Differentiate or suffer the consequences

The monetisation of broadband networks is likely to be one of the key differentiators between successful and not-so-successful service providers now and into the future. Georges Dabaghi, general manager of On Demand Group, the content management subsidiary of content aggregation and video-on-demand (VOD) specialist SeaChange International, identifies areas in which telecom service providers can gain from IPTV and video content delivered over their networks

George Dabaghi is general manager of On Demand Group, the content management subsidiary of SeaChange International

Earlier this year On Demand Group announced a partnership with South Africa-based mobile operator Vodacom to launch the first mobile TV subscription-based VOD service in Africa with the introduction of TV: On Demand in South Africa.

The service launched with a large library from On Demand Group’s studio and television partnerships providing popular series and hundreds of music videos.

TV: On Demand is wholly-owned and operated by On Demand Group and has been designed to provide a unique service to Vodacom’s 3G customers, who are able to watch the programme of their choice, on demand, as often as they want, for a single fee with no additional data charges.

Prior to reaching this agreement with Vodacom, On Demand Group, which serves cable, telco and mobile operators globally, launched a VOD service for Du in the UAE.

Du offers Du TV and Du TV+ on its IPTV platform. Features offered by Du TV include instant channels change capability, intuitive and simplified search, electronic programmes guide and picture-in-picture. With Du TV + an additional personal video recording feature of pause, rewind and record the live TV is included.

“On Demand Group comes with a great deal of specialisation in the areas of video content and content management,” explains Dabaghi. “We have 250,000 programmes offered over 12 service provider platforms, covering 10 million On Demand-enabled homes and 100 million mobile subscribers.”

While On Demand Group’s relationship with Du relates purely to the offer of content services, Dabaghi says the aim of successful IPTV and mobile TV services is to allow consumers to access them as frequently as they would like to, at the times that they would like to, and on the screen that they would like to. Thus service providers need to ensure their offerings are available on multi-screens such as the web, handsets, in the home, and on devices such as the iPad.

Given the heavy investment in broadband networks that continues to take place across the Middle East and Africa, service providers are obviously looking at ways in which to recoup their capital investments, and Dabaghi believes video content has a role to play in that equation.

Currently, service providers generate the majority of their revenues for broadband services from access charges, though industry experts believe this model will change in the future, with access becoming subject to utility pricing, which will ultimately become quite a negligible amount. Rather, it is forecast that consumers shall look to pay for the content available over broadband networks, and this is where value added services such as IPTV and mobile TV will help drive customer retention and help differentiate service providers from their competitors.

“Applications such as IPTV are something that operators need to invest in,” Dabaghi says. “And this investment cannot be viewed just from a straight return on investment perspective; the fact that such services offer a differentiator is important, and will only grow in importance as competition intensifies.”