1.Introduction to IPTV

IPTV, or Internet Protocol Television, is gaining increasing influence within the media industry. In stark contrast to traditional TV broadcasting methods that use pricey and primarily proprietary broadcasting technologies, IPTV is delivered over broadband networks by using the same Internet Protocol (IP) that supports millions of personal computers on the modern Internet. The concept that the same shift towards on-demand services lies ahead for the era of multiscreen TV consumption has already captured the interest of various interested parties in the technology convergence and future potential.

Audiences have now started to watch TV programs and other video content in a variety of locations and on a variety of devices such as mobile phones, desktops, laptops, PDAs, and additional tools, aside from using good old TV sets. IPTV is still in its early stages as a service. It is undergoing significant growth, and different commercial approaches are emerging that may help support growth.

Some argue that economical content creation will likely be the first area of content development to transition to smaller devices and explore long-tail strategies. Operating on the economic aspect of the TV broadcasting pipeline, the current state of IPTV services and infrastructure, however, has several clear advantages over its cable and satellite competitors. They include HDTV, on-demand viewing, personal digital video recorders, voice, online features, and responsive customer care via alternative communication channels such as cell phones, PDAs, global communication devices, etc.

For IPTV hosting to work efficiently, however, the internet gateway, the primary networking hub, and the IPTV server consisting of content converters and server hardware configurations have to collaborate seamlessly. Numerous regional and national hosting facilities must be fully redundant or else the broadcast-quality signals fail, shows may vanish and fail to record, communication halts, the visual display vanishes, the sound becomes interrupted, and the shows and services will not work well.

This text will discuss the competitive environment for IPTV services in the United Kingdom and the United States. Through such a side-by-side examination, a series of meaningful public policy considerations across multiple focus areas can be revealed.

2.Regulatory Framework in the UK and the US

According to the legal theory and associated scholarly discussions, the choice of the regulation strategy and the policy specifics depend on perspectives on the marketplace. The regulation of media involves competition-focused regulations, media control and proprietorship, consumer rights, and the defense of sensitive demographics.

Therefore, if the goal is to manage the market, we need to grasp what media markets look like. Whether it is about proprietorship caps, market competition assessments, consumer rights, or child-focused media, the regulator has to possess insight into these areas; which media sectors are growing at a fast pace, where we have competitive dynamics, vertically integrated activities, and cross-sector proprietorship, and which sectors are slow to compete and ready for innovative approaches of key participants.

Put simply, the current media market environment has already changed from the static to the dynamic, and only if we reflect on the policymakers can we predict future developments.

The growth of IPTV everywhere normalizes us to its dissemination. By combining standard TV features with cutting-edge services such as interactive digital features, IPTV has the potential to be a key part of increasing the local attractiveness of remote areas. If so, will this be sufficient for the regulator to adapt its strategy?

We have no data that IPTV has an additional appeal to the people who do not subscribe to cable or DTH. However, some recent developments have hindered IPTV expansion – and it is these developments that have led to dampened forecasts about IPTV's future.

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

3.Market Leaders and Distribution

In the UK, BT is the key player in the UK IPTV market with a 1.18% market share, and YouView has a 2.8% share, which is the context of basic and dual-play service models. BT is usually the leader in the UK based on statistics, although it varies marginally over time across the 7 to 9 percent bracket.

In the United Kingdom, Virgin Media was the pioneer in launching IPTV through HFC infrastructure, followed shortly by BT. Netflix and Amazon Prime are the dominant streaming providers in the UK IPTV market. Amazon has its own set-top device-centered platform called Amazon Fire TV, akin to Roku, and has just launched in the UK. However, Netflix and Amazon are absent from telecom providers' offerings.

In the American market, AT&T is the top provider with a market share of 17.31%, outperforming Verizon’s FiOS at 16.88%. However, considering only DSL-delivered IPTV, the leader is CenturyLink, followed by AT&T and Frontier, and Lumen.

Cable TV has the majority hold of the American market, with AT&T managing to attract 16.5 million IPTV customers, primarily through its U-verse service and DirecTV service, which also operates in the Latin American market. The US market is, therefore, divided between the main traditional telephone companies offering IPTV services and modern digital entrants.

In Western markets, key providers offer integrated service packages or a strategy focusing on loyal users for the majority of their marketing, including triple and quadruple play. In the United States, AT&T, Verizon, and Lumen primarily rely on self-owned networks or existing telecom networks to provide IPTV options, albeit on a smaller scale.

4.Subscription Types and Media Content

There are differences in the content offerings in the IPTV sectors of the UK and US. The potential selection of content includes live broadcasts from national and regional networks, streaming content and episodes, pre-recorded shows, and original shows like TV shows or movies exclusive to the platform that aren’t sold as videos or broadcasted beyond the service.

The UK services offer traditional rankings of channels comparable with the UK cable platforms. They also include medium-tier bundles that include the key pay TV set of channels. Content is grouped not just by preferences, but by platform: terrestrial, satellite, Freeview, and BT Vision VOD.

The key differences 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 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 long-term plan.

Content partnerships underline the different legal regimes for media markets in the US and UK. The era of condensed content timelines and the ongoing change in the market has significant implications, the most direct being the business standing of the UK’s primary IPTV operator.

Although a recent newcomer to the busy and contested UK TV sector, Setanta is positioned to gain significant traction through appearing cutting-edge and securing top-tier international rights. The strength of the brands is a significant advantage, combined with a product that has a affordable structure and offers die-hard UK football supporters with an appealing supplementary option.

5.Future of IPTV and Tech Evolution

5G networks, in conjunction with millions of IoT devices, have disrupted IPTV evolution with the integration of AI and machine learning. Cloud computing is significantly complementing AI systems to implement new capabilities. Proprietary AI recommendation systems are gaining traction by media platforms to enhance user engagement with their own distinctive features. The video industry has been revolutionized with a fresh wave of innovation.

A enhanced bitrate, via better resolution or improved frame rates, has been a primary focus in enhancing viewer engagement 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 reduced complexity are close to deployment. Rather than pushing for new features, such software stacks would allow streaming platforms to prioritize system efficiency to further enhance user experience. This paradigm, like the previous ones, depended on consumer attitudes and their desire to see value for their money.

In the near future, as rapid tech uptake creates a level playing field in audience engagement and industry growth reaches equilibrium, we foresee a more streamlined tech environment to keep older audiences interested.

We emphasize a couple of critical aspects below for both IPTV markets.

1. All the major stakeholders may contribute to the next phase in media engagement by transforming traditional programming into interactive experiences.

2. We see VR and AR as the primary forces behind the growth trajectories for these domains.

The shifting viewer behaviors puts information at the forefront for every stakeholder. Legal boundaries would restrict unrestricted availability to consumers' personal data; hence, privacy regulations would not be too keen here on adopting new technologies that may risk consumer security. However, the existing VOD ecosystem makes one think otherwise.

The IT security score is presently at an all-time low. Technological leaps and bounds have made system hacking more virtual than a job done hand-to-hand, thereby advantaging digital fraudsters at a greater extent than traditional thieves.

With the advent of hub-based technology, demand for IPTV has been increasing rapidly. Depending on customer preferences, 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