The worldwide subscriber base for internet protocol television (IPTV) services is expected to expand by a factor of more than 26 from 2005 to 2010, spurring a competitive battle between video providers both old and new, according to a new report from iSuppli Corp.
Global IPTV subscribers will grow to slightly more than 63 million in 2010, rising at a compound annual growth rate (CAGR) of 92.1% from 2.4 million in 2005.
In addition, iSuppli says that 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% of IPTV services revenue in 2010. Furthermore, across all IPTV services, the corresponding content licensing revenue will reach $11 billion in 2010.
Recent research from In-Stat forecast that IPTV will reach 34 million subscribers in Asia/Pacific by 2011 (see IPTV To Reach 34 million Subscribers In Asia/Pacific By 2011).
However, The Diffusion Group’s (TDG) report, IPTV 2006 – The Future of IP Media, forecast that there would be 34 million subscribers globally by 2010 (see Global IPTV Households To Near 34 Million By 2010).
iSupply also said that on a geographic basis, the European market has taken the early lead in the global IPTV market, both for subscribers and for revenue. However, Asia will generate faster growth than the other regions and will achieve the largest subscriber base by the end of this year. The Americas region will lead the world in terms of IPTV dollars starting this year because it will yield the highest Average Revenue Per User (ARPU).
Mark Kirstein, vice president, multimedia content and services for iSuppli, said: “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.
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