This slideshow explains IPTV technology and services. You will learn how television can be sent through managed IP networks (e.g. TelcoTV DSL) or unmanaged IP networks (Internet TV).
01/23/13 This tutorial explains how and why people and companies are sending television programs through IP data networks . You will discover how global television services are already available through broadband networks such as the Internet and how you can use standard television to watch global television channels using analog television adapter boxes. The fundamentals of how IPTV works is provided. You will discover how IP television can be watched on different types of viewing devices such as standard televisions with adapters, dedicated IP televisions, multimedia computers and mobile telephones. IPTV service allows viewers to have more control of Internet television services . This control ranges from instant service activation to real time television on demand controls. Some of the advanced Internet television features such as personal media channels, anywhere television extensions, global television channels and multimedia programs are described. In addition to the traditional ways of television channel selection, you will learn about new ways television channels can be search and selected using interactive electronic programming guides (EPGs) . The different types of media formats that are used for IP television services are explained along with their control protocols. Not all IPTV systems and services are the same. There are cost and quality tradeoffs along with common problem areas and risks. You will discover how the audio and video service quality can range from poor to above the quality that is already delivered to standard TV. Because each IP television viewer has a unique address, this allows advertising messages to be sent to specific viewers (addressable advertising). The ability to direct advertising messages to specific target audiences (addressable advertising) is more valuable to companies than traditional broadcast advertising and this may result in reduced viewing costs.
01/23/13 IPTV Expert Lawrence Harte is the editor and publisher of IPTV Magazine , Mobile Video Magazine, and author of over 100 books on communication technologies (more than 10 on IPTV systems and technologies). Mr. Harte has Interviewed over 2600 companies which produce IPTV products and provide services. He has designed, setup, and managed products and invented patents on communication technologies. Mr. Harte has worked for companies including Ericsson /General Electric, Audiovox/Toshiba and Westinghouse and consulted for hundreds of other companies. Holds many degrees and certificates including an Executive MBA from Wake Forest University and a BSET from the University of the State of New York.
01/23/13 What is IPTV - IPTV is the sending of television signals through packet data networks that use IP addressing (the data network itself does not need to be IP based). IPTV Services - IPTV services are a mix of traditional and new television and multimedia services. IPTV systems normally start by offering similar programs to cable tv and then quickly add thousands of new programs from around the world. IPTV services can include two-way TV (community TV), interactive ads, and television stores.. IPTV Viewing Devices - IPTV systems may be setup to allow viewing IPTV programs on traditional (TV) and other types of devices (such as multimedia PCs and mobile telephones). IP Video - IP video is the sending of moving pictures over packet data communication systems. IP video involves converting video (analog or digital) into packet data form. IP video has some significant differences from broadcast digital video. IP Audio - IP audio is the sending of sound signals over packet data communication systems. IP audio involves converting audio (analog or digital) into packet data form. IP audio has some significant differences from broadcast digital audio. MPEG - MPEG is a system that allows for the mixing, transmission, and controlling video, audio, and data so the user can have a TV like+ experience. IPTV Systems - IPTV systems are the combination of media and communication equipment with software programs (such as middleware and rights protection software). Home Media Networks - Getting the signals around the house. IPTV Security - IPTV systems are usually designed to control service rights and protect content. Without a good content protection system, content owners may not allow distribution of their programs (movies and shows) through the IPTV system. IPTV Economics - IPTV economics is the revenue sources and the associated costs for an IPTV system operator. In 2009, many systems have a cable TV look alike business model which may be unprofitable. New features and revenue sources for IPTV systems will allow operators to shift to targeted advertising and television commerce systems resulting in a windfall profit for some successful companies.
