That don’t impress me much: more on-demand is all very well, but people want TV channels

As this is written, UK-based DSL content supplier Video Networks Limited is up for sale, according to the Financial Times, with a price tag of up to £200m. Video Networks trades as Homechoice and the business presents an appealing bundle of TV content (including VOD programming), packaged with telephony and broadband access. There is speculation focusing on BSkyB being a possible buyer following their recent purchase of broadband outfit Easynet. The latest subscriber count is 34,000, mainly in the Greater London area.

Unique market

Meanwhile, Britain is patiently waiting for British Telecom to roll out its ADSL2+ service (BT Entertainment) later this year, headed by Andrew Burke, and with Dan Marks (formerly of Universal Studios UK) looking after content, and using a network based largely on Microsoft MSTV technology. BT has announced links with HIT Entertainment (who make Bob the Builder), National Geographic Channel, Paramount, Warner Music and even the BBC to push content down their wires. I am not holding my breath for any spectacular results, for the UK is not France (MaLigne TV) or Italy (FastWeb) where limited alternative offerings made DSL an instant hit with some consumers. Chief executive James Murdoch, speaking at the February 1st BSkyB results, summed up neatly the uphill mountain any DSL provider has to face, when he said: “Replicating Sky’s service down a phone line will be very difficult, and very expensive. You cannot eat a sandwich through a straw.” 

Less HDTV

Murdoch is right. MaLigne and FastWeb may be making it fairly easy to suck up content, but they are not about to launch nine channels of HDTV programming - nor hinting at another 20 over time. The BT service, as yet not fully outlined, is at best a hybrid of established brands plus VOD material - exactly the same as offered by Homechoice. In fact, Homechoice put great effort into creating some unique channels of its own (kids channel Scamp, music under the ‘V’ brands, and their Movies Now options) and they are all perfectly good. But how can you possibly compare ‘Scamp’ - however good - with the brand power and marketing muscle of Nickelodeon, Cartoon Network or Cbeebies? Most people buy brands they know and trust - and this includes TV. Viewers want mass-appeal ‘water cooler’ TV, whether it’s Eastenders, 24, Avocats Associes (France 2), or La Signora in Gallo (RAI 1, and better known as Murder, She Wrote just about everywhere on the planet). And viewers want these programmes wrapped in an assembled package called BBC, Sky, Fr2 or RAI. Evidence has shown that while some geeks will go to the ends of the earth to download an early edition of 24, or Lost, the vast majority of viewers know where they can find their favourite shows, and that is among the linear entertainment streams that we call channels. People want to be alerted and teased and persuaded to watch. Simply listing a huge array of available shows or movies, or music clips isn’t enough.

Painless entertainment

British Telecom, in its new IPTV guise under Messrs Burke and Marks will, one hopes, recognise this. Important as broadband and DSL is - and it is hugely important – the vast majority of people still want to be painlessly entertained come prime-time. Viewers are happy to make choices within a broadcast schedule they more or less understand and recognise. Viewers don’t care how their favourite brands get to them - only that they arrive in a shape and form they understand. Not re-packaged or re-branded or re-scheduled. Offer VOD, broadband and Skype by all means, but I am not holding my breath. It’s TV that people want, however it is delivered. London-based Chris Forrester is a well-known technology journalist who reports on all aspects of the TV industry with special emphasis on content, the business of television and emerging technologies.

$11 million funding

Kasenna, a provider of VOD programming and platforms for video content and service delivery, has closed an $11 million round of funding. Led by Intel Capital, and with participation by all existing major investors, the private equity injection will be used to accelerate Kasenna’s growth in the domestic and international IPTV and cable markets, as well as strengthen the company’s balance sheet.

SkyStream acquisition

 TANDBERG Television has signed a definitive agreement to acquire SkyStream, the Sunnyvale, California headquartered provider of IP video delivery solutions. TANDBERG will acquire privately-held SkyStream for a mix of cash and shares. The total consideration will be US$80m and completion is expected by April, subject to standard closing conditions.

Optibase cooperation

Digital video solutions provider Optibase Ltd and Telrad Networks, an IP/NGN solution provider and system integrator for telecom carriers, are cooperating to provide end-to-end NGN and IPTV solutions worldwide. The first commercial outcome is a recent order placed by Georgia's second largest Telecom operator, NewNet Telecommunications.

DVB-S2 transport

Satellite operator Telesat has announced its selection as the exclusive satellite provider for Auroras Entertainment, which is developing a fully integrated IPTV service that will be available across North America using C-band service from Telesat’s Anik F2 satellite. It is thought this will make Auroras the first and only fully redundant DVB-S2 transport network for IPTV.

Avoid ‘Me Too'

Detecon Inc., a leading global telecoms and information technology consultant, is urging telcos to press software companies for a simplified architecture and open interfaces in its paper, IPTV: Technology and Development Predictions. The company also cautions telcos not to roll out undifferentiated ‘Me Too’ video offers. Detecon also investigates the requirements IPTV imposes on the network for additional bandwidth and multicasting support.

