Uncategorized

3 steps to launch a successful IPTV Channel

Quick notes I took from Kenneth Wong’s presentation at Broadband World Forum on how PCCW launched what is now one of the world’s most successful deployments of IPTV (along with Iliad in France).

PCCW currently claims 882,000 subscribers
Channels have gone from 23 channels to 160
Reduced churn of customers to half a percent.
Broadband subs increased 11%

Major challenge to starting an IPTV channel: Content providers want security and scale.

Phase 1: Bootstrap
- Enrich content - Moved from 23 to 160 channels
- Accessible pricing - Allow a low point of entry

Phase 2: Build audience and revenue
- Drive up the revenue per user - Offer minipacks and special channels.
- Mass market packages

Phase 3: Cash in on Mass Media Status
- Exclusive deals with content providers
- Build up interactivity - selling tickets, shopping, stock broking, banking (Only came after 500k subscribers, so that have become a mass media. Only at scale does it work based on transactional basis. Movie trailer channel allows you to see trailers and then select the seats you wish to have 60HKD, PCCW gets $6 on top.)
- Offer “quad play” - TV, PC, mobile, telephone. Don’t aim to narrowly increase ARPU, but aim for a larger portion of the user’s wallet in all section.
- photos service

Other important aspects:

1- Operating principles
- Content providers have fantastic brands, keep their needs in focus - HBO, ESPN - not your own needs. This changes the relationship with the content providers.
- High quality service.
- Allow a buying on screen option.
- Offer an a la carte structure.

2- Built your own system to manage content.
Above all PCCW wanted to have a trusted partnership with content providers, so decided to build their own. (Iliad did the same). PCCW’s system has had zero piracy to date. IE: Not one single pirated box on sale in the market. This is an achievement since it is an inexpensive box, that should be pirate-able.

3- Keep your set top box CHEAP.
- Use simple solutions
- Give users choice
- Make quality better than cable
- Must be easy to use
- a la carte offerings
- Concentrate on CRM and respond to customer issues
- Content provider relations are key. You need their trust.
- Need In-House experts to develop new products and sustain a high quality of service.

© 2008 Thomas Crampton | Developed by Oursky Limited