01/23/13 IPTV systems link content providers (such as TV networks) to consumers . An IPTV system can transfers digital content (such as TV programs) through IP data networks (such as the Internet) to devices that can receive and display IP digital video (such as standard televisions that have a set top box). IPTV content sources can range from live TV networks (such as CNN) to niche on-demand content from micro-producers. IPTV systems can delivery an unlimited number of channels as each television set only require one TV channel connection which can be linked to any other TV source the IPTV operator can provide. IPTV Service Providers - IPTV service providers obtain the rights to transmit media programming to their customers . While IPTV service providers may focus on provide TV services in geographic areas (such as where they own or control TV distribution rights), IPTV service providers can technically provide programming anywhere in the world they can reach customers through a broadband data connection. IP Distribution Systems - IP distribution systems transfer media programs from the content sources to viewing devices . There are many types of systems that can distribute IP data packets which include telecom, wireless, cable TV systems, power companies (data over power line), and competitive access providers (such as new optical networks). IPTV Viewing Devices - IPTV viewing devices can receive media in IP form and convert it into media that can be viewed by the user . IP viewing devices range from standard televisions that use IP set top boxes to convert IP video signals into a format that can be viewed on a standard television to mobile telephones with digital video viewing capabilities. This figure shows the how IPTV systems are composed of content providers, distribution networks, viewing devices, and IPTV service operators. The content providers include existing television networks, on demand content providers (content aggregators), and independent content provider companies. This example shows a distribution networks that uses many types of systems to transfer IP video packets from the content source to the viewing devices. IPTV viewing devices include standard televisions (with adapters), multimedia computers, and multimedia mobile devices. The IPTV system operator manages how customers can connect to the system which services they can receive.
Switched video is the process that can dynamically setup (on demand) video signal connections between two or more points. SVS services can range from the setup of data connections that allow video transfer to the organization and management of video content and the delivery of video programs. Broadband Connection - A broadband connection is a communication link from a sender to a receiver that can transport data at 1 Mbps or faster . The broadband connection usually allows for multiple channels (logical channels) to share the same communication connection . IP Video Adapter - A video adapter is a card, component or adapter that can convert data into a graphics format that can be displayed to a user. IPTV systems commonly use IP set top boxes (IP STBs) to adapt IP media ( audio and video ) channels into a format that can be used by viewing devices (such as televisions). Media Servers - A media server is a computing device that can process requests for and deliver digital media . Media servers may access stored content or they may be gateways that adapt incoming media such as live media streams (live TV programs). This figure shows how a basic IPTV system can be used to allow a viewer to have access to many different media sources. This diagram shows how a standard television is connected to a set top box (STB) that converts IP video into standard television signals. The STB is the gateway to an IP video switching system. This example shows that the switched video service (SVS) system allows the user to connect to various types of television media sources including broadcast network channels, subscription services, and movies on demand. When the user desires to access these media sources, the control commands (usually entered by the user with a television remote control) are sent to the SVS and the SVS determines which media source the user desires to connect to. This diagram shows that the user only needs one video channel to the SVS to have access to a virtually unlimited number of video sources.
First generation IPTV is proof of concept. Scalability and reliability have been proven. Initial First Generation IPTV systems: - 50 channels of local programming - 50 channels of premium content - Optional movie channels - priced like cable TV Second Generation IPTV systems: - hundreds or thousands of channels (e.g. Akimbo - over 7,000 movies on demand) - advanced features such as multimedia programming guides
IPTV services are the delivery of media or programs to viewing devices (televisions) whereby the signals travel through IP data networks . IPTV services include subscription services (paid access), pay per view (on demand), and advertising. Subscription Services - Subscription services are value-added services that provide or entitle a customer to receive or gain access to services . Subscription services are typically provided with no fixed termination date and subscription users are often billed periodically (e.g. monthly) for the subscription service. Pay Per View (PPV) - Pay per view services is the providing of television programming such as sports, movies, and other entertainment video that customers pay per view on a per event basis for a fee. PPV services may allow end users to interactively request and receive television channels or programs. These services are from previously stored media (entertainment movies or education videos) to accessing live connection (news events in real time). TV Advertising - IPTV advertising is the communication of messages or media content to one or more potential customers who use IPTV enabled devices. IPTV advertising combines traditional television advertising (one way video commercials) and interactive Internet advertising. TV advertising on IPTV systems can be in traditional push for (commercial inserts) or in advanced form (addressable and interactive form). This figure shows typical television services that create billing and service usage records for subscription and advertising services. This diagram shows that television subscription services include access to local content, live network programming and pay per view (on demand) services. This diagram also shows that usage records may be created for the selection and insertion of commercials and interaction with advertisements. This example shows that the money that is paid by the advertiser may go to the IPTV service provider.
