-end transport for both data and control. The undeniable gains in price and performance of IP-based equipment stimulated by IT and Internet services demand, have changed the economics of video management and the architecture of such systems.

For the delivery network, pay-TV businesses are not as worried as technologists about the nature of the “pipe” or shape of connector that enables the delivery of their services to subscribers; and we know consumers certainly do not care. We are seeing the increasing popularity of IP technologies being recognized by video-oriented standards bodies. DVB Multi-Protocol Encapsulation (MPE), DOCSIS, DVB-H, WiFi and now WiMax have all weaved in IP-based variants for operators to take full advantage of cost and operational efficiencies.

Home networking is probably the greatest example of how IP technology has essentially won the battle of solving more local video challenges. In fact, Intel’s Director of Global Content Policy recently urged the US FCC to replace outdated set-top box requirements with a standards-based IP connector that is capable of “meaningful home networking.” He argued that an IP-based home networking connector will enable consumers to leverage the set-top as their home and personal network, and named IP as the very foundation of digital convergence.

Extending the Power of IP
So if all operators integrate the advantages of IP into their delivery networks, how can they differentiate their services? This is where Verimatrix comes to the fore. Fully exploiting IP-based technologies also involves building out the business infrastructure, which includes IPTV security. Software-based, IP-centric content security solutions provide robust, unified protection without requiring dedicated hardware. Operators benefit from downloadable and renewable security that also offers flexibility to protect content across any type of network – cable, satellite, IPTV, hybrid, mobile, over-the-top, etc.

Beyond cost advantages, IP content security can help create new revenue streams with tiered pricing based on a host of variables, such as usage rights and the value of the content, for unlimited business model possibilities.

Verimatrix’s leadership position in IPTV content security does not limit our solutions to a niche market. In fact we are well-positioned, with our solutions menu and technology roadmap, to provide content security that helps define not just IPTV, but the whole new world of digital pay-TV.