And so there will be a workable revenue model for that content as well?

It may not be something that they can achieve on day one but it will be something that will allow them to compete and make the money. It may not be something that sets the balance sheet on fire to start with it, but it’s a hook. So once you’ve got the consumer hooked you’ve got other options and other alternatives.

I think that the local cable company did it well here in Austin Texas. No-one was beating down their door to go out and buy, but then they came out with the DVR. Without any advertising they sold 100,000 units. Now have an application allows you to track and bid on Ebay. Then voice services with on-screen caller ID. These were very sticky services. Content is not the be all and end all, but it is one of the aspects that will allow telcos to go out there and get the customer interested in IPTV services.

Any success stories that you can point to that make you feel that IPTV is a good bet for the telcos?

There are two success stories in this context, PCCW and Fastweb. But must look geographically at what was happening. There was a gap regionally in services that they could fill. The US market is very diverse. There is a big difference in how companies react and go to market. You hear stories about smaller operators and their successes. But the smaller companies don’t have the marketing engine of someone like SBC or Verizon, or their ability to tap into Hollywood. SBC report that those employees who have been a part of their IPTV trials don’t want to give up the service now they have tried it. It will be interesting to see where the better business model exists.

People are saying we are at a subtle inflection point in the market, with HD TV becoming more acceptable and desirable to the consumer, and more acceptable to the mass market. And that subtle inflection point very possibly provides an ideal opportunity for IPTV providers. People are in the mood for change. Channels with HD want to get the most out of it. So there is almost an evolution going on. Technology is ready, bandwidth is there, the market space is ready, the government are tuned in, and providers have got content that’s readily available for that. Maybe IPTV is just about merging into the perfect storm?

About Motive
Motive, Inc. has developed a unique approach to designing management services into Internet-era networks, systems and applications. Motive’s software makes complex products and services self-managing, reducing overhead costs and optimizing customers’ return on investment.

Companies worldwide have relied on Motive’s software to provide a range of problem remediation and configuration management tasks for more than 45 million endpoints. Founded in 1997, Motive is headquartered in Austin, Texas, and has offices in Europe and Asia.

For more information about Motive please visit http://www.motive.com