IPTV viewing devices are audio/visual equipment or adapters convert IP media signals into a form that can be controlled and viewed by users . The key types of IP television viewing devices include standard televisions that use set top boxes, multimedia computers, multimedia mobile telephones, and IP televisions. IP Set Top Boxes (IP STBs) - An IP set top box is an electronic device that adapts IP television data into a format that is accessible by the end user. The output of an IP set top box can be a television RF channel (e.g. channel 3), video and audio signals or digital video signals . IP set top boxes are commonly located in a customer's home to allow the reception of IP video signals on a television or computer. Multimedia Computers - A multimedia computer is a data processing device that is capable of using and processing multiple forms of media such as audio, data and video. Because many computers are already multimedia and Internet ready, it is often possible to use a multimedia computer to watch IP television through the addition or use of media player software . The media player must be able to find and connect to IP television media servers, process compressed media signals, maintain a connection, and process television control features. IP Television Sets - An IP television set s a viewing device that is specifically designed to view digital television signals through the IP data networks (such as the Internet) without the need for a signal conversion set top box . IP televisions contain embedded software that allows them to initiate and receive television through the data networks using standard protocols such as IGMP and SIP. Multimedia Mobile Telephones - Multimedia mobile telephones are wireless communication devices that are capable of receiving and displaying digital media such as digital video and digital audio. Multimedia mobile telephones contain one or more signal receivers (such as mobile phone and broadcast television receivers) along with embedded software that allows them to receive and decode digital media. Multimedia mobile telephones may require an added media player to receive and view IP video signals . This figure shows several types of IP television viewing devices. This diagram shows that some of the options for viewing devices include multimedia computers, television adapters, IP Televisions and mobile telephones. Multimedia computers (desktops and laptops) allow some multimedia computers to watch Internet television programs without the need for adapters provided they have the multimedia browsers that have the appropriate media plug-ins. Television adapters connect standard television RF or video and audio connectors to data jacks or wireless LAN connections. IP Televisions can be directly connected to data jacks or wireless LAN connections. Mobile telephones that have multimedia capabilities and if the mobile telephone system they use provide the broadband web along with the necessary media gateways.
Internet Protocol video ( IP Video ) is the representation of sequential image information in digital (discrete level) formats that are transferred using IP data packets (datagrams). The use of IP video allows for more simple storage, processing, and transmission of video signals through data networks. IP video systems create or receive digitized video signals , compress the digital video, packetize the video and add destination addressing and control information to each packet, manage the transfer of packets through a data network, receive and re-sequence the data packets , and convert the data packets ( render ) into a form that can be viewed by people . Video Digitization - Video digitization is the conversion of video component signals or composite signal into digital form through the use of an analog-to-digital (pronounced A to D) converter. The A/D converter periodically senses (samples) the level of the analog signal and creates a binary number or series of digital pulses that represent the level of the signal. Video Compression - Video compression is the process of reducing the amount of transmission bandwidth or data transmission rate by analog processing with digital coding techniques . When compressed, a video signal can be transmitted on circuits with relatively narrow channel bandwidth or using data rates 50 to 200 times lower than their original uncompressed form. Some of the common types of video compression used in mobile devices include 3GPP, MPEG (MPG), MPEG-4 (mp4), Quicktime (MOV), Windows (WMV and AVI), Real (rm) and Flash (SWF/FLV). IP Video Packet Transmission - IP video packet transmission is the process of addressing, transferring, and controlling IP video packets as they pass through switching points in a packet data network. A destination address is added to the header part of each packet before it is sent into the packet data network. Control information (such as the maximum number of transfers or hops that may occur) is also added to the packet header. IP video transmission usually includes the use of control protocols that are specifically designed to control the bandwidth and timing needs for the sending of video data packets. Video Packet Sequencing - Video packet sequencing is the process of organizing packets into a succession that is in a usable format for the system. Packet sequencing for transmission is not necessarily the same sequence that is required by the receiver or decoder. Video Rendering - Video rendering is the process of converting media (such as IP data packets) into a form that a human can view . IP video rendering may involve adapting the adjusting the media signal to overcome errors in transmission such as repeating the previous image when lost packets occur. This figure shows how video can be sent via an IP transmission system. This diagram shows that an IP video system digitizes and reformats the original video, codes and/or compresses the data, adds IP address information to each packet, transfers the packets through a packet data network, recombines the packets and extracts the digitized video, decodes the data and converts the digital video back into its original video form.
