A new trend emerging in television technology is that of “Internet Protocol TV,” also known as “IPTV.” Rather than viewing traditional television services through the terrestrial, satellite, or cable-based formats many customers are now choosing to watch shows and programs via IPTV. This trend is now catching fire in Canada. Many Canadian-based Internet Service Providers (ISPs) are now offering IPTV as part of a bundled package with their other Cloud-based hosted offerings.
According to Matt Stein, the CEO of Distributel Communications, “Our customers are asking for bundles. Television has been one of the primary things customers were asking for and we’re benefiting greatly by having it in our bundle.” Stein’s company serves around 200,000 customers and is partnering with Zazeem to offer IPTV. (SOURCE: http://www.fiercetelecom.com/story/small-canadian-isps-starting-offer-tv-service-bundles-using-telco-cable-net/2014-12-11).
VMedia and TekSavvy Solutions are two of the known ISPs in Canada that will be offering this bundled package. There are also 12 other ISPs that have announced their intention to offer bundled packages, including IPTV, to the Canadian Radio and Telecommunications Commission (CRTC).
Canadian ISPs face a number of key obstacles when offering these IPTV bundled packages. These stumbling blocks include purchasing and acquiring broadcasting rights, very low profit margins, and paying wholesale rates for the network bandwidth that is necessary to deliver IPTV services. This means there is an economic tradeoff in offering bundled packages versus the high cost of the bandwidth needed.
In the end, though, it is believed that customer demand for IPTV in a bundled package offering will far outweigh the obstacles outlined above.
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