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South Korean ISP Wants Cut Of Internet TV Profits From Google , Apple

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Feb 13, 2012.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    S. Korea ISP Wants Cut Of Internet TV Profits From Google, Apple | WebProNews (click for full article)

    "While Google, Apple, Samsung, and other technology leaders race to populate your living room with Internet-enabled televisions, an internet service provider in South Korea might be revealing itself to be a green-eyed monster for all that Internet TV action. KT Corp, South Korea's top ISP, has stated it will demand a cut in the profits that companies like Google and Samsung gain from services provided by Internet-enabled TVs.


    According to a Reuters report, the ISP is hoping to claim a stake in the budding Internet TV industry in order to "create a business model that enables [them] to share profits" gained from the use of their networks. They also rehash the usual complaint ISPs state in regard to these issues, saying the increase in streaming video could clog up their network speeds.



    Telecoms like KT Corp have been complaining about streaming services for a while now, so that's nothing new. What's novel in KT's approach is that, instead of trying to bilk their subscribers for money they want, they're trying to levy a toll from the companies that manufacture and sell Internet-enabled TVs to consumers instead of the consumers themselves. As if to accentuate the seriousness of their demand, KT has already throttled the access of TV applications offered by a Samsung TV."
     
  2. chopper

    chopper Active Member

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    Not nice!
     
  3. ChrisG8

    ChrisG8 Well-Known Member

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    Well, Logitech wants some help with the losses associated with their Google TV products, will the ISPs do both, share in profits and losses? This one is a stupid idea, the ISPs need to charge the party using their service, there is no reasonable way to charge the manufacturers of internet TV products which aren't profitable yet in any event. I don't doubt the problem is going to be a serious one as internet TV access increases but the only solution is to charge the proper fees for use of the service. Use based fees might be the only way for it to work.
     
  4. CatfishRivers

    CatfishRivers Well-Known Member

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    I agree that ISPs won't sit idly by if their TV subscription dwindles. The ball is in their court because in most cases they own the internet "pipes". The money will flow out of one pocket and into the other pocket.


    This IMO is a very understated issue concerning the future of GTV. Google is trying to do everything to make people watch more online - but they don't own the pipes. I think Google realizes that the ideal way to go would be if they owned the pipes themselves. Which is why they are laying fiber in Kansas City as a "trial". But actually laying fiber across the entire country would be a mammoth undertaking - that I don't think Google will pursue.


    Also IMO (as I mentioned on another thread) - it's a mistake for Google to 'force' users of the GTV YouTube app to watch the videos in HD. The ISPs will be adding caps, usage fees, throttling, etc. etc. These things are coming in the future IMO - and some users of the YouTube app might not want to expend the resources to play videos in HD.
     
  5. thedude

    thedude Member

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    Naturally, ISPs who also sell traditional multichannel are in a better position, but they also have more to lose. Verizon is doing the right thing by partnering with Redbox. I think carriers all realize that the next step in the television service model is a loose collection of IPTV "channels", some live and some on demand. The trick for them is not doing it too soon, causing losses in revenue from their traditional multichannel offerings.

    OTT is a big problem for carriers. It has completely turned peering on its ear. Analytics tools are evolving that will help ISPs better characterize the amount and the cost of carrying OTT traffic. Right now, it is still fairly difficult to account for each OTT stream.

    Sent from my Galaxy Nexus using Tapatalk
     

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