Internet Protocol audio ( IP Audio ) is the representation of audio information in digital (discrete level) formats that are transferred using IP data packets (datagrams). The use of IP audio allows for more simple storage, processing, and transmission of audio signals through data networks. IP audio systems create or receive digitized audio signals , compress the digital audio, packetize the audio and add destination addressing and control information to each packet, manage the transfer of packets through a data network, receive and re-sequence the data packets , and convert the data packets ( render ) into a form that can be heard by people . Audio Digitization - Audio digitization is the conversion of sound signals into digital form . To convert an analog audio signal to digital form, the analog signal is digitized by using an analog-to-digital (pronounced A to D) converter. The A/D converter periodically senses (samples) the level of the analog signal and creates a binary number or series of digital pulses that represent the level of the signal. The typical sampling rate for the conversion of analog audio ranges from 8,000 samples per second (for telephone quality) to 44,000 samples per second (for music quality). Audio Compression - Audio compression is the process of reducing the amount of audio transmission bandwidth or data transmission rate by analog processing with digital coding techniques . When compressed, an audio signal can be transmitted on circuits with relatively narrow channel bandwidth or using data rates 2 to 8 times lower than its original uncompressed form . IP Audio Packet Transmission - IP audio packet transmission is the process of addressing, transferring, and controlling IP audio packets as they pass through switching points in a packet data network. A destination address is added to the header part of each packet before it is sent into the packet data network. Control information (such as the maximum number of transfers or hops that may occur) is also added to the packet header. IP audio transmission usually includes the use of control protocols that are specifically designed to control the timing and lost packet recovery needs for the sending of audio data packets. Audio Packet Sequencing - Audio packet sequencing is the process of organizing packets into a succession that is in a usable format for the system. Audio packet sequencing for transmission is not necessarily the same sequence that is required by the receiver or decoder. Audio Rendering - Audio rendering is the process of converting media (such as IP data packets) into a form that a human can hear . IP audio rendering may involve adapting the adjusting the media signal to overcome errors in transmission such as repeating the previous sound segment when lost packets occur. This figure shows how audio can be sent via an IP transmission system. This diagram shows that an IP audio system digitizes and reformats the original audio, codes and/or compresses the data, adds IP address information to each packet, transfers the packets through a packet data network, recombines the packets and extracts the digitized audio, decodes the data and converts the digital audio back into its original video form.
