This month we interviewed the founder and CEO of Wherever Television (Wherever TV), Mark Cavicchia, to learn about the successful practices of managing public Internet television services. Mark explained the opportunities and challenges he has experienced providing Internet TV services.

Internet Television Service

Internet television (also called Broadband TV or Over the Top Television) allows consumers to watch television programs through public broadband Internet connections directly and without cost. Internet TV services are being offered by companies new to television broadcasting while existing broadcasters are being given the chance to expand out of traditional geographic boundaries.

Internet TV Viewing Devices

Internet TV can be viewed by multimedia computers, televisions (using Internet TV receivers), and multimedia mobile devices (mobile telephones).

Multimedia Computers

Multimedia computers may watch Internet TV programs through the use of media players (such as Internet Explorer with the installed Media Player plug-in). The consumer simply enters the web address of an Internet streaming TV channel into the browser/media player and the multimedia computer connects and begins to receive and play the desired TV program.

While it may seem simple, finding or obtaining the web address of the TV station is not always easy and the Internet TV channel web address usually contains channel configuration options (data rates and compression types). These options may need to change for certain locations and media player types.

Internet Set Top Boxes

When consumers desire to watch Internet TV on standard televisions, they can use an Internet set top box. An Internet STB is an electronic device that adapts streaming media, which is sent through the public Internet, into a format that is accessible by the end user on a television. The Internet STB usually creates a television like viewing experience which includes the display of a programming guide and the use of a remote control. 

Some Internet TV access devices that have been introduced since 2007 include Apple TV, NetFlix, Roku, Sling Media's Slingcatcher, VuNow, and the WhereverTV receiver. These devices allow viewers to watch television content through the Internet without the use of a computer.

IP Television Sets

An IP television set is a viewing device that is specifically designed to video digital television signals through IP data networks (such as the Internet) without the need for a signal conversion set top box. IP television sets have been used in large hotels for several years (made by Philips). 

In January 2009, Yahoo! and Intel announced their plans to integrate a chip into consumer televisions made by Sony, Samsung, LG and Vizio. This integration will allow IP based content sources to directly stream and display on televisions and provide advanced interactive services (widgets).

Key Demands for Internet Television

The key need for Internet television lies within the viewers' desires to access niche types of programming and multiple devices, and the need for place shifting. 

Niche Programming

Niche programming is media or programs that appeal or are designed to appeal to an audience with specific interests (such as matchbook collectors). Traditional television broadcast systems are limited on the number of programs that they can offer to viewers. Companies that broadcast their content in streaming form on the Internet can reach customers worldwide, making it economical for them to develop and broadcast specialty programming.

Television Roaming (Place Shifting)

Television roaming is the ability to view content or programs at locations other than those at which they were originally received. Television roaming allows for the viewing of media programs (such as movies or television channels) at any location that has a multimedia viewing device and a broadband connection.

In March 2009 Time Warner Cable announced plans to introduce the development of a television roaming service called "TV Everywhere". The TV Everywhere service will allow Time Warner Cable subscribers to watch their subscription services on PCs or mobile phones. 

Multiple Device Services (Portability)

A portability package is a device and/or service that allows consumers to receive services at remote locations. A portability package can contain fees for equipment rental (if the consumer does not have a device capable of receiving the services) as well as service access and usage fees.

Public Internet television broadcasters need effective tools to select, manage and control the delivery of content and services.

Television Viewing Habits

Viewing habits are the characteristics that define how a person views media. Viewing habits may include amount of viewing, viewing times, channel changing patterns, program categories and media purchases. 

Internet TV Content Sources

Internet TV content sources include unmanaged (free) and premium (fee based) video programs.

Unmanaged Internet Television Channels

Unmanaged Internet television channels are media program sources that are transferred from television content providers to viewers through Internet connections. Internet television channels may be provided in real time (streaming) or in stored formats (downloadable). In 2009, there were more than 25,000 live television channels in the world and more than 3,000 of these channels were broadcasting (streaming) over the Internet for free. 

