IPTV will kill the video store

Broadband television services are set to kill off the video rental store by next year, according to amenities comparison site uSwitch.com .

BT Vision is the main IPTV (Internet Protocol Television) service to launch so far in the UK.

"The benefits to consumers are clear. IPTV offers exceptional viewing choice and great value for money," said Steve Weller, head of communications services at uSwitch.com. Over broadband, customers can choose from a host of on-demand content. BT also offers a play-as-you-go service with no subscription fee. "There are clear cost savings to be made over the traditional high street video stores and we wouldn't be surprised if these cease to exist by the end of next year," continued Weller.

uSwitch believes that as demand for IPTV picks up, providers will 'clash' with each other, all trying to make the most money possible from the new broadcast platform.

Make the most of it

It's a view shared by industry analyst Deloitte . It believes that if telecommunication companies don't act now to exploit the demand for IPTV, they risk bearing the brunt of carrying increased data rates without reaping the financial benefits.

It says by co-developing interactive services and taking advantage of advertising, telecommunication companies can help drive IPTV's popularity and their revenue.