1.Overview of IPTV

IPTV, or Internet Protocol Television, is growing in significance within the media industry. Unlike traditional cable and satellite TV services that use costly and largely exclusive broadcasting technologies, IPTV is delivered over broadband networks by using the same Internet Protocol (IP) that serves millions of personal computers on the modern Internet. The concept that the same on-demand migration is anticipated for the era of multiscreen TV consumption has already captured the interest of numerous stakeholders in the technology convergence and growth prospects.

Consumers have now started to watch TV programs and other video entertainment in a variety of locations and on a variety of devices such as mobile phones, desktops, laptops, PDAs, and additional tools, alongside conventional televisions. IPTV is still in its infancy as a service. It is expanding rapidly, and different commercial approaches are developing that could foster its expansion.

Some assert that low-budget production will likely be the first type of media creation to transition to smaller devices and play the long tail game. Operating on the commercial end of the TV broadcasting pipeline, the current state of IPTV hosting or service, however, has several distinct benefits over its traditional counterparts. They include HDTV, streaming content, custom recording capabilities, voice, internet access, and responsive customer care via alternative communication channels such as mobile phones, PDAs, global communication devices, etc.

For IPTV hosting to operate effectively, however, the Internet edge router, the core switch, and the IPTV server consisting of video encoders and blade server setups have to work in unison. Numerous regional and national hosting facilities must be entirely fail-safe or else the broadcast-quality signals fail, shows could disappear and fail to record, communication halts, the picture on the TV screen is lost, the sound becomes discontinuous, and the shows and services will fail to perform.

This text will examine the competitive environment for IPTV services in the UK and the U.S.. Through such a side-by-side examination, a series of meaningful public policy considerations across several key themes can be explored.

2.Media Regulation in the UK and the US

According to jurisprudence and the related academic discourse, the choice of the regulation strategy and the nuances of the framework depend on one’s views of the market. The regulation of media involves competition policy, media proprietary structures, consumer safeguarding, and the protection of vulnerable groups.

Therefore, if we want to regulate the markets, we need to grasp what defines the media market landscape. Whether it is about proprietorship caps, competition analysis, consumer safeguards, or children’s related media, the regulator has to possess insight into these areas; which media markets are growing at a fast pace, where we have competition, vertically integrated activities, and cross-sector proprietorship, and which industries are slow to compete and ready for innovative approaches of industry stakeholders.

Put simply, the landscape of these media markets has already changed from the static to the dynamic, and only if we reflect on the policymakers can we anticipate upcoming shifts.

The growth of IPTV on a global scale normalizes us to its dissemination. By combining standard TV features with cutting-edge services such as interactive IT-based services, IPTV has the potential to be a key part of increasing the local attractiveness of remote areas. If so, will this be adequate to reshape regulatory approaches?

We have no proof that IPTV has greater allure to non-subscribers of cable or satellite services. However, some recent developments have had the effect of putting a brake on IPTV growth – and it is these developments that have led to tempering predictions on IPTV growth.

Meanwhile, the UK implemented a liberal regulation and a forward-thinking collaboration with the industry.

3.Key Players and Market Share

In the British market, BT is the dominant provider in the UK IPTV market with a share of 1.18%, and YouView has a market share of 2.8%, which is the context of single and dual-play offerings. BT is generally the leader in the UK according to market data, although it varies marginally over time across the range of 7 to 9%.

In the United Kingdom, Virgin Media was the pioneer in launching IPTV using hybrid fiber-coaxial technology, with BT entering later. Netflix and Amazon Prime are the dominant streaming providers in the UK IPTV market. Amazon has its own digital set-top box-focused service called Amazon Fire TV, comparable to Roku, and has just entered the UK. However, Netflix and Amazon are excluded from telco networks.

In the US, AT&T is the top provider with a 17.31% stake, outperforming Verizon’s FiOS at a close 16.88%. However, considering only DSL-based IPTV services, the leader is CenturyLink, followed by AT&T and Frontier, and Lumen.

