IPTV Set to Challenge Cable, Satellite TV

ROCHESTER, N.Y. — Imagine television programs being watched on your computer via a broadband connection — that may be the future of television, according to a recent survey by Harris Interactive, which says 56 percent of U.S. adults know of Internet protocol TV and are interested in adopting it for use on their TVs and home PCs.

IPTV is a digital television service that is delivered through Internet protocol over a broadband connection. And despite limited availability in the U.S., the survey shows how the adoption of IPTV may impact cable and satellite providers, as well as which types of providers may be able to capitalize on the new technology.

"It's no surprise to find that consumers want to save money on their cable or satellite bill, but the survey results also show that many consumers are quite interested in having access to a broad range of content to watch, at a time they determine,” Harris Interactive Vice President Milt Ellis said.

The survey, conducted Dec. 2-8 among 1,039 U.S. adults, shows that those interested in IPTV say their interest stems from the ability to save money, as IPTV is predicted to cost 42 percent less than cable or satellite; the ability to utilize the on-demand feature; the ability to receive more programming content; and the ability to utilize high-definition viewing, digital video recording and interactive program guide.

Twenty-six percent of those surveyed said they were interested in adopting IPTV for use on their TVs and 19 percent expressed interest in adopting IPTV for their computers. Only 4 percent said they’d adopt IPTV for use on their cell phones.

The survey results also suggest that IPTV could pose a formidable threat to cable and satellite services, as almost one in five of those people surveyed say they would cancel their existing cable or satellite TV service and use IPTV, while two-thirds say they would keep their existing cable or satellite TV service and give IPTV a trial run.

“If and when IPTV becomes a mainstream reality, it could be the best of times for consumers and IPTV providers and challenging times for the networks, as well as cable and satellite providers,” Ellis added.

Several adult companies have started offering videos via IPTV, including 3 Vision Entertainment, Wicked Pictures, New Sensations, Digital Sin, Zero Tolerance Entertainment and Third Degree Films. All have partnered with Entice.TV to offer adult content via a broadband connection and a standard computer video cable.

Other companies offering IPTV include ITVN, with its XTV, Akimbo and BT, a U.K.-based company which is set to roll out IPTV in the spring.

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