Cloud TV: A Techno-Economic Approach in the Emerging Era of the Internet of Things

Georgia Dede, Georgios Loupatatzis, Dimitris Grigoropoulos, Georgios Chatzithanasis, Thomas Kamalakis and Christos Michalakelis
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Georgia Dede: Harokopio University of Athens, Greece
Georgios Loupatatzis: Harokopio University of Athens, Greece
Dimitris Grigoropoulos: Harokopio University of Athens, Greece
Georgios Chatzithanasis: Harokopio University of Athens, Greece
Thomas Kamalakis: Harokopio University of Athens, Greece
Christos Michalakelis: Harokopio University of Athens, Greece

International Journal of Corporate Finance and Accounting (IJCFA), 2020, vol. 7, issue 1, 39-53

Abstract: Cloud TV is a cloud-based live television streaming program or app, allowing the user to watch high definition (HD) TV channels without the requirement of a TV box or aerial but only a stable internet connection. As the number of Cloud TV channels continuously increases, so does the need for a techno-economic evaluation and analysis, which constitutes the aim of this paper. The analysis aims to provide an assessment of the required investment for a new Pay TV operator, using Cloud TV technology in the internet of things (IoT) era. The adopted methodology includes demand forecasting and cash flows calculations and important economic indicators, for a time period of 10 years and different diffusion scenarios. Evaluation of the methodology was based on statistics obtained from one of the larger telecom providers in Greece. Results indicate that investing on Cloud TV technology in Greece is feasible for the technologies of over-the-top (OTT), IPTV, and Smart TV. A sensitivity analysis is also performed, studying the case of a new entry for a Pay TV operator in the local market with emphasis on OTT services, which gains a significant percentage of customers.

Date: 2020
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