To compete with cable and satellite TV companies. AT&T Inc., Verizon Communications Inc. and a slew of competitive local exchange carriers, or CLECs, are pouring millions of dollars into Internet protocol television, or IPTV. Instead of using traditional broadcast, cable or satellite transmissions, IPTV delivers video using the same techniques developed for computer networks.
By the end of 2010, Verizon will have spent $23 billion to develop its FiOS fiber optic network. The FiOS service has 500,000 customers, with a primary draw being its IPTV service. Meanwhile, by the end of 2008, AT&T will have spent $6.5 billion on its U-verse IPTV service. Earlier this month, AT&T announced that U-verse has attracted 100,000 customers since debuting in January.
The closed network approach deployed by the telecoms pits them not only against the cable and satellite TV companies but also to some extent against the thousands of companies delivering video over the public Internet with content delivery networks from companies, including market leader Akamai Technologies Inc. and Limelight Networks Inc., which went public earlier this year. Also delivering products and services that marry the Internet with the TV are computer industry giants, such as Microsoft Corp., Apple Inc. and Hewlett-Packard Co., and TV makers, such as Sony Corp., and makers of set-top boxes with embedded IPTV capability.
For dealmakers, the IPTV sector is teeming with opportunities. Tech Confidential identifies 15 online video seed-stage fledglings and 10 venture-backed startups in our recent special report on digital convergence.
Continuing to spotlight the sector, we're exploring the state of IPTV technology development at our Convergence 2.0 Conference in New York City on Monday, Sept. 17. Please join me for a panel that includes:
- Scott Paterson, CEO, JumpTV Inc., the world’s largest broadcaster of ethnic television channels over the Internet with more than 280 channels from 70-plus countries and subscribers from more than 80 countries. JumpTV recently acquired an online global sports network from XOS Technologies Inc. for $60.25 million.
- Shelly Palmer, managing director, Advanced Media Ventures Group LLC, who writes the media biz blog Media3.0 and is the author of "Television Disrupted: The Transition from Network to Networked TV."
- Eric Small, vice president, entertainment products, AT&T, who is responsible for the telecom's U-verse service.
- Tom Westdyk, managing director, CIT Communications, media and entertainment group. Recently closed deals include an $850 million acquisition finance for Pacetec Holding Corp. and a $580 million acquisition financing for Knology Inc.
—Mary Kathleen Flynn
See Sept. 5 story in Investor's Business Daily
See Aug. 17 story on Limelight in TheDeal.com
See June 15 story on seed-stage companies in TheDeal.com
See June 18 story venture-backed companies in TheDeal.com
See info on Tech Confidential's Convergence 2.0 Conference
See July 19 story on Xos Technologies in TheDeal.com
See Media3.0 blog
See Sept .4 story on CLECs in TheDeal.com
See Feb. 16 story on Knology in TheDeal.com
Tags: media, web 2.0, vc, venture+capital
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