ABI Research recommends IPTV operators to pursue differentiation

May 13, 2008 – A new study by ABI Research on the global IPTV market recommends that the industry must find ways to create a distinct identity and differentiate itself from rival pay-TV platforms in order to continue growing and prospering.

IPTV is now an established part of the pay-TV landscape globally, according to ABI Research, but according to Senior Analyst Cesar Bachelet, “IPTV operators must now leverage the characteristics of the new platform to produce a differentiated offering, redefining the experience of television.”

To achieve this differentiation, Bachelet suggests that operators focus on integrating Web content (text or video) with traditional broadcast content; offering subscribers the ability to access the EPG and DVR functionality via any Internet-connected device; and implementing targeted advertising in order to foster more effective ad strategies.

“From a technology perspective, all the tools are there, enabling IPTV operators to move to the next level and bring greater choice, convenience and control to consumers,” said Mr. Bachelet.  “However, operators must tread carefully in order not to overwhelm subscribers with too many new features at once, and business models still need to be defined for some of the new value-added services in order to monetise them without alienating subscribers.”