How Consumer Psychology is Redefining IPTV in the UK and USA
How Consumer Psychology is Redefining IPTV in the UK and USA
Blog Article
1.Introduction to IPTV
IPTV, also known as Internet Protocol Television, is becoming progressively more influential within the media industry. Unlike traditional cable and satellite TV services that use costly and primarily proprietary broadcasting technologies, IPTV is delivered over broadband networks by using the same Internet Protocol (IP) that powers millions of home computers on the modern Internet. The concept that the same on-demand migration is anticipated for the era of multiscreen TV consumption has already piqued the curiosity of various interested parties in the technology convergence and potential upside.
Consumers have now embraced watching TV programs and other media content in many different places and on a variety of devices such as mobile phones, computers, laptops, PDAs, and additional tools, in addition to traditional TV sets. IPTV is still relatively new as a service. It is expanding rapidly, and different commercial approaches are taking shape that are likely to sustain its progress.
Some believe that low-budget production will probably be the first area of content development to reach the small screen and explore long-tail strategies. Operating on the business side of the TV broadcasting pipeline, the current state of IPTV hosting or service, nevertheless, has several distinct benefits over its traditional counterparts. They include crystal-clear visuals, flexible viewing, DVR functionality, audio integration, internet access, and instant professional customer support 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 primary networking hub, and the IPTV server consisting of video encoders and server hardware configurations have to work in unison. Multiple regional and national hosting facilities must be entirely fail-safe or else the stream quality falters, shows seem to get lost and fail to record, interactive features cease, the visual display vanishes, the sound becomes interrupted, and the shows and services will malfunction.
This text will address the competitive environment for IPTV services in the United Kingdom and the United States. Through such a comparative analysis, a range of key regulatory themes across various critical topics can be explored.
2.Regulatory Framework in the UK and the US
According to legal principles and associated scholarly discussions, the regulatory strategy adopted and the details of the policy depend on perspectives on the marketplace. The regulation of media involves rules on market competition, media control and proprietorship, consumer rights, and the protection of vulnerable groups.
Therefore, if market regulation is the objective, we have to understand what characterizes media sectors. Whether it is about proprietorship caps, market competition assessments, consumer safeguards, or media content for children, the regulator has to understand these sectors; which media markets are expanding rapidly, where we have competitive dynamics, integrated vertical operations, and ownership overlaps, and which industries are slow to compete and ready for innovative approaches of industry stakeholders.
Put simply, the current media market environment has consistently evolved to become more fluid, and only if we reflect on the policymakers can we identify future trends.
The growth of IPTV everywhere accustoms us to its adoption. By combining traditional television offerings with novel additions such as technology-driven interactive options, IPTV has the potential to be a crucial factor in enhancing rural appeal. If so, will this be enough to prompt regulatory adjustments?
We have no evidence that IPTV has an additional appeal to the people who do not subscribe to cable or DTH. However, certain ongoing trends have had the effect of putting a brake on IPTV growth – and it is these developments that have led to reduced growth expectations for IPTV.
Meanwhile, the UK adopted a lenient regulatory approach and a forward-thinking collaboration with the industry.
3.Key Players and Market Share
In the UK, BT is the leading company in the UK IPTV market with a 1.18% market share, and YouView has a 2.8% share, which is the scenario of single and dual-play offerings. BT is usually the leader in the UK based on statistics, 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 through HFC infrastructure, followed by BT. Netflix and Amazon Prime are the strongest OTT services 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 American market, AT&T leads the charts with a share of 17.31%, outperforming Verizon’s FiOS at 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 successfully attracting 16.5 million IPTV customers, primarily through its U-verse service and DirecTV service, which also is active in Latin America. The US market is, therefore, divided between the leading telecom providers offering IPTV services and new internet companies.
In Europe and North America, leading companies offer integrated service packages or a loyal customer strategy for the majority of their marketing, offering multi-play options. In the United States, AT&T, Verizon, and Lumen largely use infrastructure owned by them or existing telecom networks to deliver IPTV solutions, albeit on a smaller scale.
4.IPTV Content and Plans
There are distinct aspects in the content offerings in the UK and US IPTV markets. The types of media offered includes live broadcasts from national and regional networks, on-demand programs and episodes, pre-recorded shows, and exclusive productions like TV shows or movies accessible solely via the provider that aren’t sold as videos or seen on television outside of the service.
The UK services feature classic channel lineups similar to the UK cable platforms. They also offer mid-size packages that contain important paid channels. Content is categorized not just by preferences, but by medium: terrestrial, satellite, Freeview, and BT Vision VOD.
The main differentiators for the IPTV market are the plan types in the form of fixed packages versus the more flexible per-channel approach. UK IPTV subscribers can choose additional bundles as their content needs shift, while these channels are included by default in the US, in line with a user’s initial preset contract.
Content collaborations highlight the varied regulatory frameworks for media markets in the US and UK. The era of condensed content timelines and the evolving industry has major consequences, the most direct being the market role of the UK’s dominant service provider.
Although a late entrant to the busy and contested UK TV sector, Setanta is positioned to gain significant traction through its innovative image and securing top-tier international rights. The strength of the brands plays an essential role, combined with a product that has a cost-effective pricing and offers die-hard UK football supporters with an attractive additional product.
5.Technological Advancements and Future Trends
5G networks, integrated with millions of IoT devices, have transformed IPTV transformation with the introduction of AI and machine learning. Cloud computing is greatly enhancing AI systems to enable advanced features. Proprietary AI recommendation systems are gaining traction by streaming services to capture audience interest with their own advantages. The video industry has been transformed with a new technological edge.
A larger video bitrate, by increasing resolution and frame rate, has been a key goal in boosting audience satisfaction and gaining new users. The technological leap 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 media providers to optimize performance to further improve customer satisfaction. This paradigm, similar to earlier approaches, relied on user perspectives and their need for cost-effectiveness.
In the near future, as the technology adoption frenzy creates a level playing field in user experience and industry growth levels out, we predict 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 contribute to the next phase in content consumption by making static content dynamic and engaging.
2. We see VR and AR as the main catalysts behind the emerging patterns for these domains.
The ever-evolving consumer psychology puts data at the center stage for every stakeholder. Legal boundaries would restrict unrestricted availability to consumers' personal data; hence, user data safeguards would hesitate to embrace new technologies that may leave their users vulnerable to exploitation. However, the current integrated video on-demand service market makes one read more think otherwise.
The cybersecurity index is at its weakest point. Technological leaps and bounds have made system hacking more digitally sophisticated than manual efforts, thereby favoring white-collar hackers at a greater extent than manual hackers.
With the advent of centralized broadcasting systems, demand for IPTV has been growing steadily. Depending on viewer habits, these developments in technology are going to change the face of 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
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