Wednesday, September 05, 2007
IPTV Will Require Creative Marketing

IPTV brings a host of benefits to service providers, including another competitive service offering to add their converged service bundles.  However, uptake for IPTV services in the United States has been slower than expected.

So, IPTV service providers are starting to get creative.  There is a post on the Daily IPTV blog by David Cotriss titled, "Ice Cream Trucks, Freebies and... IPTV?" that discusses the innovative ways that IPTV service providers are trying to get the word out about their offerings.  Here's an excerpt from the blog posting about local guerrilla marketing using an ice cream truck:

“Because Verizon's and AT&T's services are still available in very limited areas, they're focusing on locally-targeted advertising and promotion,” said Len Feldman, director of IPTV analysis at Multimedia Research Group, Inc. “For example, in Connecticut, AT&T is using an ice cream truck that's equipped with a large flat-panel display to introduce U-Verse to potential customers.”
 
This is an example of innovative word of mouth at work. This gem comes via a story in the New England-based Hartford Courant, which explains that the truck circles “Little League fields, train stations and suburban cul-de-sacs” showing U-verse programming. AT&T is also using wine and cheese parties and movie nights, among other methods, to lure customers where service is available. There’s no indication of how effective these methods are so far.

This type of localized marketing can create a grass roots momentum shift for IPTV service providers, as customers in these communities see local involvement and a willingness to participate in the community.  In fact, sometimes the community will get involved if there is a local champion:

The most outrageous example, however, comes by way of the “Bobby Choice” campaign, in which a Norwalk, Connecticut man is using the fictional name Bobby Choice to campaign against Cablevision’s monopoly in the city, hoping to give residents more choice of cable providers.  His web site, www.bobbychoice.com, documents his activities as he embarks on the campaign.  He has the backing of AT&T, and the campaign is aimed at generating buzz about U-verse.  While it’s unclear whether the campaign will extend beyond Norwalk, the man “Bobby Choice” received a year’s free subscription to U-verse as part of the campaign, and is now holding a fictional contest to award five other residents the same prize.

Part of the reason that IPTV providers are using these innovative tactics is the uphill battle they are waging against incumbent cable providers.  Digital cable quality is excellent, and subscribers are happy with their service.

One way that IPTV can start to compete is offering bundles of converged services, which include IPTV as well as voice, data, and mobile services.  When bundled at a very competitive price, consumers are more willing to try new services in order to save money and simplify their billing.

But in order to survive and retain new subscribers, these bundled services need to be solid - i.e. provide a quality customer experience.  And, they all need to deliver at the quality level of existing services.  The IPTV service needs to be at the same quality as existing digital cable, or customers will leave, often taking all of their service dollars with them. 

Converged service assurance is now essential to competing for triple play and quad play dollars in an increasingly disruptive market.  When all of the elements of a successful converged service offering deliver a quality user experience, customers are happy and continue to subscribe month after month.

Author: Author name | posted@ Wednesday, September 05, 2007 10:36 AM

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