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Reshaping the TV business 

The TV industry is facing a challenging period of transformation, and flexible regulation will be needed if the industry is not to fall victim to falling volumes, investments and profits.


Before the advent of high-speed wired and wireless broadband access networks, TV and media consumption was a one-directional scheduled entertainment activity, enjoyed, primarily, from the living room sofa.

But Rene Summer, Director of Government and Industry Relations for Ericsson, says: “Nowadays, a modern digital home has multiple high-definition flat screens, surround audio systems, set-top boxes, advanced video recorders, accessory devices such as PCs, and peripherals including web cameras, game consoles and mobile handsets.”

So, the industry must accept and adjust to the idea that consumers have increased their control over media consumption because they can choose what to consume, when, where and on which device. It is key for the industry to understand that as these consumers grow older, they will replace the older generations’ media habits, their new behavior will gain substantial market share and then become mainstream.

“These kinds of changes and challenges means that there will be a need for a greater degree of regulation and guidance,” Summer says.

High risks are associated with the sizable but necessary up-front heavy investment in next-generation networks. Clarity and predictability in regulation of these new networks is urgently needed to decrease the risks under which these enormous investments will be made.

Also, rivalry has increased, primarily between cable and telecom operators, as they have entered each other’s home turf of voice, internet and TV/media. They have also been regulated differently, which now results in an uneven playing field.

“Policy makers should give serious consideration to regulating applications and services, not technologies and that will go a long way toward removing barriers and unfair advantages related to specific technologies,” Summer says.

He says that regulators should work to stimulate market entry and evolution of personalized, managed TV and media distribution by encouraging an investment-friendly, non-government network framework.

But regulators also need to adapt to new consumer patterns giving a choice to enjoy TV and media anytime and anywhere. A global standard for key set-top box interfaces, to guarantee independence from the transmitting network, hardware-based encryption mechanisms and service providers is one measure that would allow consumers to personalize their TV and media consumption.

The unbundling of managed TV channel programming as an alternative to linear or scheduled transmission would also give consumers the ability to time-shift and personalize.

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