Global IPTV subscriptions are expected to jump from two million to 34 million between 2005 and 2010, reflecting a compound annual growth rate (CAGR) of 60%, according to a new report from Research and Markets.
The report
IPTV Update 2006 – The Future of IP Media forecasts that North America will experience the most rapid rate of growth during this time period with a CAGR of 78%, followed by Europe, the Middle East, and Africa (EMEA) with a CAGR of 61% and Asia/Pacific with a CAGR of 41%.
The report’s authors, Herve Utheza and Colin Dixon, IPTV deployments in several key European countries are on schedule, with new launches expected in smaller Eastern European and Nordic countries. For these reasons, the EMEA region is expected to top 14 million IPTV households by 2010 with France, the UK, Italy, Spain, and German accounting for 87% of the total.
A recent report from eMarketer said that IPTV will grow its US subscriber base from 300,000 to 8.7 million by 2010 (see US IPTV Subscribers To Reach 8.7 Million By 2010).
IPTV Update 2006 – The Future of IP Media also forecasts that North American IPTV households will near 14 million by 2010, with the US accounting for 80% of these subscriptions. While the majority of 2005 and 2006 IPTV deployments have been executed by small rural operators, TDG expects the new deployments by Verizon and AT&T to greatly increase subscribers starting in 2007.
Research and Markets says that Asian IPTV deployments are expected to account for only 5.6 million subscriptions by 2010. Utheza said: “Although Hong Kong’s PCCW continues to push IPTV deployments, and despite ongoing IPTV trials in both China and India, consensus expectations regarding the growth of the Asian IPTV market are simply not achievable.”
Utheza says that the impending launch of digital terrestrial television (DTT) in China is the primary reason for poor IPTV demand in the region. “After many years of political wrangling, the Chinese government is about to announce a single DTV standard for both fixed and mobile services. Once this happens, the government will start pushing more aggressively the distribution of digital set-top boxes as a means of ramping up the number of digital TV subscribers.”
Dixon added: “IPTV market conditions vary widely depending on the country or geography in question, entailing that individual markets will evolve and behave in very unique ways.”
He also said that a handful of individual service operators will account for 75% of the deployed volume with the remaining 25% split between hundreds of other operators. “These conditions will pose a challenge to all types of IPTV solutions vendors, one that requires detailed and flexible implementation and go-to-market strategies.”
Meanwhile, a recent report from iSuppli Corp. said that 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 (see IPTV Subscriber Base Set To Grow).
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