Cable TV has the dominant position of the American market, with AT&T managing to attract 16.5 million IPTV customers, mostly through its U-verse service and DirecTV service, which also operates in Latin America. The US market is, therefore, split between the major legacy telecom firms offering IPTV services and modern digital entrants.

In these regions, key providers rely on bundled services or a strategy focusing on loyal users for the majority of their marketing, including multi-play options. In the United States, AT&T, Verizon, and Lumen primarily rely on self-owned networks or traditional telephone infrastructure to provide IPTV options, albeit on a smaller scale.

4.IPTV Content and Plans

There are variations in the programming choices in the IPTV sectors of the UK and US. The potential selection of content includes real-time national or local shows, programming available on demand, pre-recorded shows, and original shows like TV shows or movies accessible solely via the provider that could not be bought on video or broadcasted beyond the service.

The UK services provide conventional channel tiers akin to the UK cable platforms. They also offer mid-size packages that include the key pay TV set of channels. Content is categorized not just by preferences, but by medium: terrestrial, satellite, Freeview, and BT Vision VOD.

The primary distinctions for the IPTV market are the plan types in the form of static plans versus the more flexible per-channel approach. UK IPTV subscribers can opt for extra content plans as their viewing tastes change, while these channels come pre-bundled in the US, in line with a user’s initial fixed-term agreement.

Content alliances highlight the different legal regimes for media markets in the US and UK. The age of shrinking windows and the evolving industry has notable effects, the most direct being the market role of the UK’s leading IPTV provider.

Although a late entrant to the crowded and competitive UK TV sector, Setanta is placed to attract a large customer base through appearing cutting-edge and holding premier global broadcasting rights. The brand reputation is a significant advantage, alongside a product that has a competitive price point and offers die-hard UK football supporters with an appealing supplementary option.

5.Emerging Technologies and Upcoming Innovations

5G networks, integrated with millions of IoT devices, have stirred IPTV evolution with the integration of AI and machine learning. Cloud computing is strongly supporting AI systems to unlock novel functionalities. Proprietary AI recommendation systems are increasingly being implemented by content service providers to engage viewers with their own unique benefits. The video industry has been transformed with a modernized approach.

A larger video bitrate, via better resolution or improved frame rates, has been a main objective in improving user experience and expanding subscriber bases. The advancements in recent years were driven by new standards developed by industry stakeholders.

Several proprietary software stacks with a smaller footprint are close to deployment. Rather than releasing feature requests, such software stacks would allow streaming platforms to prioritize system efficiency to further improve customer satisfaction. This paradigm, similar to earlier approaches, hinged on customer perception and their desire to see value for their money.

In the near future, as technological enthusiasm creates a level playing field in viewer satisfaction and industry growth levels out, we anticipate a more streamlined tech environment to keep senior demographics interested.

We emphasize a couple of critical aspects below for the two major IPTV markets.

1. All the major stakeholders may participate in the evolution in content consumption by making static content dynamic and engaging.

2. We see immersive technologies as the primary IPTV for International Channels forces behind the growth trajectories for these domains.

The constantly changing audience mindset puts data at the forefront for every stakeholder. Legal boundaries would limit straightforward access to consumers' personal data; hence, data privacy and protection laws would likely resist new technologies that may risk consumer security. However, the current integrated video on-demand service market suggests otherwise.

The cybersecurity index is at its weakest point. Technological leaps and bounds have made system hacking more remote than physical intervention, thereby favoring cybercriminals at a higher level than black-collar culprits.

With the advent of centralized broadcasting systems, demand for IPTV has been on the rise. Depending on viewer habits, these developments in technology are poised to redefine IPTV.

References:

Bae, H. W. and Kim, D. H. "A Study of Factors affecting subscription to IPTV Service." JBE (2023). kibme.org

Baea, H. W. and Kima, D. H. "A Study about Moderating Effect of Age on The IPTV Service Subscription Intention." JBE (2024). kibme.org

Cho, T., Cho, T., and Zhang, H. "The Relationship between the Service Quality of IPTV Home Training and Consumers' Exercise Satisfaction and Continuous Use during the COVID-19 Pandemic." Businesses (2023). mdpi.com