While IPTV promises to revolutionize the individual’s relationship with the TV screen, operators are developing their customers’ attachment to the new TV experience one step at a time, starting with familiar services such as video-on-demand and start-over TV, before moving them toward such interactive services as chat, file sharing, communities and user-generated content.

Eugene Sarmiento, Head of IPTV Sales Development, says that studies by Ericsson ConsumerLab show that even though consumers show a real interest in interactivity and personalization, “People are hesitant initially. They want to know, ‘How does it impact me? How does it impact my family?’”

Sarmiento says consumers still look primarily at price and content when choosing a TV provider, but on top of content-driven offerings, several tier-one telcos have successfully introduced next-generation services.

Verizon FiOS’ exclusive NFL (American football) content, which includes four camera angles, chat, player statistics and live interactivity, has generated subscriber loyalty in the Verizon IPTV service. PCCW Hong Kong’s live stock trading, movie ticket purchases and channel subscription control have dramatically driven up average revenue per user while adding tens of thousands of new subscribers. Free’s TV Perso user-generated content service has generated views of 128 million videos uploaded by subscribers.

“Once subscribers become used to services such as these, they’re less likely to shift to another provider,” Sarmiento says.

Every operator has its own roadmap for rolling out IPTV applications, and Ericsson’s end-to-end IPTV solution is geared for quick application development, rollout, beta testing and subsequent changes to the service. Sarmiento says: “You have to strike a balance between what consumers demand and what you can implement in the system that will drive change in attitudes and behavior.”

Sarmiento says Ericsson technology, through its TV solutions, enables operators to create a marketplace where content providers can easily offer and distribute niche programming, such as local sports events to smaller audiences.

However, IPTV potential extends beyond that of a stand-alone service. “Our vision is that IPTV is bundled as the entertainment element of what we call the ‘connected home.’ Not just bundled as a price package, but as a service package in which all devices in the home network interoperate seamlessly,” Sarmiento says. This meets consumer demands for a more personalized TV experience, such as the ability to push a home video from a camcorder directly to the TV screen, and mobile phone access to one’s personal library of audio and visual content.

“Ericsson’s strength is that we address the end-to-end requirements, not just for the TV screen but also in combination with the mobile and PC experience,” Sarmiento says. “By working toward device platform standardization through the Digital Living Network Alliance and Open IPTV Forum, we’re looking at an architecture that enables service blending. We’re going to be one of the first to bring out an architecture that allows operators to develop blended applications and quickly customize their TV service to consumers.”