The evolving IPTV and VAS model for the telecoms operator
Industry convergence is increasing the pressure on telcos to refine the role they wish to play in content markets. Historically, telcos have participated in two of these content markets. Mobile operators have offered value-added services (VASs) such as portals, ringtones, wallpapers, and premium voting or competition lines; while fixed-line operators have offered premium broadcast services such as pay-per-view video on-demand (VoD) and subscription IPTV services. Mobile operators have had more success in the VASs market than their fixed-line counterparts in the premium broadcast market, as fixed-line operators have had to compete with established cable and satellite operators that have responded to their entry by pushing deeper into quad-play markets. However, the VASs model is now also facing significant competition as the OEM-controlled app store challenges the operator controlled portal as the primary channel for content delivery on mobile devices.
This report reviews the evolving market for content services, examines the causes of strategic failure and success in the case studies of BT and Orange, and offers a framework for telecoms operators looking to develop their business-to-consumer (B2C) content service strategy and vendors looking to enable this market.
This report reviews the evolving market for content services, examines the causes of strategic failure and success in the case studies of BT and Orange, and offers a framework for telecoms operators looking to develop their business-to-consumer (B2C) content service strategy and vendors looking to enable this market.
Executive summary
In a nutshell
Ovum view
Telcos must play to their strengths
Key messages for telcos
Refining the content business model
Emerging markets remain an opportunity
The indirect value of premium content services
Premium content – a necessity, but no longer a differentiator
Content partnership model to dominate for telcos
Key messages for technology vendors and systems integrators
Product evolution – the move to multi-screen services
Traffic management for the IP video explosion
Extending the capability sets for OSS/BSS platforms
The evolving market for premium content services
Disruption and convergence in the content value chain
Telcos entering the pay-TV market
Competitive landscape and impact on telcos
Considerations when launching new content services
Pay-TV and mobile content market dynamics from the perspective of the telecoms operator
Why do telcos choose to operate in content markets?
Defining the telco business model
The SMART player play
Delivering on customer experience
Sweating the asset
Entering content markets as a defensive reaction
Telcos’ hands forced by non-traditional competitors
Creating growth in saturated markets and fighting churn
Case studies
Orange France
Orange’s positioning in the content value chain
Orange’s content strategy
Orange’s content development timeline
Orange’s TV strategy
Orange TV performance
Orange Mobile content
BT
BT’s position in the content value chain
BT Vision as a content platform for new services
BT Vision performance
Enabling tools for new content services
Multi-screen – multiple service options
CDNs and their role in rebalancing the video traffic load on the network
Technical considerations
Appendix
Methodology
In a nutshell
Ovum view
Telcos must play to their strengths
Key messages for telcos
Refining the content business model
Emerging markets remain an opportunity
The indirect value of premium content services
Premium content – a necessity, but no longer a differentiator
Content partnership model to dominate for telcos
Key messages for technology vendors and systems integrators
Product evolution – the move to multi-screen services
Traffic management for the IP video explosion
Extending the capability sets for OSS/BSS platforms
The evolving market for premium content services
Disruption and convergence in the content value chain
Telcos entering the pay-TV market
Competitive landscape and impact on telcos
Considerations when launching new content services
Pay-TV and mobile content market dynamics from the perspective of the telecoms operator
Why do telcos choose to operate in content markets?
Defining the telco business model
The SMART player play
Delivering on customer experience
Sweating the asset
Entering content markets as a defensive reaction
Telcos’ hands forced by non-traditional competitors
Creating growth in saturated markets and fighting churn
Case studies
Orange France
Orange’s positioning in the content value chain
Orange’s content strategy
Orange’s content development timeline
Orange’s TV strategy
Orange TV performance
Orange Mobile content
BT
BT’s position in the content value chain
BT Vision as a content platform for new services
BT Vision performance
Enabling tools for new content services
Multi-screen – multiple service options
CDNs and their role in rebalancing the video traffic load on the network
Technical considerations
Appendix
Methodology
LIST OF TABLES
Table 1: Types of controlling entity, their assets, and risks
Table 1: Types of controlling entity, their assets, and risks
LIST OF FIGURES
Figure 1: SMART and LEAN player functions
Figure 2: Orange’s positioning in the content value chain
Figure 3: Orange B2C multi-platform service portfolio
Figure 4: Orange’s content strategy – three value elements
Figure 5: Orange content services strategic timeline
Figure 6: Orange France’s TV performance 2005-present
Figure 7: Orange France’s mobile content portfolio
Figure 8: BT’s positioning in the content value chain
Figure 9: The growth of Freeview, 2003-06
Figure 10: BT’s development of its Vision platform
Figure 11: BT Vision performance, 2007-present
Figure 1: SMART and LEAN player functions
Figure 2: Orange’s positioning in the content value chain
Figure 3: Orange B2C multi-platform service portfolio
Figure 4: Orange’s content strategy – three value elements
Figure 5: Orange content services strategic timeline
Figure 6: Orange France’s TV performance 2005-present
Figure 7: Orange France’s mobile content portfolio
Figure 8: BT’s positioning in the content value chain
Figure 9: The growth of Freeview, 2003-06
Figure 10: BT’s development of its Vision platform
Figure 11: BT Vision performance, 2007-present
