Kumar says that the company receives 90% of the broadcast revenue, 80% of the advertising revenue, and 70% of the revenue for interactive services like video-on-demand from telecom operators. Typically, Kumar says, 15-20% of revenues are given to the content partner. So it appears that MTNL and BSNL, two telecom operators trying desperately to stem the decline in wireline connections, have given a bulk of the share to the IPTV service providers. Though he hasn’t specified it, we would be surprised if IPTV service providers get anything share of the access charges (broadband) that a subscriber pays. IPTV is a wireline Value Added Service (VAS) – at least, that’s what an operator will say.In comparison, VAS for the wireless get a miniscule revenue share. However, one must keep in mind that the IPTV service providers not only have a lower base of subscribers to cater to, as compared to the mobile space, but they also have to take care of costs of acquisition of content, customer acquisition, service provision and billing. Many of these costs are borne by the telecom operator in a wireless context.
In April this year Kumar told MediaNama that the company is targeting 2.5-3 million users in the next five years”, though he tells IPTV News now that the company expects to achieve the same number in “a couple of years”. Market sentiment appears to be more optimistic than in April, it appears.
MyWay operates in 29 of 54 cities where IPTV is operational, and the company is planning to launch “online transactions on the service, enabling users to book movie tickets and purchase airline tickets”, among others. And you wonder why we think IPTV is a just a limited form of the Internet.