They just don't get it, we don't want to subscribe to a hundred channels. What we do want is watch what we want when we want and not have to subscribe to half a dozen services on top of our ISP fees.
If the telecoms want to make real money out of IPTV they need to stop subscribing to rights to channels and instead buy up their own material and repackage it for their own subscribers, else all they are doing is relaying terrestrial TV to an audience that can already get on .. er ... Television. I mean, for me, why pay extra to watch television on the Internet ?
If may come as a surprise to the telecoms that IPTV is a bandwidth hog, but not the rest of us. What they need to do is provide a high definition broadcast grid for live video, the rest to be provided in a peering arraignment to the local ISP switching center. The consumer then selects from a list of older tv progs and movies and they are delivered overnight to a DVR or set-top-box.
You pay for what you watch when you watch. Latest movie, ok top dollar, old movie, $1:00 a time. You also pay for online game subscriptions, video telephone, research and reference like the Wolfram|Alpha project.
Of course even 'passive viewing' is old century for the current wired generation, they're more into making and being in their own personal movie :) It depresses me as to all the innovators can see as to the future of the Internet, television and adverts. Back to the sixties I guess