Moving picture experts group ( MPEG ) standards are digital video encoding processes that coordinate the transmission of multiple forms of media (multimedia). Moving picture experts group (MPEG) is a working committee that defines and develops industry standards for digital video systems . These standards specify the data compression and decompression processes and how they are delivered on digital broadcast systems. MPEG is part of International Standards Organization (ISO). Media Multiplexing - Multiplexing is a process that combines multiple communication (voice and/or data) channels into a single transmission signal or channel. Media multiplexing for IPTV systems involves combining audio, video, data (such as closed captioning), and other information into a single media stream (channel). Program Multiplexing - Program multiplexing is a process that combines multiple program channels (such as television channels) onto a single transmission path (such as a broadcast channel). Program multiplexing for an MPEG system involves coordinating and merging small portions of programs into a common transmission path. Program multiplexing is not usually needed for direct connections to end users as they only require a single program channel. Program multiplexing is commonly used for connections from media sources (such as networks or cable companies). Program Tables - Program tables are groups of structured information that describe media programs , program components or other information that is related to the delivery and decoding of programs. MPEG tables can be used by electronic programming guides (EPG) to inform the user of the available channels. The EPG is the interface (portal) that allows a customer to preview and select from possible lists of available content media. MPEG Profiles - MPEG profiles are a particular implementation or set of required protocols and actions that enables the providing of features and services for particular MPEG applications. These applications range from providing standard television services over a broadcast system to providing video services on a mobile wireless network. The use of profiles allows an MPEG device or service to only use or include the necessary capabilities (such as codec types) that are required to deliver media to the applications. MPEG Levels - MPEG levels are the amount of capability that a MPEG profile can offer . MPEG levels can range from low level (low resolution) to high level (high resolution). This figure shows the basic operation of an MPEG system. This diagram shows that the MPEG system allow multiple media types to be used (voice, audio and data), codes and compresses each media type, adds timing information and combines (multiplexes) the media channels into a MPEG program stream. This example shows that multiple program streams (e.g. television programs) can be combined into a transport channel. When the MPEG signal is received, the program channels are separated (demultiplexed), individual media channels are decoded and decompressed and they are converted back into their original media form.
IPTV systems are the combinations of equipment, software, and processes that are used to gather programs from various sources, organize them into channels, distribute them through various data communication systems, and allow people to select and view the programs on one or more types of viewing devices. Content Sources - Content sources for IPTV systems include a mix of traditional television content sources and new media sources. Traditional content sources include network TV , syndicates (shared TV program sources), movies (through content aggregators ), local programming (news and sports). New media sources include independent programming (companies, organizations), community content (social media), and personal media channels . Headend - Headends are the network components that are used to receive, mange, process (convert formats if necessary), and distribute (broadcast) digital media content to television network users. Headends can range from the simple devices that convert analog video to digital form for transmission to the interactive control, delivery, and management of digital content. Distribution Network - A distribution network is the portion of a television system that links the media programs (the headend) to the end customer's viewing devices . For IPTV systems, the distribution network is a digital system that can transport IP data packets. Because many people watch the same program at the same time (such as local sports), IPTV distribution networks may contain media hubs or distribution points that rebroadcast (multicast) the same packets to people who are watching the same programs. Home Networks - A home media network is the equipment and software that is used to transfer data and other media in a customer's facility or home . A home network may be used to connect terminals (computers) and media devices (such as TV set top boxes) to each other and to wide area network connections. Home networks may use a mix of wired Ethernet, wireless LAN, powerline, coaxial and phone lines to transfer data or media. This figure shows a sample IPTV system. This diagram shows the IPTV system gathers content from a variety of sources including network feeds, stored media, communication links and live studio sources. The headend converts the media sources into a form that can be managed and distributed. The asset management system stores, moves and sends out (playout) the media at scheduled times. The distribution system simultaneously transfers multiple channels to users who are connected to the IPTV system. Users view IPTV programming on analog televisions that are converted by adapter box (IP set top box), on multimedia computers or on IP televisions (data only televisions).
