Central and Eastern Europe to see IPTV subs increase 100% in 2008, says study

November 19, 2008 - Service providers in Central and Eastern Europe (CEE) are seeing their IPTV services experience growing popularity, according a recent study by market intelligence firm IDC, which bodes well for the region's telecoms industry as it seeks to diversify its businesses.

The new study projects that, despite limited uptake of IPTV in previous years, total IPTV subscriber connections in CEE will grow by more than 100% in 2008, up from approximately 290,000 connections in 2007.

"While demand for basic broadband Internet connectivity services remains strong, operators cannot expect to maintain some of the high double-digit or even triple-digit broadband growth rates experienced in the past," said Joshua Budd, Program Manager, Telecommunications at IDC Central and Eastern Europe, the Middle East and Africa. "Operators must diversify their services portfolios. Offering value-added services over broadband Internet, such as IPTV, is a natural move that can pay off — if implemented under the right conditions."

This year is described as having been an important turning point for the industry in markets such as the Czech Republic and Croatia, with both countries crossing the 100k subscribers milestone in 2008, however other markets are moving more slowly, due to stiff competition from existing pay-TV providers.

"Despite higher demand for IPTV in the region, competitive challenges will make the launch of IPTV an uphill battle in some country markets," adds Mr Budd. "In Romania and Bulgaria, for example, there is relatively high cable TV penetration. Competition from existing pay TV providers in these and other countries with high cable penetration will leave new IPTV entrants with little room to manoeuver."