What is internet TV?

The strictest interpretation of this term indicates that it is simply television content delivered to the consumer via internet technology. However, this definition fails to clarify the complexity of the technology and the methods of content delivery used. Is it the delivery of programming over a closed network to a TV set-top box, or is it the viewing of video content via the open network of the world wide web on a PC monitor?

Whilst these two different models are often interchangeably labelled ipTV, it is the former that lays stronger claim to the term. ipTV is a closed, proprietary TV system such as those present today on cable or satellite services but instead delivered through IP technology over a secure network.

The viewing of video content on a PC linked to the internet is by consensus more accurately referred to as Internet TV. The key differentiator between this and ipTV is that consumers will have far greater control over what they view. Whilst ipTV subscribers will be able to view programming at their own convenience, the choice of what they view, however extensive this might be, is ultimately determined by the service provider. Using Internet TV, consumers will be able to access the content they want, from wherever they want, unconfined by the schedule of a single broadcaster.

What is VoD?

Video on Demand (VoD) services allow viewers to download content either to a set top box or their PC. Many consumers are no longer happy for broadcasters to dictate when they can watch their favourite programmes. They do not want to wait for the next season of Lost or Desperate Housewives to be aired in the UK when they know they can find them online. Unconstrained by the timing of scheduled broadcasting, consumers will be able to view it as and when they like.

VoD is a particularly strong proposition when used for the distribution of films. Consumers are already familiar with paying to view films on a pay per view basis, whether that is through their digital TV service or by going to the nearest Blockbuster store. Again the appeal comes back to the desire for convenience and choice. Movies on demand mean that consumers no longer need to worry about late fees or returning the DVD to the shop. It also allows media owners to offer a far greater range of films than they could on a conventional scheduled movie channel. Sky for instance offers more than 300 movies to download on their Sky by broadband service.

What is the difference between VoD and PPV?

Whilst consumers will probably pay for VoD on a programme by programme basis much like Pay-per-view (PPV), PPV is still constrained by the media owner’s schedule. It has two main applications, movies and live sport, the latter of which viewers are unlikely to want to pay to see after the event through a VoD service. PPV movies are usually broadcast across a number of channels with staggered starting times. Whilst this allows the viewer some flexibility, once they have paid for a specified starting time they only have the one chance to view it. This is also an expensive use of channel inventory by media owners. With VoD viewers will be able to pause the programming and come back to it, or even view it more than once.

What sectors are best suited to ipTV advertising?

All sectors will be able to use ipTV advertising effectively. TV advertising based around internet technology can not only build brands but encourage a ‘call to action’ from the consumer. When watching content online or on a television delivered via IP, users will be able to freeze the programming in order to interact with any advertising that attracts their attention, submit their details for further information on a brand or in some cases make an online purchase.

IpTV advertising could provide a gateway to internet advertising for sectors traditionally reluctant to embrace the medium. FMCG and retail brands for example will able to follow their audiences online using advertising methods they know and trust.

Content supplied by the Internet Advertising Bureau