Internet television service providers (ITVSPs) help customers find Internet television channels and manage connections between media sources. While it is possible in some cases for end users to directly connect to a media source by using an IP address or even a web link, Internet television provides may simplify the programming guide choices. Internet television service providers may also provide connections to subscription controlled television sources. For this role, the Internet TV service provider makes a business relationship with the media source. The IP television service provider may pay the media provider from funds it collects from their end user's. Content Sources - Content sources for Internet TV systems can include a mix of traditional television content sources and new media sources. While some Internet TV providers provide traditional content sources such as television programming form other countries, Internet TV service providers commonly provide specialty content that is not available through traditional broadcast networks. Examples include specialty sports channels (such as fly fishing), hobby channels (such as whiskey making), and others. If the consumer wants access to the content, they may only able to get it through Internet TV. Internet TV Headend - Internet TV headends are the network components that are used to mange how subscribers are connected to media sources. In some Internet TV systems , the headend manages and process media (convert formats if necessary) for distribution to subscribers and other Internet TV systems simply manage how viewing devices connect to media sources (direct connection). Internet TV Distribution - Internet TV distribution is the processes that are used to manage TV connections through the Internet . To minimize the aggregation of many channels onto a single high speed connection, Internet TV distribution systems may use mirror sites or multicast distribution systems to copy and redistribute programs multiple viewers who are simultaneously watching the same program. Internet TV Viewing Devices - Internet TV viewing devices can receive and convert media such as video, audio or images into a form that can be viewed by people. Internet TV viewing devices include multimedia computers and Internet TV set top box (STB) adapter boxes. Internet TV STBs are similar to IP STBs except they have the capability to receive TV programs over unmanaged broadband Internet connections. This figure shows that Internet television service providers (ITVSPs) are primarily made of computers that are connected to the Internet and software to operate call processing and other services. In this diagram, a computer keeps track of which customers are active (registration) and what features and services are authorized. When television channel requests are processed, the ITVSP sends messages to gateways via the Internet allowing television channels to be connected to a selected media gateway source (such as television channels). These media gateways transfer their billing details to a clearinghouse so the ITVSP can pay for the gateway's usage. The ITVSP then can use this billing information to charge the customer for channels viewed.
A home media network is the equipment and software that is used to transfer data and other media in a customer's facility or home. A home network may be used to connect terminals (computers) and media devices (such as TV set top boxes) to each other and to wide area network connections . Home networks may use a mix of wired Ethernet, wireless LAN, powerline, coaxial and phone lines to transfer data or media. Each household may have several televisions (1-3) and viewers may desire to watch different programs. This requires the bandwidth to be shared with each individual IP television. Multimedia Needs - Households may have a combination of several multimedia computers , set top boxes or IP televisions in each home. When viewers are watching television channels (different channels), the bandwidth of each IP television signal must be added . Each IPTV connection requires a steady stream of media at 2 Mbps to 20 Mbps (HDTV). Homes commonly have additional media needs which can include Internet browsing (with large file transfers) and audio connections (telephone and home music systems). The combined multimedia needs of homes can range from 6 to 100 Mbps. Home Media Connection Types - Home media connection types are the transmission mediums that are used to transport signals are data between points in the network. Home media connection types can include telephone lines (twisted copper wire pairs), coaxial cable (TV cable), data cable (high precision twisted copper wire pairs), powerline (large untwisted copper wires), wireless (Wi-Fi), and optical cable . Home media systems may use a combination of connection types. Home Media Systems - Home media systems convert and coordinate the reception and distribution of media in the home. Home media systems may automatically configure devices within the system to prioritize and coordinate the distribution of media. For example, home media networks may give priority to television signals when a large file is being transferred from the Internet to a personal computer that is connected to the home media network. There are several home media system types (such as HomePNA, HomePlug, and MoCA) and they may co-exist and even connect through each other. This figure shows how much data transfer rate it can take to provide for multiple IP television users in a single building. This diagram shows 3 IP televisions that require 1.8 Mbps to 3.8 Mbps to receive an IP television channel. This means the broadband modem must be capable of providing 5.4 Mbps to 11.4 Mbps to allow up to 3 IP televisions to operate in the same home or building.
