Tuesday, November 21, 2006

IP Communications Services -- Fueling Media Company Growth

Recently, The Wall Street Journal Journal reported that Time Warner's net profits nearly tripled. This follows Comcast's recent announcement of a fivefold jump in third quarter profits.

A key common thread underscored in both announcements is each company's success in selling IP telephony services. In the words of Matthew Karnitschnig of The Wall Street Journal, "[c]able operators have been showing progress in fighting competition from satellite-TV and phone companies by selling lots of high-speed Internet, video and phone packages."

The so-called "triple play" is certainly alive and well. And, quality and product differentiation will continue to fuel such growth -- including the addition of mobile/wireless telephony services, thereby making these services "quadruple."

Video will play an increasingly central part of these "plays". In fact, in Mike Katz's recent article "Mobile Video Applications are 'Ready to Rock'" from Internet Telephony magazine, Katz cites a market for "Mobile TV" revenue worldwide to hit nearly $6 Billion (with a capital "B") in 2009. And, Katz is NOT just talking about video on demand or mobile TV. Katz discusses the significant market opportunities for live mobile video for "see what I'm seeing" and other communications purposes (in fact, Katz indicates that "see what I see" live mobile video is the third most forecast application). I have covered this territory before and certainly agree that the market potential here is enormous for all of these mobile video applications -- both for entertainment and communications/interactivity purposes.