25 November 2008
Internet protocol television (IPTV) is the next wave of media that is expected to become popular in the Middle East as a complement to traditional television.
IPTV works as an internet protocol used over a network infrastructure to deliver digital television via the internet. In other words, it is streaming, digital, high definition television, available on a customised and on-demand basis.
"The growth prospects of IPTV are high, despite its technology being relatively new in the Middle East, especially in GCC countries, and the small market size," said Simone Sassoli, Vice-President of worldwide sales and broadband networks, Emea, of US-based SeaChange - a pioneer in IPTV technology.
"At present, the number of our subscribers for this technology in the Middle East is a couple of thousands but with the way things are going, within 12 months this number is expected to reach a million.
"A UAE-based telecommunications company used this technology on a trial basis in 2006 and was satisfied with the results. Though this is new for many telecommunications companies in the region, the concept is gaining momentum."
IPTV technology allows TV broadcasters, content providers and advertisers to converge all their content together on a broadband platform to personalise contact and put interactive applications around it. "The technology is applicable to a number of broadband, mobile and traditional TV providers and we have been witnessing growing interest among consumers who want to have content available on the three devices," said Sassoli.
"The GCC is a potential emerging market for IPTV. We see three big constituent parties, which are involved in the business of mass media television - customers of telecommunication companies, content providers and advertisers," said Simon McGrath, SeaChange's Chief Marketing Officer. "The three parties could come together to generate the most value for an advertisement. Consumer and content will interact better with VOD (video on demand) and the service provider will add value among the three parties."
McGrath added, though, that for the service providers in the region to make returns on their investment, they needed to understand how to work with such content providers.
"We are sensing huge interest in the region for IPTV. We have started acquiring English and Arabic content for GCC countries to try and bring down the cost of entry into IPTV for service providers. They know the benefits will outweigh the cost," said McGrath. "Several UK-based satellite channel networks wanted to make their content available in a VOD personalised TV environment, and this technology will meet their needs and expectations."
McGrath said prospects for growth for IPTV were high in the GCC despite the current international financial crisis. "Content is expensive and the more of it, the higher the cost. That is why cheap, high quality and functional setup boxes will be needed," he said.
Eugene Sarmiento, Head of Sales, IPTV, for Sweden-based Ericsson, said: "The average TV viewing time in the Middle East is among the highest in the world, at four hours and 22 minutes per day. The amount of time people spend on mobiles and PCs has not affected their TV viewing habits. IPTV will be converging the three devices together. We see the Middle East as a fresh market for such technology."
Internet protocol television (IPTV) is the next wave of media that is expected to become popular in the Middle East as a complement to traditional television.
IPTV works as an internet protocol used over a network infrastructure to deliver digital television via the internet. In other words, it is streaming, digital, high definition television, available on a customised and on-demand basis.
"The growth prospects of IPTV are high, despite its technology being relatively new in the Middle East, especially in GCC countries, and the small market size," said Simone Sassoli, Vice-President of worldwide sales and broadband networks, Emea, of US-based SeaChange - a pioneer in IPTV technology.
"At present, the number of our subscribers for this technology in the Middle East is a couple of thousands but with the way things are going, within 12 months this number is expected to reach a million.
"A UAE-based telecommunications company used this technology on a trial basis in 2006 and was satisfied with the results. Though this is new for many telecommunications companies in the region, the concept is gaining momentum."
IPTV technology allows TV broadcasters, content providers and advertisers to converge all their content together on a broadband platform to personalise contact and put interactive applications around it. "The technology is applicable to a number of broadband, mobile and traditional TV providers and we have been witnessing growing interest among consumers who want to have content available on the three devices," said Sassoli.
"The GCC is a potential emerging market for IPTV. We see three big constituent parties, which are involved in the business of mass media television - customers of telecommunication companies, content providers and advertisers," said Simon McGrath, SeaChange's Chief Marketing Officer. "The three parties could come together to generate the most value for an advertisement. Consumer and content will interact better with VOD (video on demand) and the service provider will add value among the three parties."
McGrath added, though, that for the service providers in the region to make returns on their investment, they needed to understand how to work with such content providers.
"We are sensing huge interest in the region for IPTV. We have started acquiring English and Arabic content for GCC countries to try and bring down the cost of entry into IPTV for service providers. They know the benefits will outweigh the cost," said McGrath. "Several UK-based satellite channel networks wanted to make their content available in a VOD personalised TV environment, and this technology will meet their needs and expectations."
McGrath said prospects for growth for IPTV were high in the GCC despite the current international financial crisis. "Content is expensive and the more of it, the higher the cost. That is why cheap, high quality and functional setup boxes will be needed," he said.
Eugene Sarmiento, Head of Sales, IPTV, for Sweden-based Ericsson, said: "The average TV viewing time in the Middle East is among the highest in the world, at four hours and 22 minutes per day. The amount of time people spend on mobiles and PCs has not affected their TV viewing habits. IPTV will be converging the three devices together. We see the Middle East as a fresh market for such technology."
By Rami Eljundi
© Emirates Business 24/7 2008
