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Battleground IPTV : The allies – Reliance and Microsoft
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OK. This I predicted long back. IPTV is the next big thing in TV after DTH. Cable exhausted its capacity to carry channels long time back. Addition of more channels was only degrading the quality of channels. DTH came as a welcome change. The next logical step was to use the existing IP network for transmission. IPTV, as it is known as, is the use of the Internet protocol (IP) network for delivering the TV channels to your Television. Don’t confuse this with Mobile TV. IPTV is the full-fledged TV transmission to your TV set whereas Mobile TV is the viewing of TV on your Mobile screen.
Microsoft has long been in the game for IPTV, and the gamble now seems to pay off. With Reliance making a debut in the IPTV, expect a larger-than-life, pan-India deployment, followed by grand, in-your-face promotions and competitive pricing.
The partnership is strategic and Microsoft has entered, for the first time, in an exclusive deal with Reliance. This, they did not do n any other country. Now, that’s an interesting match. On drawing an analogy, Reliance is to India, what Microsoft is to the world, and for one, I am happy that somebody like Reliance has managed to work with Microsoft on its own terms.
The partnership is for 8 years. Reliance will be able to provide services like video-on-demand, digital video recording and personal media sharing. The service will run on Reliance’s optic-fibre media network.
The move is an important one for both the companies. For Microsoft, it’s important to show that their IPTV capabilities are for real and the years of hardwork that they have been putting into this, has finally paid off. Success in India can be a crucial factor, specially because India has a large TV-viewing population. Indians are fond of TV and entertainment content. With the right kind of pricing and content, Microsoft can showcase its IPTV platform to the world, which can then bring in additional business for it.
For Reliance, the move is absolutely crucial, especially because the ADAG group has been trying to make its presence felt in the entertainment and telecom sector. Reliance has a special position in this game. For one, it has the nation’s biggest optic fibre network spanning thirteen thousand towns and five lack villages. Reliance’s network literally reaches into every nook and corner of the country. Secondly, Reliance has an interest in the entertainment sector. It already has India’s biggest cinema-distribution and exhibition company, Adlabs, in its stable. Adlabs is also into production of contents, and this may provide Reliance with exclusive contents for its network, along with the regular TV channels. Airtel has previously said that in its IPTV offering it will just be an enabler in delivering the content to the audience and will not into content creation. Although, Bharti’s outsourcing model is considered as an outstanding example worldwide, the content creation capabilities may enable Reliance to give that extra edge to its offering and also help it price right.
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