The number of IPTV subscribers will reach nearly 60 million worldwide by year-end 2011, spurred by both aggressive and reactionary telco tactics, according to a new report from Parks Associates.
The report,
IPTV: From Quadruple Play to Multiplay, which provides forecasts and analyses for the worldwide IPTV market, predicts television choices for European consumers in particular will expand greatly in the next several years, due to a growing number of IPTV providers per country, a surge in digital terrestrial offerings, and a resurgence of cable providers in certain markets.
Kurt Scherf, Parks Associates’ vice president and principal analyst, said: “On a global scale, the IPTV experience is going to provide varying levels of success and challenges. Market forces are pushing European incumbents into nontraditional areas, inspiring growth in multichannel television delivery, greater reliance on residential gateways, and the beginnings of truly converged communications services.
“In Asia, the markets have, in many cases, the necessary infrastructure to support incredible television experiences, but providers will struggle to truly differentiate their offerings from cable competitors. Finally, the North American model for telcos is going to have to shift from a defensive to an offensive posture for Tier 1 providers to establish a foothold and actually build revenue.”
According to IPTV: From Quadruple Play to Multiplay, features such as fixed-mobile convergence, home networking, end-to-end service management, new advertising models, and interactive applications will be key ingredients for telcos to succeed against incumbents.
Scherf added: “Cable and satellite providers won’t stand still while telcos to take their subscribers. Already we are seeing aggressive bundling strategies in the US and a renewed emphasis on hybrid television services in Europe. The IP nature of telco offerings lends itself to some key differentiation. Telcos should explore these possibilities more aggressively.”
Recent research from Screen Digest said that subscriptions to IPTV services across Europe will almost double from 2.9 million in 2006 to 5.6 million in 2007 (see European IPTV Market To Double).
Meanwhile, JupiterResearch forecast that 70% of US homes – some 86 million households – will have broadband internet access by 2012 (see 70% Of US Homes To Have Broadband By 2012).
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