Uncommon Wisdom

Sep 21 2007   7:43PM GMT

Alcatel-Lucent invests in IPTV

Tom Nolle Tom Nolle Profile: Tom Nolle

September 21 2007: Alcatel-Lucent is acquiring a small IPTV company that focuses in interactivity and advertising links with IPTV. The deal, in our view, reflects a number of important points. First, it shows that Alcatel-Lucent will be pushing its IPTV strategy to cover the revenue shortfall from mobile that it says was the cause of its recent quarter disappointment. Second, it shows that the forces of YouTube have, as we’ve suggested, changed the industry dynamic away from pay-for-view to sponsored viewing. The need to integrate better-targeted advertising is thus key to IPTV success, and to the success of Alcatel-Lucent.

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Alcatel-Lucent news release

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