Google and cable firms warn of risks from Web TV

By Lucas van Grinsven (2.7.07)
http://today.reuters.com/news/articlenews.aspx?type=internetNews&storyID=
2007-02-07T230017Z_01_L0767087_RTRUKOC_0_US-CABLE-WEBTV.
xml&WTmodLoc=InternetNewsHome_C1_%5bFeed%5d-2

Internet TV will not be what consumers nor providers expect it to be and will quickly overload current broadband capacities.

This article claims that cable incumbents need not fear telcoms taking over the TV market via internet TV anytime soon. Although cable operators will have to increase investment to match telcom's broadband packages.

"The Web infrastructure, and even Google's (infrastructure) doesn't scale. It's not going to offer the quality of service that consumers expect," Vincent Dureau, Google's head of TV technology, said at the Cable Europe Congress.

Google was welcomed with a mix of fear and awe by the cable TV companies, which are concerned that Web companies will try to steal their lucrative TV business.

Shares of cable operators trade at around nine times forecast 2007 earnings before interest, tax amortization and depreciation (EBITDA), while telecoms operators trade at around six times, said Charles Manby, Goldman Sachs' global co-head for the telecoms, media and technology industries.

Cable operators are set to return to capital investments of a modest 10 to 12 percent of revenues, but they can be forced to spend much more due to outside pressures from increased Internet consumption and from rival telecoms operators that upgrade their broadband Internet packages to fiber optic super speeds.

Broadband video-to-TV trend seen roiling business models

By Kenneth Li (1.9.07)
http://today.reuters.com/news/articlenews.aspx?type=technologyNews&storyID=

Technology unveiled at CES last week allows people to more easily access Internet and PC content via their TVs potentially driving demand for bandwidth to supply high definition streaming content as well as creating new potential business partnerships.

At the Consumer Electronics Show in Las Vegas this week, electronics manufacturers from Sony Corp. to start-ups such as Sling Media unveiled a raft of new products to allow consumers to play Internet videos, or media files stored on PCs, directly on their TV screens.

"There are a lot of companies looking to bypass cable," said Bob Greene, executive vice president of Liberty Media Holding Corp.'s Starz Entertainment network.

Consumers are currently unwilling to pay more for a device that lets them view PC content on TV screens, according to a poll of 5,000 U.S. homes by Forrester Research. Moreover, the bandwidth constraints of current broadband services essentially rule out any downloading or streaming of high-definition programs.

Some big cable operators have conceded they need to craft a response to the growing trend in watching PC-based Internet videos on big screens, one media executive said. On a panel discussion, Chase Carey, chief executive of No.1 U.S. satellite TV provider DirecTV Group Inc., said he saw more opportunities than challenges. DirecTV is also in discussions with top online video sites YouTube and News Corp.'s MySpace to allow viewers to watch clips directly on TV screens.

IPTV vs. Internet TV: How they Stack Up

David Cotriss (12-18-06)
http://www.dailyiptv.com/news/iptv-vs-internet-tv-121506/

What is the best way to deliver TV services? The pros and cons of Internet TV vs. IPTV


IPTV is a way of bringing in the stability of a network with the internet's endless content capabilities.

Given the much larger amount of content available online cable and telecom providers will likely embrace Internet video as a complement to their own IPTV offerings rather than position themselves as direct competitors. Best-effort Internet video can be subject to delays due to lower bandwidth, high traffic or poor connection quality,” he said. The end result of IPTV delivery is a higher quality, more reliable, and more consistent viewing experience, he added.

Both Internet TV and IPTV have positions in the marketplace, but IPTV meets the demands of high-quality video content delivered to consumers’ television screens, and the service will continue to improve as companies find innovative ways to take advantage of the opportunities an all-IP platform provides for integration across services and platforms.