Digital Home Thoughts: Microsoft, Deutsche Telekom Finalize IPTV Deal

"Deutsche Telekom announced Tuesday that it will use Microsoft's IPTV Edition software to deliver TV service over broadband to millions of consumers throughout Germany. Several carriers throughout the world have been testing Microsoft's IPTV software for more than a year, and now many of those tests are turning into commercial deployments. The Deutsche Telekom agreement is the largest contract Microsoft has signed in Europe, said Christine Heckart, general manager for marketing at Microsoft. The agreement is also the second-largest Internet Protocol television deal in the world, behind Microsoft's deal with AT&T, which is currently testing the service with a select group of residents in San Antonio, Texas. AT&T is planning a wider deployment for later this year."



I've got mixed feelings on IPTV. Though I certainly like watching shows when it's convenient for me, I have lots of questions. How will the revenue model work? Will I pay a monthly flat rate subscription fee, or pay for programs ala carte? How will they subsidize programs with advertising (as they currently do with commercials)? If there are commercials, will I be able to skip them? Will content providers (tv networks) be paid per view, or paid a flat rate fee for content? It sounds like a great idea, but I honestly think it might be too big of a leap from the current business model to sustain.