A new study from Berlin-based consulting firm Gold Media on IPTV in the markets of Germany, Austria and Swtizerland has found that much of the economic viability of an IPTV service depends on growth of the market, adding that TV revenue alone does not make IPTV a commercially attractive business model.

Even for large network operators, IPTV is often only worthwhile due to the overall effects of customer retention and customer growth, according to the study, which adds that the critical success factor for an IPTV service is a high degree of quality.  Early technical problems are described as easily having a negative effect and further increasing customer churn.

The consulting firm estimates that the construction and operation of an IPTV platform is only economically viable for an independent telecoms company with a critical mass of 2.5mn broadband customers.