Digital rights management ( DRM ) is a system of access authorization and copy protection used to control the distribution of digital media. DRM involves the control of physical access to information, identity validation (authentication), service authorization, and media protection (encryption). DRM systems are typically incorporated or integrated with other systems such as content management systems, billing systems, and royalty management. Some of the key parts of DRM systems include key management, product packaging, user rights management (URM), data encryption, product fulfillment and product monitoring. Intellectual Property Rights (IPR) - Intellectual property rights are the privileges (such as exclusive use) of the owner or the assignee of the owner of patents, trademarks, copyrights , and trade secrets. DRM systems are designed to control access and protect the digital assets (such as movies or TV programs). Digital assets have rights associated with them that may be assigned to other systems or people for use. Rights may be assigned by the owner of the content which usually contain restrictions on when and how content may be used. Rendering Rights - Providing authorization to convert media into a form that can be heard, viewed or sensed by a human being. An example of rendering is the conversion of a data file into an image that is displayed on a computer monitor. Transport Rights - Transport rights are the authorizations to move , copy or loan content. An example of transport rights is the transmission of television programs through a satellite system. Derivative Rights - Derivative rights are the authorizations to extract, insert or edit content . An example of derivative rights is the use of text from a book or article in a presentation or another article. DRM System - DRM systems are a combination of processes, programs and hardware that facilitate the assignment, management and enforcement of the rights associated with digital media. Media Identification - Media identifiers are unique labels or codes that can be used to identify any type or portion of content . Media programs and object within them may contain long term (persistent) and locatable (actionable) identification information for specific content or elements of content. Rights Assignment - Rights assignments is the granting of authorizations ( permissions ) that allow for the use, communication, or alteration of media or information to other people or systems (e.g. to the public). IPTV rights management systems must identify content and the rights associated with it. For example, some programs may only be distributed a limited number of times. Asset Management - Digital asset management is the process of acquiring, maintaining, distributing and deleting information (electronic) assets. IPTV systems may temporarily store and use digital assets (such as movies or TV programs) provided by other companies. Usage Tracking - Usage tracking is the recording of a quantity of service or material that is transferred over a period of time or between events. DRM systems must be able to track when and how digital assets are requested and used. Rights Enforcement - DRM systems may control enforcement points that maintain and manage admission and usage policies for services. For example, if a viewer has required to watch a pay per view TV program, the viewer should not be able to watch the program again without having to pay again.
IPTV economics is the identification and analysis of revenues and costs associated with providing IPTV systems or services. IPTV Revenue Sources - IPTV revenue sources include fees charged subscribers for access to channels, fees charged for viewing or obtaining media, revenue collected for the insertion of promotional messages (ads), and revenue generated from purchase transactions (television commerce). Subscription Services - Subscription services are value-added services that provide or entitle a customer to receive or gain access to services. Subscription services are typically provided with no fixed termination date and subscription users are often billed periodically (e.g. monthly) for the subscription service. Pay Per View Content - Pay per view (PPV) is the providing of television programming such as sports, movies, and other entertainment video that customers view for a fee each time the obtain or use the content. Advertising - IPTV operators can earn revenue for the insertion of promotional media that is viewed by potential customers. The advertising revenue potential for IPTV operators can be much higher than for traditional television broadcasters because television commercials can be targeted to specific areas, homes, or even to specific viewers. IPTV systems can use addressable advertising (ads sent to specific boxes), expandable advertising (viewers can choose to see more), and interactive advertising (viewers can submit requests and feedback). Television Commerce - Television commerce is a shopping medium that uses a television network to present products and process orders. IPTV systems can merge electronic commerce (e-commerce) systems with their IP networks to permit viewers to purchase items and services directly through their television sets. IPTV Cost Sources - IPTV cost sources include fees incurred for the use of content, operations cost, systems costs, and data transfer costs. Content Licensing - Content licensing costs are the fees paid for the legal rights to distribute the media that is sold or transferred. For traditional content (such as network TV programs), the cost of content rights distribution for television systems ranges from approximately 35% to 50% of the collected revenues (see the financial reports of cable television companies). IPTV systems may offer new sources of content that have lower costs or the content owners (such as companies) Operations Cost - Operations cost is the charges and fees associated with the setup (provisioning), administration, and management of a business or system. Because IPTV technology and systems are relatively new, it is likely that setup and maintenance costs will be relatively high initially. However, as IPTV systems mature, customers can self service their orders and automated diagnostics will dramatically reducing the operations and support costs compared to traditional broadcast systems. Data Transfer Cost Data transfer cost is the fees paid for the transferring of data into or out of a data network (such as the Internet). For companies that own their own data network, this cost is determined by the network cost divided by the total bandwidth used by the customers. For Internet TV broadcasters, this cost is determined by the bandwidth that is sent through the Internet. Because data the data transfer rate for digital video signals is relatively high, the data transfer cost for each user for standard television quality signals through the Internet can be approximately 2 to 10 cents per hour.
