IPTV IN THE UNITED STATES AND UNITED KINGDOM: WHAT’S NEXT FOR THE INDUSTRY

IPTV in the United States and United Kingdom: What’s Next for the Industry

IPTV in the United States and United Kingdom: What’s Next for the Industry

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1.Understanding IPTV

IPTV, or Internet Protocol Television, is gaining increasing influence within the media industry. In stark contrast to traditional TV broadcasting methods that use costly and primarily proprietary broadcasting technologies, IPTV is transmitted over broadband networks by using the same Internet Protocol (IP) that powers millions of PCs on the modern Internet. The concept that the same shift towards on-demand services is anticipated for the era of multiscreen TV consumption has already grabbed the attention of numerous stakeholders in the technology convergence and growth prospects.

Consumers have now embraced watching TV programs and other media content in a variety of locations and on multiple platforms such as mobile phones, computers, laptops, PDAs, and additional tools, aside from using good old TV sets. IPTV is still in its infancy as a service. It is undergoing significant growth, and different commercial approaches are emerging that could foster its expansion.

Some assert that economical content creation will probably be the first type of media creation to reach the small screen and play the long tail game. Operating on the economic aspect of the TV broadcasting pipeline, the current state of IPTV hosting and services, however, has several clear advantages over its rival broadcast technologies. They include high-definition TV, flexible viewing, custom recording capabilities, audio integration, online features, and immediate technical assistance via alternate wireless communication paths such as cell phones, PDAs, global communication devices, etc.

For IPTV hosting to work efficiently, however, the Internet edge router, the core switch, and the IPTV server consisting of video encoders and blade server setups have to collaborate seamlessly. Dozens regional and national hosting facilities must be highly reliable or else the signal quality deteriorates, shows could disappear and fail to record, chats stop, the picture on the TV screen is lost, the sound becomes choppy, and the shows and services will not work well.

This text will discuss the competitive environment for IPTV services in the UK and the US. Through such a detailed comparison, a series of meaningful public policy considerations across various critical topics can be uncovered.

2.Media Regulation in the UK and the US

According to legal principles and associated scholarly discussions, the regulatory strategy adopted and the details of the policy depend on perspectives on the marketplace. The regulation of media involves competition-focused regulations, media ownership and control, consumer safeguarding, and the defense of sensitive demographics.

Therefore, if we want to regulate the markets, we need to grasp what media markets look like. Whether it is about proprietorship caps, competition analysis, consumer rights, or child-focused media, the regulator has to have a view on these markets; which media markets are seeing significant growth, where we have competitive dynamics, integrated vertical operations, and cross-sector proprietorship, and which media markets are slow to compete and ripe for new strategies of market players.

Put simply, the landscape of these media markets has already evolved to become more fluid, and only if we consider policy frameworks can we predict future developments.

The expansion of Internet Protocol Television across regions accustoms us to its adoption. By combining a number of conventional TV services with innovative ones such as interactive digital features, IPTV has the potential to be a significant element in boosting remote area viability. If so, will this be enough to prompt regulatory adjustments?

We have no data that IPTV has an additional appeal to individuals outside traditional TV ecosystems. However, a number of recent changes have slowed down IPTV's growth – and it is these developments that have led to dampened forecasts about IPTV's future.

Meanwhile, the UK implemented a lenient regulatory approach and a forward-thinking collaboration with the industry.

3.Market Leaders and Distribution

In the UK, BT is the key player in the UK IPTV market with a 1.18% market share, and YouView has a 2.8% share, which is the context of single and dual-play offerings. BT is typically the leader in the UK as per reports, although it experiences minor shifts over time across the 7–9% range.

In the United Kingdom, Virgin Media was the pioneer in launching IPTV based on digital HFC networks, with BT entering later. Netflix and Amazon Prime are the strongest OTT services in the UK IPTV market. Amazon has its own streaming device service called Amazon Fire TV, akin to Roku, and has just entered the UK. However, Netflix and Amazon are not available in any telecommunications provider networks.

In the American market, AT&T leads the charts with a market share of 17.31%, exceeding Verizon’s FiOS at 16.88%. However, considering only IPTV services over DSL, the leader is CenturyLink, followed by AT&T and Frontier, and Lumen.

Cable TV has the overwhelming share of the American market, with AT&T drawing 16.5 million subscribers, mostly through its U-verse service and DirecTV service, which also operates in the Latin American market. The US market is, therefore, divided between the major legacy telecom firms offering IPTV services and modern digital entrants.

In Western markets, leading companies use a converged service offering or a loyal customer strategy for the majority of their marketing, offering three and four-service bundles. In the United States, AT&T, Verizon, and Lumen depend on their proprietary infrastructure or traditional telephone infrastructure to offer IPTV services, though to a lesser extent.

4.IPTV Content and Plans

There are variations in the content offerings in the IPTV sectors of the UK and US. The range of available programming includes real-time national or local shows, on-demand programs and episodes, pre-recorded shows, and original shows like TV shows or movies only available through that service that aren’t sold as videos or aired outside the platform.

The UK services offer traditional rankings of channels akin to the UK cable platforms. They also include medium-tier bundles that contain important paid channels. Content is grouped not just by genre, but by distribution method: terrestrial, satellite, Freeview, and BT Vision VOD.

The key differences for the IPTV market are the plan types in the form of static plans versus the more flexible per-channel approach. UK IPTV subscribers can select add-on subscription packages as their preferences evolve, while these channels come pre-bundled in the US, in line with a user’s initial preset contract.

Content partnerships underline the varied regulatory frameworks for media markets in the US and UK. The age of shrinking windows and the evolving industry has significant implications, the most direct being the business standing of the UK’s dominant service provider.

Although a recent newcomer to the crowded and competitive UK TV sector, Setanta is poised to capture a broad audience through its innovative image and securing top-tier international rights. The strength of the brands is a significant advantage, alongside a product that has a affordable iptv service provider structure and offers die-hard UK football supporters with an attractive additional product.

5.Technological Advancements and Future Trends

5G networks, in conjunction with millions of IoT devices, have transformed IPTV evolution with the integration of AI and machine learning. Cloud computing is strongly supporting AI systems to implement new capabilities. Proprietary AI recommendation systems are being widely adopted by streaming services to engage viewers with their own distinctive features. The video industry has been enhanced with a modernized approach.

A higher bitrate, by increasing resolution and frame rate, has been a main objective in enhancing viewer engagement and attracting subscribers. The advancements in recent years were driven by new standards established by industry stakeholders.

Several proprietary software stacks with a reduced complexity are close to deployment. Rather than pushing for new features, such software stacks would allow video delivery services to optimize performance to further improve customer satisfaction. This paradigm, like the previous ones, hinged on customer perception and their expectation of worth.

In the near future, as technological enthusiasm creates a level playing field in user experience and industry growth reaches equilibrium, we foresee a focus shift towards service-driven technology to keep older audiences interested.

We emphasize a couple of critical aspects below for the two major IPTV markets.

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

2. We see immersive technologies as the main catalysts behind the rising trends for these areas.

The constantly changing audience mindset puts analytics at the core for every stakeholder. Legal boundaries would limit straightforward access to customer details; hence, privacy regulations would likely resist new technologies that may leave their users vulnerable to exploitation. However, the present streaming landscape indicates a different trend.

The digital security benchmark is presently at an all-time low. Technological leaps and bounds have made security intrusions more digitally sophisticated than a job done hand-to-hand, thereby benefiting cybercriminals at a higher level than traditional thieves.

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

References:

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

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

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

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