Broadband Only TV Channels

Broadband only TV channels are media programs that are only transmitted through Internet broadband connections. Content owners may choose to provide content only through broadband connections to avoid network transmission costs or to enable them to offer specialty content to viewers who are distributed over large geographic regions, making broadcast of those channels non-cost-effective on traditional television broadcast networks. Broadcast only channels include Scuba TV, Single Malt TV, Wildlife TV, and a number of other channels focused on niche oriented subjects.

WebCams

Web cameras convert images into a digital form that can be sent through the Internet. Some of the more common uses for public webcams include traffic cameras, security surveillance, and event coverage (such as concerts). Web cams may provide access for free or viewers may be required to login for paid access controls.

User Generated Content (UGC)

User generated content is information that is produced by users of similar content. In January 2009, over 14.8 billion videos were viewed through the Internet and approximately 43% of these viewings occurred on Google's YouTube.com site, which had over 100 million viewers.

Short Form Videos Clips

Short form video clips are media segments that are usually less than 10 minutes long. These clips may be isolated video segments (such as the launch of a space shuttle) or they may be a short portion of a larger movie or video (a video clip of a famous movie scene).

Short form video clips are available through Internet video search portals such as Truveo.com, Veoh.com, and many others.

Home Media Links

Home media links are addresses that allow connections to be made through the Internet to digital files that are stored on home computers or media centers. Home media links may be used by public or private groups of people to allow access to their personal media channels.

File Sharing Platforms

File sharing platforms are networks that allow content to be shared between members on a platform (peer-to-peer). An example of a file sharing platform is BitTorrent.com.

Figure 1.1 shows some types of unmanaged (public) video content sources for Internet TV. Internet television channels are transmitted directly from television networks and movie studios. Webcams can provide viewers with access to real-time video of public places, security monitoring, and viewing of other interesting locations. User generated content allows TV viewers to see shared content on their televisions instead of having to view them on multimedia computers

Short form video clips provide viewers with new independent sources of content that may not be available on traditional television networks. Home media links provide users with access to home media programs through the Internet. File sharing enables viewers to share content with viewers at other locations.

Premium Content (Paid Internet Television)

Premium content is media or data that is classified as having higher value than the services and items that are included in the current rate plan. Premium content may be offered in the form of subscription services which bundle programs into a television channel or it may be offered on a usage based service where the user is charged for the content they view or authorize for viewing.

There is a growing trend of making premium content available directly from the content owner via the Internet. For this owner to consumer content, the broadcaster only provides a connection path between the content owner and the consumer.

Some content owners provide premium (paid) programming through broadband only packages. These include packages from Setanta Sports, Major League Baseball, and Netflix.

Figure 1.1., Internet TV Content Sources Source: Wherever.TV

Internet TV Revenue Sources

Internet TV revenue sources include access subscription fees, content fees (pay per view), and advertising revenue. 

Access Subscription and Usage Fees

An access subscription fee is a fee that is paid for the use of a network, service, or communication session. An example of access subscription fees is the requirement for an access subscription to network service to obtain access to online programs or movies. 

Usage fees are the charges billed to a customer for the usage of a product or service. An example of a usage fee is a charge for viewing a program or for providing access periods to watch a movie.

Advertising Revenue

Advertising revenue is the generation of receivable value (money or bartered services) that is created through the delivery or presentation of messages to people or companies.

In 2007, approximately 1/3 of the $449 billion global advertising budgets are spent on television ads. In 2006 the United States (the leader in television advertising spending) spent $48.4 billion on advertising revenue (approximately $161 per person). In 2006, Internet advertising was $16.8 billion and us growing at more than 25% per year.

Mark Cavicchia is the founder and CEO of WhereverTV. WhereverTV is an Internet TV management platform that allows viewers to connect to channels of streaming programs available on the Internet to television through an Internet TV receiver. 

For more information:

2715 Sarah Street

Pittsburgh, Pennsylvania 15203

Tel +1 412 663 0094

Fax +1 772 619 0922

Email: info@wherever.tv

Website: www.wherever.tv