Internet television service providers (ITVSPs) help customers find Internet television channels and manage connections between media sources. While it is possible in some cases for end users to directly connect to a media source by using an IP address or even a web link, Internet television provides may simplify the programming guide choices. Internet television service providers may also provide connections to subscription controlled television sources. For this role, the Internet TV service provider makes a business relationship with the media source. The IP television service provider may pay the media provider from funds it collects from their end user's. Content Sources - Content sources for Internet TV systems can include a mix of traditional television content sources and new media sources. While some Internet TV providers provide traditional content sources such as television programming form other countries, Internet TV service providers commonly provide specialty content that is not available through traditional broadcast networks. Examples include specialty sports channels (such as fly fishing), hobby channels (such as whiskey making), and others. If the consumer wants access to the content, they may only able to get it through Internet TV. Internet TV Headend - Internet TV headends are the network components that are used to mange how subscribers are connected to media sources. In some Internet TV systems , the headend manages and process media (convert formats if necessary) for distribution to subscribers and other Internet TV systems simply manage how viewing devices connect to media sources (direct connection). Internet TV Distribution - Internet TV distribution is the processes that are used to manage TV connections through the Internet . To minimize the aggregation of many channels onto a single high speed connection, Internet TV distribution systems may use mirror sites or multicast distribution systems to copy and redistribute programs multiple viewers who are simultaneously watching the same program. Internet TV Viewing Devices - Internet TV viewing devices can receive and convert media such as video, audio or images into a form that can be viewed by people. Internet TV viewing devices include multimedia computers and Internet TV set top box (STB) adapter boxes. Internet TV STBs are similar to IP STBs except they have the capability to receive TV programs over unmanaged broadband Internet connections. This figure shows that Internet television service providers (ITVSPs) are primarily made of computers that are connected to the Internet and software to operate call processing and other services. In this diagram, a computer keeps track of which customers are active (registration) and what features and services are authorized. When television channel requests are processed, the ITVSP sends messages to gateways via the Internet allowing television channels to be connected to a selected media gateway source (such as television channels). These media gateways transfer their billing details to a clearinghouse so the ITVSP can pay for the gateway's usage. The ITVSP then can use this billing information to charge the customer for channels viewed.
IPTV is about Content . Because IPTV is a switched video system, there is no limit on the number channels a system can have. It is possible to have 1 Million TV Channels or more. IPTV Services can include traditional television types such as subscription (paid programming), Pay Per View on demand services. IPTV systems can earn much more advertising revenue than traditional TV systems because ads can be targeted to specific users . IPTV systems can merge e-commerce with IPTV technology to produce very high value television commerce ( t-commerce ). IPTV viewing devices include standard TV (with STBs ), multimedia computers (PCs), multimedia mobile phones (with video capability), and IP televisions (dedicated digital viewing devices). IPTV systems can be owned and/or managed networks . The types of companies that can operate managed networks include telephone companies (essential now), Cable TV companies (will need to compete with telephone company IPTV), electric companies (send the signals over existing electric power lines), mobile systems (value added service), and wireless broadband (they need new customers). Internet television ( Broadband TV ) are systems that distribute television signals through an Internet connection that they cannot control ( unmanaged connections ). If the broadband connection is fast enough, the quality can be the same as managed IPTV systems. Internet TV systems can have very low startup costs and can offer TV programs globally .