Internet Pro-tocol (IP) TV and high-definition (HD) TV and their potential impact on the satellite industry and telecommunications world as a whole were among the hot topics at the International Broadcasting Convention (IBC) in Amsterdam. Satellite News caught up with Intelsat CEO David McGlade, who shared his views on what effect these trends and others are having on the world largest Fixed Satellite Services company.

Satellite News: What do you see as the main trends coming out of IBC 2006?

McGlade: Hot topics were high-definition, IPTV, and other distribution platforms. Convergence is getting more pervasive, further blurring the domain of traditional media and telecoms companies, as is IP.

Satellite News: Where do you think IPTV will have the greatest impact?

McGlade: IPTV gives telcos renewed vitality and the ability to stay in the game. Video is a required application, and mobile video will be a basic requirement sooner than we know. IPTV will have most impact where there isn’t much cross ownership between cable and telco providers. … So-called ‘telco IPTV’ is really just the first stage of a larger trend. There is clearly a good market for companies such as Broadstream that help telephone companies meet consumer demand for competitive entertainment packages.

Satellite News: Are you noticing any changes in the conversations you are having with customers?

McGlade: We find that customers are experiencing that certain markets are beginning to tighten and are interested in locking in access to certain capacity to ensure their growth plans can be implemented. We are also talking to different kinds of customers than we have in the past — a clear reflection that distribution paths for programming is changing rapidly. We have companies that were never on our radar now contacting us to ask if we can help them develop solutions for specific opportunities.

Satellite News: What has been the most significant event in digital TV in the last 12 months?

McGlade: The penetration of digital video recorders — Tivo and Tivo-like devices — and what it implies for the future. Over the coming months the line between PCs and TVs will further blur. Firms that deliver programming on a time shifted basis in an IPTV or VoD (video-on-demand) format will offer consumers more and more video viewing options, further personalizing the viewing of content.

Satellite News: What has been the biggest surprise?

McGlade: The unrelenting, multidimensional growth of video. Video is growing in two distinct, separate dimensions: the number of video channels and the number of formats.

In terms of the number of channels, the pure growth of content continues unabated. For example, we already carry well over 100 foreign language, ethnic channels for delivery in the U.S. by customers such as Globecast. They are adding more channels on almost a weekly basis. Nearly every subscriber-based content owner with whom we work is studying time phasing strategies to deliver multiple streams of content in different time zones.

The second dimension of video growth is the number of formats: SD (standard definition), HD, mobile and other variations. Slingbox is proving that people want certain content delivered to PCs.

Satellite News: Will cable players have to ultimately adopt the quad-play strategy to counter the threat of telcos?

McGlade: I believe so. It also may result in a whole new round of strategic transactions to align players that can put together a quadruple play in a manner that is most efficient and which offers the best package to the consumer. Over the long run an offering has to make sense. From the customer’s standpoint, they are looking for utility and value, and I believe the consumer market has a tier that is willing to pay for leading edge services and platform flexibility. On the other hand, it is essential that the quad play be delivered in an efficient manner on platforms that are flexible and scalable.

Satellite News: What do you think will be the most significant developments over the next 12 months?

McGlade: By next year’s show I think the market will have clear examples of where IPTV has gained measurable traction in the marketplace. I believe we will also see service providers experimenting with more and more personalized content and interactivity. The diversity of content is a growing and significant trend that will affect our business. I would also expect that next year we will spend more time discussing non-linear programming. The growing trend will be taking any piece of programming and delivering it anywhere, in any format–while meeting all of the copyright and security requirements. IP formatting is required to make that happen.

–Mark Holmes Contact, Dianne VanBeber, Intelsat, e-mail, [email protected]