IPTV networks (Internet Protocol television) are a system where a digital television service is delivered to viewers using the Internet Protocol over a network infrastructure. Utilizing the internet for such transmissions requires the video streams for TV to share the same servers, networks and data pipes as all other internet content.
- 131 million households forecasted to consume online video content within the next 2 years. Growth in 2007 for streaming media was 33%.
- Technical limitations in pipe bandwidth will require locating content closer on the network’s edge where consumption occurs, leading to continued growth in the high-end server market. Unit growth in server deployment rose by 50% in 2006 with streaming media servers growing at a rate of 74% in 2006.
- A major tipping point for growth of IPTV is seen as obtaining the needed ROI by offsetting the high capital infrastructure costs with the ability to stack more than 1 service on a single platform. Without the ability to stack, overbuilding occurs leading to inefficient sprawl, higher risks and lower ROI.
- Intelicloud’s Next Generation Network is the ideal solution for extracting better leverage out of these infrastructure expenditures with the unique capability of being able to stack multiple services on the same platform allowing IPTV to be more easily deployed and coexist with other transmissions
- 2 major challenges to providing a cost effective infrastructure for IPTV are scaling and power consumption.
- The scaling challenge means addressing the costs of increasing the infrastructure to support the new services without exceeding the revenues to be earned form these same services. These infrastructure investment costs are forecasted to grow 40% over the next 3 years to $72.5 billion annually in the US alone.
- Intelicloud’s Next Generation Network easily handles the scaling challenge with its multi-point, stackable solution that addresses the full eco-system. Further meeting the challenge is an upgradable system design built to accommodate future enhancements in communication speeds that extends the industry average 3-5 year lifecycle out to 5-10 years for the Intelicloud NGN.
- Power consumption is best illustrated in real dollars where service provider companies like AT&T are spending $1.5 billion on utility bills alone.
- Providing power consumption savings of at least 60% compared with competitive solutions, Intelicloud’s NGN pays for itself.
- The scaling challenge means addressing the costs of increasing the infrastructure to support the new services without exceeding the revenues to be earned form these same services. These infrastructure investment costs are forecasted to grow 40% over the next 3 years to $72.5 billion annually in the US alone.
- Having Intelicloud’s Next Generation Network in place will be a competitive advantage for service providers to capture higher ROI and a larger slice of the revenues to be generated from services such as IPTV. ITV-One Direct will also play a significant role in addressing this market opportunity through their content creation, content aggregation and content distribution capabilities.
