"Fair Dinkum" Broadband to Bring Triple Play to Australian Consumersby 2006 predicts IDC
Announcement posted by IDC 01 Feb 2005
According to IDC's recent report "Australia Broadband Content Industry Development and Models: On its Way to Triple Play!", broadband content will represent a key strategic opportunity for Broadband Service Providers (BSPs) within the next 2 years to differentiate and increase their revenue in a highly competitive market.
"Just as VoIP is adopted by consumers, providing lower costs and better value, IP-TV is the next set of services that will leverage broadband and bring entertainment via the same pipes. In Australia we are observing new offerings in the Australian market, combining IP-TV, broadband access and voice over a single network which are called triple-play services" says Landry Fevre IDC Research Director for Telecommunications.
In Europe, many competitive carriers launched their content offerings bundled with broadband as a differentiator, which ignited the market. European incumbent telcos responded by entering the fray with similar offerings driving strong adoption for such services as they bring the scale to the game. With Australia about 24 months behind Europe, IDC expects multiple IP-TV offerings appearing only by 2006 in Australia.
"Fair Dinkum" broadband (speed above 3 Mbps) that allows triple play services is still many years away for Australians when compared to trailblazing offerings from Yahoo!BB in Japan which offers Gigabit to the home and the French company, Iliad which provides ADSL2+ 15 Mpbs download speed. These offerings are a far cry to the mere 256Kpbs that about 70% of Australian broadband subscribers "enjoy" today.
During this intermediary situation, online DVD startups have been able to build vast libraries in only a few months and a strong customer database with usage and preferences. Online DVD rental models shows that subscribers are willing to pay recurring fees for content of high quality and DVD-like quality and should be the benchmark for online entertainment services such as VoD (Video-on-Demand) or multichannel TV. Online DVD rentals have redefined the video rental business demonstrating possibilities for video on demand delivery.
"The online channel has a unique value proposition in providing instant access to content with the transmission to multiple devices and on demand, however most Australian broadband service providers still need to understand that entertainment content is consumed in the living room away from the PC", added Landry Fevre.
IDC's research shows that convenience, simplicity and cost are the three pillars of a successful consumer offering and this should be considered while rolling out VoD solutions.
Subscribe to IDC press releases and newsletters online at http://www.idc.com.au/newsletters/register/
About IDC
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyse and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organisations. IDC is a subsidiary of IDG, the worlds leading technology media, research, and events company. Additional information can be found at www.idc.com.au.
"Just as VoIP is adopted by consumers, providing lower costs and better value, IP-TV is the next set of services that will leverage broadband and bring entertainment via the same pipes. In Australia we are observing new offerings in the Australian market, combining IP-TV, broadband access and voice over a single network which are called triple-play services" says Landry Fevre IDC Research Director for Telecommunications.
In Europe, many competitive carriers launched their content offerings bundled with broadband as a differentiator, which ignited the market. European incumbent telcos responded by entering the fray with similar offerings driving strong adoption for such services as they bring the scale to the game. With Australia about 24 months behind Europe, IDC expects multiple IP-TV offerings appearing only by 2006 in Australia.
"Fair Dinkum" broadband (speed above 3 Mbps) that allows triple play services is still many years away for Australians when compared to trailblazing offerings from Yahoo!BB in Japan which offers Gigabit to the home and the French company, Iliad which provides ADSL2+ 15 Mpbs download speed. These offerings are a far cry to the mere 256Kpbs that about 70% of Australian broadband subscribers "enjoy" today.
During this intermediary situation, online DVD startups have been able to build vast libraries in only a few months and a strong customer database with usage and preferences. Online DVD rental models shows that subscribers are willing to pay recurring fees for content of high quality and DVD-like quality and should be the benchmark for online entertainment services such as VoD (Video-on-Demand) or multichannel TV. Online DVD rentals have redefined the video rental business demonstrating possibilities for video on demand delivery.
"The online channel has a unique value proposition in providing instant access to content with the transmission to multiple devices and on demand, however most Australian broadband service providers still need to understand that entertainment content is consumed in the living room away from the PC", added Landry Fevre.
IDC's research shows that convenience, simplicity and cost are the three pillars of a successful consumer offering and this should be considered while rolling out VoD solutions.
Subscribe to IDC press releases and newsletters online at http://www.idc.com.au/newsletters/register/
About IDC
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyse and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organisations. IDC is a subsidiary of IDG, the worlds leading technology media, research, and events company. Additional information can be found at www.idc.com.au.