IPTV America

GlobeVISION Inc., a global media service company, has launched an IPTV service for Asian-Americans in North America. Content deals with Korea's two largest private broadcasters, MBC and SBS, as well as CJ Media, Korea's largest cable media group, will allow the PIE service to deliver tens of thousands of TV and movie programme choices. The service is being trialled in California and will begin serving Asian-Americans across the US on July 1st.

Verizon franchise

Verizon chairman and CEO Ivan Seidenberg has urged members of the US Senate’s commerce committee to allow a national video franchising process in order to increase competition for digital TV and improve customer choice. He said the federal law requiring a second franchise from thousands of local authorities was the biggest limiting factor to roll-outs.

Schools learning

Kreatel Communications has been selected to supply set-top boxes, a software platform and development kits for STREAM, a pioneering on-demand IPTV project in Hull that gives pupils and parents access to on-demand video- based learning materials. These are used to support schools curricula. Video materials will be broadcast into school classrooms and homes. STREAM launches in the spring with two channels.

Complex delivery

Harris Corporation has expanded its content delivery solutions to include a new IPTV portfolio that spans three key layers of IPTV architecture: business and operations; infrastructure; and test & measurement, monitoring and network management. It will enable service providers to create and deliver complex cross delivery advertising campaigns, programming playout and other network-based services.

Chinese content

New York-based KyLinTV Inc. has announced a content partnership with Chinese Media Net Inc. that will bring exclusive original programming to the IPTV subscription service. Based in Great Neck, NY, Chinese Media Net is a multimedia news organisation best known for the weekly newspaper Duowei Times and the www.ChineseNewsNet.com news service.

Video distribution

SkyWay Connect Inc., an IP/ASI-based video distribution provider, is working with PanAmSat to deliver IPTV services to small and mid-sized telcos and cable systems across North America, based on the SkyWay Connect MPEG-4 Part 10 video distribution platform. Under development, the service will rely on PanAmSat's Galaxy 3C satellite to transmit the MPEG-4 content. PanAmSat retains an option to acquire an equity interest in SkyWay Connect.

Advanced encryption

Widevine Technologies, a pioneer in downloadable content protection, has announced the immediate availability of Application Level Encryption, which eliminates the need to integrate with downstream video infrastructure equipment. Widevine says it reduces the capital and operational costs normally required to integrate content protection with VOD and nPVR systems.

MPEG-4 expansion

Iowa Network Services (INS) is deploying IPTV services using Tut Systems' Astria content processor, which includes MPEG-4 Part 10 (H.264) encoding and transcoding solutions. The INS expansion is said to be one of the world’s largest MPEG-4 Part 10 deployments, and is the latest in a series of wins for Tut Systems with its MPEG-4 solution. The contract to expand the INS headend is worth over $3 million.

iTV merger

Interactive TV specialist ICTV is merging with Switched Media, a developer of solutions for mass customisation of live video streams. The ICTV name will remain. The agreement will enable the companies to deliver personalised, Web-driven content to the television that combines the live stream video processing capabilities of Switched Media’s InStream solution with the interactive capabilities of ICTV’s HeadendWare iTV platform.

CA integration

Irdeto has licensed IDway, a supplier of software solutions for digital TV consumer equipment, to integrate its Conditional Access technology with the IDway-J middleware solution. IDway can now provide an integrated software solution to manufacturers who want to quickly mass-produce set-top boxes for network operators wishing to offer an interactive end-user experience.

Service assurance

Brix Networks, a provider of converged service assurance solutions, has unveiled an IPTV service assurance portfolio. BrixVision gives service providers complete visibility into the quality of video content, the underlying delivery infrastructure and the overall customer experience. Brix has a heritage in VoIP and IP video service assurance.

Home networks

 A report from MRG, IPTV Home Networking Strategies, 2006, suggests that network operators extend their management systems to include the home network, and that IPTV providers can also use the home gateway and IPTV set-top box to provide both local and network based services. The report describes the strategic importance of the home network for IPTV operators.

Shareholder approval

Scientific-Atlanta shareholders have approved the company's acquisition by Cisco Systems and will receive $43.00 in cash for each Scientific-Atlanta share they own when the transaction closes. Scientific-Atlanta and Cisco previously announced that the waiting period for US antitrust review under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 was terminated on December 30. The transaction remains subject to regulatory approval by competition authorities in jurisdictions outside the United States.

Swiss protection

The Swiss power utility and communications service provider, Sierre Energie SA, has licensed SecureMedia's Encryptonite System for the deployment of IPTV by its subsidiary Télévision Sierre SA (TVSierre). The new FTTH-based video service will use the content protection system for broadcast TV and VOD. It covers encryption, user authentication, user rights management and key management. SecureMedia Inc. is a provider of Conditional Access and Digital Rights Management software solutions.

Asia-Pacific development

Alcatel and the Singapore Economic Development Board (EDB) have launched a competency centre dedicated to IPTV and triple-play in Asia-Pacific. It will focus on activities that contribute to the development of Singapore as a regional IPTV and triple-play hub. One of the first initiatives is to train IPTV technology specialists, including sending them around the world to gain experience.

Subscription soccer

Belgacom TV has introduced subscription soccer for Eu10 per month. With broadcast rights to Belgium’s Jupiler League, the company is offering subscribers the chance to see two of their chosen club’s away matches each month, up to 17 games a year. Users are only billed during the football seaso n.