'People in Germany are just starting to get used to the idea of paying for premium services as small charges are currently being introduced for satellite TV,' says Richardson. 'If Deutsche Telecom can introduce some exciting new services, people are going to be more willing to consider it, as they are no longer comparing IPTV services with a free offering.'

She adds: 'German consumers are price-sensitive, which presents challenges for pay TV services. However, a key benefit of IPTV is the ability to be interactive. This makes it possible for telecoms carriers to make additional money through interactive services. For example, if Deutsche Telecom secures football rights, it can introduce additional services, such as sports betting, and make money this way, even if it gives football away, at very low cost.'