Monday, December 21, 2009

IPTV Business Opportunities

IPTV offers many business opportunities that range from providing specialty content to developing interactive media programs. After interviewing over 3100 companies at more than 190 industry trade shows, the top three opportunities I see in IPTV include content clearinghouses, advanced TV advertising, and television commerce (T-Commerce).

Content clearinghouses are companies or agencies that connect content providers to reach viewers in many systems without having to negotiate contracts with each owner or system operator. An example of key need for real-time content clearinghouses is for amateur sports content. Parents want to watch their children play sports no matter where they are located and they are willing to pay significant access fees for the opportunity. In addition to running content clearinghouse, there are many other business opportunities for the development and distribution of specialty content.

Advanced TV advertising offers the opportunity to increase advertising revenue by over 20 times while making the advertiser more satisfied (more sales) and the customer’s happier (more relevant ads). You can see how effective targeted advertising is by the success Internet advertising has (such as Google). A single click on Google results in an average cost of approximately 54 cents while the display of an ad on the Superbowl results in revenue of approximately 2 cents per viewer. The difference (25x ad revenue) is the value of targeted advertising. There are many opportunities here including the production of interactive ads, ad networks, and ad agencies.

Television commerce is the displaying of catalogs on TVs and processing of orders directly through television systems. T-commerce is the shifting of e-commerce to TV systems. Already, some countries generate over $1,000 per year in online sales per person and if this can shift to television purchases (when people are more relaxed), the average revenue per viewer for TV systems can more than double. Some of the key opportunities in T-commerce include hosting video catalogs, providing television order processing software, and integrating billing systems.

I cover many IPTV business opportunities in my IPTV Business Opportunities book.

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