Telecom Italia: Cubovision is flop

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Telecom Italia: Cubovision is flop
From Branislav Pekic in Rome



The Board of Telecom Italia has cancelled the supply agreement with Telecom Italia Media, putting a question mark on the future of the IPTV service and, especially, the Cubovision business model.



Under the terms of the 2007 agreement, Telecom Italia was responsible for “the conception, designing of schedules, research and purchase of Media Content” for use on different online TV platforms. The operator said it would now move from a traditional broadband TV to an on-demand content platform.



Cubovision has a troubled history, with Telecom Italia trying to revive the fortunes of the IPTV service several times by investing significant funds, proposing a new hardware platform, and by signing multimedia content agreements.



The change of strategy is not only due to the lack of interest in IPTV in general or the lack of an adequate fibre network infrastructure nationwide, more important is fierce competition from Mediaset and Sky, with their respective pay-TV platforms (DTT and DTH), has virtually monopolized the market.
 
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