According to the latest survey results released this week by the Diffusion Group, the number of IPTV users worldwide is increasing at an average rate of 60% per year. With such rapid growth, the number of IPTV users has risen from 2 million in 2005 to 9 million in 2007, and it is projected to reach 34 million by 2010, which is quite impressive.
What is IPTV?
IPTV (Internet Protocol Television) is a television network closely integrated with telecommunications networks. This technology is expected to revolutionize the television industry, making PCs the central hub of family living rooms in the future, completely replacing traditional television.
More generally, IPTV is a value-added service that uses broadband IP networks to serve multiple users. IPTV has two basic characteristics: it is based on IP technology and serves on demand. While digital television uses predefined menus for users to choose from, IPTV can enhance service quality through high interactivity.
Compared to other Internet video delivery technologies, IPTV is advantageous as it is very user-friendly, displays clearly on TVs, and offers better visuals than computer screens. Service providers can easily manage customers. The technical advantage of IPTV is its ability to provide various multimedia services. Users can choose to watch movies, make video calls, listen to music, and search for information online through their TV or computer.
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FPT’s IPTV Website |
The testing process of IPTV provided by FPT Telecom in Ho Chi Minh City has shown that the video quality on both TVs and computers is clear and experiences less buffering compared to watching movies on websites like ione or ephim. The data traffic while watching IPTV is significantly lower than other video technologies, helping to save on Internet costs, as customers typically pay based on usage.
After a trial period offering 35 television channels via IPTV, from July 15, FPT Telecom will provide an additional 300 licensed films on the website http://tv.fpt.vn for customers to watch on demand. Mr. Pham Quoc Thang, Director of the Online Television Center at FPT Telecom, stated that the films are compressed using new technology, achieving a bit rate of 1,628 Kbps, with image and sound quality equivalent to DVD.
High Potential, High Profit
The potential of IPTV is nearly limitless, promising high-quality digital content. This technology is suitable for services like Video on Demand (VoD), webinars, interactive/live television, gaming, distance learning, video blogging (vlogging), and instant messaging via TV.
Currently, many major media companies have decided to invest in IPTV and interactive television due to the service’s significant profit potential.
In the United States, major mobile networks such as AT&T, Verizon Communications, and Swisscom will offer IPTV-based services by the end of this year. The largest telecommunications company in the UK, BT, has announced plans to launch an IPTV set-top box in mid-2007.
BBC has also completed the testing phase of a new service called iMP (Integrated Media Player), which delivers both radio and TV programs over the Internet. BBC programs will be stored online for one week, allowing Internet users to download them legally.
Surveys indicate that over 3 million people in the U.S. have watched programs like Lost, Desperate Housewives, Alias, and Commander in Chief on their computers since ABC launched its new service. The programs are free but begin with sponsor information, and users must view three mandatory advertisements.
North America is the region with the fastest IPTV growth rate at 78%. Surprisingly, the Asia-Pacific region has the lowest IPTV growth at only 41%. Meanwhile, Europe is a promising market, with growth second only to the U.S., and an estimated customer base of 14 million by 2010.
Tuong Nghi
