Poor cable service quality, coupled with a lack of customer support, combine to create real customer dissatisfaction. These are the kinds of annoyances that inevitably steer subscribers toward other service providers. And at present, this is translating into a major growth opportunity for telecom video services, according to a recent study from ABI Research on the IP set-top box market.
Verizon and AT&T are beginning to expand their homes passed as well, building out their network upgrades while continuing to work with satellite partners. Interactive services could be a significant differentiator that will help them acquire subscribers in the battle against cable operators. “The interactive nature of the offerings that derive from telcos is proving to be a strategic advantage as we move toward IPTV offerings,” Schatt added. “Interactive advertising may not be a force right now, but down the road it will be a way for operators to target specific homes with specific ads, and to let people respond to the ads. Once again, this requires two-way communication.”