Beginning IPTV Subscribers Set for Explosive Growth August 7, 2006 - The worldwide subscriber base for Internet Protocol Television (IPTV) services is anticipated to expand by rapidly by 2010, goading a competitive battle between video providers both old and new, according to iSuppli.
The report predicts that global IPTV subscribers will grow to just over 63 million in 2010, with a staggering Compound Annual Growth Rate (CAGR) of 92.1 percent from 2.4 million in 2005. The IPTV subscriber base will generate more than $27 billion in overall IPTV services revenue in 2010. While video services will account for the largest portion of these dollars, value-added media services and IPTV operator advertising will combine to represent more than 14 percent of IPTV services revenue in 2010. Furthermore, across all IPTV services, the corresponding content licensing revenue will reach $11 billion in 2010. iSuppli categorizes market deployment of IPTV services in three phases. The global IPTV market is currently in the first phase, which is basic service deployment. The second phase will see an array of value-added and interactive services being added. Phase three will bring dramatic integration and interactivity improvements. Thus, in this anticipated battle for subscribers, providing a competitive video offering is merely the cost of entry for IPTV operators. Differentiation of IPTV services will be essential in bringing new capabilities to TV-based entertainment and attracting subscribers. The areas of differentiation will include: - Interactivity, such as communication, community, voting, interactive advertising and television commerce (t-commerce).
- Integration across multiple platforms, across voice and data services and across content types, i.e. video, voice, music, gaming, data services and user content.
- Personalization, including intelligent TV recommendations, individualized advertising and non-linear video programming, such as Video on Demand (VoD) and Digital Video Recording (DVR).
- Value-added services, including on-demand gaming, music, media applications, home networking management, security and data.
Beyond the video service providers themselves, a range of companies will benefit from the new opportunities arising from their roles as the “arms suppliers” for the battle over the next generation of television distribution. iSuppli predicts that these companies will include infrastructure gear manufacturers, set-top box makers, software vendors and semiconductor suppliers. Geographically, Europe has taken the early lead in the global IPTV market, both for subscribers and revenue. However, Asia will generate faster growth than other regions and will achieve the largest subscriber base by the end of this year. The Americas will lead the world in terms of IPTV dollars starting this year as it will yield the highest Average Revenue Per User (ARPU). Mark Kirstein, vice president, multimedia content and services for iSuppli stated: “The fight to capture the expanding base of IPTV subscribers will put telecom operators on a collision course with existing pay-TV market competitors and with a new class of broadband video portals as they roll-out progressively more sophisticated offerings.” For a detailed look at the global IPTV market, read iSuppli’s latest Home Entertainment Multimedia Content Service report, entitled: ‘IPTV Content and Services: Bracing for the Subscriber Wars’.
http://www.iptv-asia.net/ IPTV World Forum Asia 2006 http://www.iptv-forum.com/ IPTV World Forum 2007 http://www.iptvworldseries.com/ Home of the world's leading IPTV events |
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