Originally posted by MTB-Markie:
How do you pay for content in those countries?
It's mostly subscription based, using models like Netflix for movies, and deals with your cable and satellite company for On-demand.
The Netflix example is a good one because the IPTV quality is high def, which you can't get from a current DVD. It's cheaper to operate on the business side, and at 20 Mbps, you can get higher quality video over the Fiber then you can get from the DVD that gets delivered to your door.
The only live TV over IP that is making any money in Korea is from the gaming industry. They watch people play computer and video games like old men spend sundays watching golf - except they watch there broadcasts over the fiber and 7 dasy a week. The rest are currently losing money, as one would expect in the first few years as it starts to take off. However, the on-demand over IP is taking off. Think of it as personal TiVo over the fiber, with no space limitations. These are also subscription based at about $25 a month, set to mirror your cable/satellite plan (in terms of channels offered).
I haven't seen the individual show model (that seems to be taking off here in the states) overseas. It's a lousy idea modeling the iTunes music model, but here's the difference: nobody wants to keep these TV shows forever, so why the 99 cent per episode price tag? It's completely different from music. The subscription fee is the way to go here, but alas, nobody is talking about it.