So while I worked at SES AMERICOM, getting their IPTV service off the ground was one of the projects I was particularly proud of. A completely new service, it is technically sound and backed-up by some of the finest people in the video distribution business. We branded it IP-PRIME® and sold it to telcos who needed video services to compete with cable, who was going after their customers with voice and data services.
After three years of, in my opinion, decent marketing efforts, it seemed it was picking up steam and rolling on down the line. Only last week, Telephony wrote about the company’s positive outlook:
SES Americom’s content aggregation business continues to thrive in the face of an economic downturn, buoyed by demand for high-definition television and long-term relationships with programmers, chief financial officer Robert Kisilywicz told attendees at UBS’s annual global media and communications conference held this week in New York City.
The wholesale distributor, which announced at TelcoTV that it had signed up 65 total telcos in 31 states to its IP Prime platform, will launch 13 new satellite programs in the next three years, adding more than 28% growth in its transponder business. Kisilywicz said it has no liquidity concerns and will remain fully funded through 2010. Also helping the financial outlook is the fact that SES customers typically sign 10- to 15-year non-cancelable contracts, giving the company long-term visibility.
“When a customer makes a buying decision, it’s typically a long-term relationship,” Kisilywicz said. “As that platform grows, as they add subscribers and, in turn, more channels, customers want to sign on with operators who have the capacity to grow with them…They don’t want to be turned away when they reach growth capacity or be told to repoint their network. That puts SES in quite a good position as some of our competitors are withdrawing their fleets in the market.”
When I read that, I thought “great,” the service will succeed and I’ll be proud. This morning, however, I’m inclined to say I saw that train coming. SES says it’s time to change tracks:
SES AMERICOM today announced that it will cease providing its IPTV service in North America – IP-PRIME – by July 31, 2009. The termination of the service is motivated by the slow adoption of IPTV by small and medium size telecom operators as well as by the difficult market outlook for this kind of service.
“In line with its plan, IP-PRIME has contracted IPTV signal delivery agreements with 70 small telecom operators, of which 37 have so far reached commercial stage. However, with a subscriber base of less than ten thousand at the end of November and after more than 2 years of service, the consumer uptake is insufficient to justify continuing operations,” said Rob Bednarek, President and CEO of SES AMERICOM-NEW SKIES.
Too bad; hope they find somebody to continue the service beyond July of 2009.
Comments ( 2 )
That's embarrassing, saying the service is good and then shuttering. The UBS conference (http://www.ubs.com/1/e/media_overview/media_americas/releases.html?newsId=158928) had some heavy hitters... WHAT: UBS’s 36th Annual Global Media Conference will feature presentations by senior management from more than 90 leading advertising, broadcasting, publishing, multi-channel television distribution, entertainment, telecommunication, video gaming and new media companies from around the globe. The preliminary list of presenting companies includes: A H Belo AT&T Belo Corp. British Sky Broadcasting Group PLC Cablevision Careerbuilder.com CBS Corporation CBS Vision CBS Interactive Central European Media Enterprises CenturyTel, Inc. Comcast Corporation Cumulus Media Digital Realty Trust Discovery Communications Dupont Fabros Technology E. W. Scripps Company Electronic Arts Embarq Corporation Entravision Communications France Telecom Frontier Communications Gannett Co., Inc. Grupo Televisa Hulu Hughes ICO Global Communications IHS iMAX IMG Inmarsat Interpublic Group of Companies Interpublic Group of Companies (McCann) JCDecaux UK John Wiley Leap Wireless Liberty Global, Inc. Liberty Media Corporation Lionsgate LodgeNet Interactive Corporation Martha Stewart Living Omnimedia McClatchy Company MDC Partners Media General, Inc. Meredith Corporation MobiTV Move Networks MSCI Inc, USA NBC Universal New York Times Company News Corporation Nexstar Broadcasting Group Inc NextWave Wireless Inc Nielsen NTELOS Holdings Corp. O3B Networks ORBCOMM Inc. Pando Playboy Enterprises, Inc. Qwest RCN Rentrak Rogers Communications Inc. Savvis Scripps Networks Interactive Shanda SES Sinclair Broadcast Group Inc Sprint Nextel Corporation SureWest Communications Take-Two Interactive Software, Inc. TelX Terremark Thumbplay Time Warner Time Warner Cable TRA Ubisoft Unitymedia Viacom Virgin Media Visible World Walt Disney Company Washington Post Company Westwood One Windstream Communications World Wrestling Entertainment, Inc. WPP Group Yahoo! YES Network ZenithOptimedia WHY: Media and communications companies hold a unique role in society and the economy, whether as a means of entertainment or as a tool to build consumer brands. Innovation and evolution in the sector have blurred the traditional boundaries between media and communications, leading to increased industry consolidation. As consumers change the way they get news, watch television or communicate with friends and family, this year’s conference will provide investors and media with essential information on trends in this critical sector. Aryeh Bourkoff, Vice Chairman of Technology, Media & Telecom banking at UBS said, “The companies scheduled to present at the UBS Global Media and Communications Conference will be discussing how their businesses are performing in this turbulent economic period. The advertising forecast for 2009, which will be released at the conference, will surely be closely monitored." The 36th Annual UBS Media Week Conference is a “must attend” event for media investors around the world.