Cloud TV: A Techno-Economic Approach in the Emerging Era of the Internet of Things

Cloud TV: A Techno-Economic Approach in the Emerging Era of the Internet of Things

Georgia Dede (Harokopio University of Athens, Greece), Georgios Loupatatzis (Harokopio University of Athens, Greece), Dimitris Grigoropoulos (Harokopio University of Athens, Greece), Georgios Chatzithanasis (Harokopio University of Athens, Greece), Thomas Kamalakis (Harokopio University of Athens, Greece), and Christos Michalakelis (Harokopio University of Athens, Greece)
Copyright: © 2020 |Pages: 15
DOI: 10.4018/IJCFA.2020010103
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Abstract

Cloud TV is a cloud-based live television streaming program or app, allowing the user to watch high definition (HD) TV channels without the requirement of a TV box or aerial but only a stable internet connection. As the number of Cloud TV channels continuously increases, so does the need for a techno-economic evaluation and analysis, which constitutes the aim of this paper. The analysis aims to provide an assessment of the required investment for a new Pay TV operator, using Cloud TV technology in the internet of things (IoT) era. The adopted methodology includes demand forecasting and cash flows calculations and important economic indicators, for a time period of 10 years and different diffusion scenarios. Evaluation of the methodology was based on statistics obtained from one of the larger telecom providers in Greece. Results indicate that investing on Cloud TV technology in Greece is feasible for the technologies of over-the-top (OTT), IPTV, and Smart TV. A sensitivity analysis is also performed, studying the case of a new entry for a Pay TV operator in the local market with emphasis on OTT services, which gains a significant percentage of customers.
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2. Cloud Tv Technology

Cloud TV technology provides television subscribers with greater flexibility when accessing live and recorded content. Cloud TV customers can easily stream and download DVR (Digital Video Recorder) shows to any Internet-enabled device. The advanced technology behind cloud TV allows for live in-home streaming and anywhere-access to a personal library of new television series or favorite movies. Cloud TV technology allows television subscribers to stream their saved recordings from anywhere. Innovations in Cloud TV provide an enhanced entertainment experience for the whole family. Any updates or innovations to Cloud TV functionality can be made available to users in real-time. According to different statistics, 85% of the total consumers prefer being recommended, where time-based recommendation engine holds a major part (Xfinity, 2017). From operator’s point of view there are also a lot of benefits like important (Key Performance Indicators) KPIs, traffic performance and data analytics regarding customers’ behaviour which will be an important tool for CLoud TV. It is possible for Pay TV operators to increase profitability by as much as 30% if they use data analytics across all parts of the organisation, execute well against new-found business insights and then test, iterate and optimise based on the outcomes.

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