With products like IPTV and smartphone/tablet TV Zattoo breaks new grounds for small and medium-sized network operators to develop new groups of customers and revenue sources. Without having to invest in respective technologies themselves they can keep up with large industry players.
When implementing B2B white label solutions Zattoo profits from more than 10 years of experience it has with its own Internet TV offering for end consumers, as Gernot Jaeger, Chief Officer B2B TV Solutions, explains to ANGA COM Daily. ”Back then we were the first and today we are the largest Over-the-Top-TV provider (OTT) in Europe.” Up to two million unique users are watching TV via the Zattoo platform every month.
Zattoo is operating in the B2B business for 4 years now. The focus is on a completely hosted and managed service for network operators. “We own the TV platform and have the experience with operating and continuously developing IP-based TV products,” says Jaeger. “The network operators are contributing the second important part for a stable TV service, which is the managed network.” Consequently, the TV service for network operators is not run as OTT-TV, emphasizes Jaeger, but as IPTV with full Quality of Service (QoS) instead.
Zattoo started the B2B business with a product to support cable operators in offering TV for second screens under their own brand to customers. Two years ago Zattoo introduced a comprehensive solution which includes IPTV for the main “living room TV” addressed via a set-top-box. Zattoo is running this IPTV service successfully for customers including Telecom Liechtenstein or SAK St. Gallen.
Since then a dozen network operators in five European countries have decided in favour of a B2B solution from Zattoo. “The B2B business is a strategic focus for Zattoo and we believe in significant growth potential,” stresses Jaeger. As a service provider in the background Zattoo takes responsibility for the entire technical operation (signal-ingest, encoding, product logic, applications, signal distribution), but at the same time remains invisible for the end customer. From a customer’s perspective the TV service is provided by his network operator. Customer relationship and invoicing always remain the responsibility of the network operator.
With the frame contract recently closed with the Deutsche Netzmarketing GmbH (DNMG) Zattoo wants to address small and medium-sized network operators: On the one hand, cable operators looking to complement their DVB-C offering with a second-screen solution for TV consumption. On the other hand, city carriers and public utilities looking for opportunities to offer TV (IPTV) next to internet and telephony services on their fibre networks.
Based on the experience of Zattoo, both models bear great potential for network operators, explains Jaeger. Cable operators can offer second screen-functions for a monthly premium or add them to product bundles of higher value to the customer. According to Jaeger, city carriers and public utilities unlock new revenue potential when offering IPTV in addition to internet and telephony services. They strengthen customer retention and can compete with other triple play providers at eye-level.