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IPTV vs. Internet Television: Key Differences

(Reference：Luigi Canali De Rossi，http://www.masternewmedia.org)

What is the difference between IPTV, the Internet Protocol-based TV paradigm heralded by major telecom providers and large media groups (Microsoft included) and the Internet Television painted by the Long Tail phenomenon, Ourmedia, the Internet Archive, Brightcove, and the availability of amazing new technology opportunities such as faster and faster net connections, free unlimited storage space, BitTorrent, MPEG4 and powerful low-cost hardware and software production tools?

Are they two opposite and diverging forces or are they the different aspects of the same media phenomenon portrayed in different ways?

If you ask these questions around today, few people will be able to answer in a clear and articulate way. Even those executives working for would-be IPTV ventures would give no credit whatsoever to the idea that an alternative way of leveraging Internet strengths for the commercial delivery of video content exists. Most of the time they see only theirs.

So, what are the key differences between these two radically different approaches to distributing video content via IP and which the related-issues that make them important to me and you?

The choice, for those who can see it, appears to be between a universe of highly diversified and dynamic independent production and one dominated by secure dedicated private delivery networks distributing more traditional types of video-based content largely provided by Hollywood and other established big media conglomerates.

IPTV is represented by a profile of closed, proprietary TV systems such as those present today on cable services but delivered via IP-based secure channels representing a sharp increase in control of content distribution.

Internet Television is instead an open evolving framework in which a very large number of small and medium-sized video producers contribute highly innovative niche content alongside with offerings from more traditional retail and distribution channels.

Nonetheless key differences, being able to appreciate the true nature of these two models remains a challenging task for the uninitiated reader unless she starts to look a little deeper into the differentiating details.

What is IPTV

IPTV is not TV that is broadcast over the Internet.

"IPTV is generally funded and supported by large telecom providers who have undertaken the mission of creating a competitive replacement product for digital cable and satellite services." (Jeremy Allaire)

"While the "IP" in its name stands for Internet Protocol, that doesn't mean people will log onto their favorite Web page to access television programming. The IP refers to a method of sending information over a secure, tightly managed network that results in a superior entertainment experience."
(Source: Businessweeek - "The real meaning of IPTV")

IPTV is particularly good for the established media content production business, including Hollywood and all of the major television distribution networks on satellite and cable. IPTV allows these organizations to have total control of the content distributed and to greatly reduce opportunities for theft and piracy, which last year cost the cable industry $4.76 billion in unrealized revenue.
(Source: Businessweeek - "The real meaning of IPTV").

The way IPTV television is being conceived integrates multiple ways to monitor and record user choices, preferences and selections over time therefore appearing as an ideal platform on which to add personalized e-commerce options and more targeted advertising.

• IP-TV is a carrier-led and controlled platform. There is a physical carrier that has physical pipes and infrastructure that it operates and controls. The consumer interacts directly with that operator/carrier.
• As such this is an end-to-end system or semi-closed network (infrastructure is all within the carrier environment, and cannot be normally accessed to the Internet as a whole. Further to this, the deployment infrastructure and devices to access it are all managed and operated by the IP-TV carrier).
• IPTV is definitely a massive connectivity infrastructure upgrade to be deployed over a number of years, and which underlines major changes and upgrades to connectivity, transport and delivery devices both on the operator environment as well as on the consumer side.
• IPTV approach is a fundamentally geographically-bound approach. This is mainly due to the fact that the deployment infrastructure is based in regions and in neighborhoods connected to consumer premises (users homes). User experience is also bound to their living rooms and set-top boxes. Local regulations and policies further influence and limit IP-TV to be a strongly geographically-bound model.
• IPTV will offer essentially the same product and programming offered by digital cable and satellite providers. Similar on-demand and pay per view products probably with some extra integration with voice, and different pricing.