Telecom operators are hoping that broadband will help them cash in on the new revenue streams being created by entertainment services, says IT research group, Analysys.
One of the big attractions of rolling out broadband is to enter in the three main entertainment revenue sources; video on demand, audio and online games. However, Analysys said: “While there is clearly a market for these services, there is a big question mark over how much of the value the telecom players can hope to capture.”
Currently, audio is already the bane of broadband providers’ lives, in that it generates huge amounts of traffic in file sharing services for very little revenue return, the report says.
Telecom operators will be up against strong competition in trying to succeed in the audio market but they do stand a chance says Analysys, although revenue must be shared with the content owners.
The report shows that video on demand (VOD) in Western Europe will be tricky, as the TV market is already sewn up and dominated by a few providers which leaves no room for new players. Again, if telecom operators manage to break in to the VOD market, a large chunk of the revenue will have to go to the content owners.
Multiplayer games will be of most interest to the telecom players, says Analysys, but with costs of high-performance links and services to be managed, a profitable niche in this market has yet to be found.
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