IPTV Rollouts in Asia/Pacific are not for Faint of Heart but Needed to Gain Market...

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Tue Jun 30, 2009 9:01am EDT

IPTV Rollouts in Asia/Pacific are not for Faint of Heart but Needed to Gain
Market Share, says Pyramid

CAMBRIDGE, Mass., June 30 /PRNewswire-FirstCall/ -- Despite the massive
investments necessary in Asia/Pacific's IPTV market, both in technology and
content procurement, telecom operators must invest to gain subscriber market
share according to a new report from Pyramid Research (www.pyr.com), the
telecom research arm of the Light Reading Communications Network
(www.lightreading.com).

IPTV in Asia/Pacific: Profit Picture Fuzzy, but Momentum Building analyzes the
challenges facing IPTV providers and looks at the key drivers behind service
rollouts in Asia/Pacific. The 13-page report includes two case studies
focusing on Hong Kong and South Korea, providing insights into the different
strategies used by operators in each market to gain a foothold in the highly
competitive broadcasting space.  Download an excerpt of this report here:
http://www.pyramidresearch.com/downloads.htm?id=5&sc=PR063009_INAP1.3. Media
Forecasts are also available for 14 markets in Asia/Pacific and provide
competitive intelligence on the pay-TV and mobile TV dynamics, market share
information at both the technology and operator levels, and five-year adoption
and revenue projections. Learn more here: http://www.pyr.com/mediafcst.htm. 

Although Asia/Pacific has the distinction of having the most successful IPTV
operators globally, and rollouts continue throughout the region, operators
continue to face challenges in three key areas: regulatory constraints,
content, and technology costs, notes Charles Moon, analysts at Pyramid
Research and author of the report. "Typically, regulatory issues come first,
then the mammoth challenge of valuing and procuring content along with
technology issues - both of which can affect subscriber take-up and bottom
lines," says Moon.   

"One of the most glaring problems surrounding IPTV has been the lack of any
framework around the service, putting it in a gray area, with neither the
telecom nor broadcasting regulators having clear oversight of the sector,"
says Moon.  Also, the initial investments required in order to acquire content
can be prohibitive for smaller players. "To make matters worse, the entrenched
position of cable companies in markets like Japan and South Korea make it even
more difficult for new IPTV players to negotiate for content rights," he
explains. "In addition to the lack of adequate infrastructure and the high
cost of STBs hindering adoption, the fight to defend market share is
intensifying."

Asia/Pacific provides good lessons for operators faced with developing a
business case for IPTV services and determining an appropriate strategy for
long-term success.  "We believe the long-term opportunities that IPTV brings
outweigh the short-term risks," Moons says. "The promise of media, and the
escape it provides from dumb-pipe business models, is encouraging carriers to
take risks and make grabs for market share," he adds. "Further, the benefits
associated from capturing customers - such as lower churn, new service
provisioning, and higher cash flows - provide a case for short-term
sacrifices."  

IPTV in Asia/Pacific: Profit Picture Fuzzy, but Momentum Building is part of
Pyramid Research's Asia/Pacific Telecom Insider report series. Telecom
Insiders are packed with trend analysis, industry best practices, market
sizing and forecasting, competitor analysis, and case studies, providing you
information you can leverage to make better business decisions.

Download an excerpt of this report here:
http://www.pyramidresearch.com/downloads.htm?id=5&sc=PR063009_INAP1.3. This
report is priced at $595 and can be purchased online here:
http://www.pyramidresearch.com/store/ins_ap_090615.htm?sc=PR063009_INAP1.3 or
by contacting Jeff Claudino via email at claudino@pyr.com or telephone at
+1-619-229-9940.

About Pyramid Research
Pyramid Research (www.pyr.com) offers practical solutions to the complex
demands our clients face in the telecommunications, media and technology
industries. Our analysis is uniquely positioned at the intersection of
emerging markets, emerging technologies and emerging business models, powered
by the bottom-up methodology of our market forecasts for over 100 countries-a
distinction that has remained unmatched for more than 25 years. As the telecom
research arm of the Light Reading Communications Network, Pyramid Research
works with Heavy Reading, providing the communications industry's most
comprehensive market data, trusted research and insightful technology
analysis.

About Light Reading
Founded in 2000, Light Reading (www.lightreading.com) is the leading online
media, research, and focused event company serving the $3 trillion worldwide
communications market. Lightreading.com is the ultimate source for technology
and financial analysis of the communications industry, leading the media
sector in terms of traffic, content, and reputation. Light Reading's research
arms, Heavy Reading and Pyramid Research, provide the most comprehensive
communications research, market data, and technology analysis in close to 100
markets around the world. Light Reading produces nearly 20 targeted
communications events including TelcoTV, Ethernet Expo New York and Ethernet
Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as focused
one-day events tailored for cable, mobile, and wireline executives. Light
Reading was acquired by United Business Media in August 2005 and operates as a
unit of TechWeb.

About TechWeb
TechWeb (http://techweb.com/aboutus), the global leader in business technology
media, is an innovative business focused on serving the needs of technology
decision-makers and marketers worldwide. TechWeb produces the most respected
and consumed media brands in the business technology market. Today, more than
13.3 million* business technology professionals actively engage in our
communities created around our global face-to-face events, Interop, Web 2.0,
Black Hat, and VoiceCon; online resources such as the TechWeb Network, Light
Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The
Financial Technology Network; and the market leading, award-winning
InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street & Technology
magazines. TechWeb also provides end-to-end services including next-generation
performance marketing, integrated media, research, and analyst services.
TechWeb is a division of United Business Media, a global provider of news
distribution and specialist information services with a market capitalization
of more than $2.5 billion.

*13.3 million business decision-makers: based on number of monthly connections

About United Business Media Limited
UBM (UBM.L) focuses on two principal activities: worldwide information
distribution, targeting and monitoring; and, the development and monetization
of B2B communities and markets. UBM's businesses inform markets and serve
professional commercial communities - from doctors to game developers, from
journalists to jewelry traders, from farmers to pharmacists - with integrated
events, online, print and business information products. Our 6,500 staff in
more than 30 countries are organized into specialist teams that serve these
communities, bringing buyers and sellers together, helping them to do business
and their markets to work effectively and efficiently. For more information,
go to http://www.unitedbusinessmedia.com.
    Press contact:
    Jennifer Baker
    +1 617 871-1910
    jbaker@pyr.com



SOURCE  Pyramid Research

Jennifer Baker of Pyramid Research, +1-617-871-1910, jbaker@pyr.com
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