IPTV To Take Off In 2007

USwitch.com says that internet protocol television (IPTV) is changing the way consumers watch television, with the average UK broadband user already spending 30 minutes a week downloading films and a further 23 minutes a week watching TV online.

However, it adds that the major communications providers will be bringing IPTV into the mainstream in the coming months, with the launch of Virgin Central and the imminent launch of Sky’s Anytime product.

According to uSwitch, over 100 million households in the world already have access to IPTV and there are now over 1,300 IPTV channels online offering free content downloads, with millions more expected to become IPTV converts as broadband connection speeds increase.

Steve Weller, head of communications at uSwitch.com, said: “The UK is now in the midst of a full scale roll out of IPTV. Sky has traditionally dominated this arena, broadcasting a vast array of viewing content, but this is going to be aggressively challenged with the influx of new providers set to launch rival services that will provide compelling content ‘on-demand’ this year.

“The benefits to consumers are clear. IPTV offers exceptional viewing choice and great value for money. With films starting at 99p there are clear cost savings to be made over the traditional high street video stores, and we wouldn’t be surprised if thee cease to exist by the end of next year.

But IPTV is not only a good news story for customers – its an extremely powerful cash cow for providers, which is why we are seeing more of them enter this market. Broadband on its own generates little profit, but content provides an additional revenue stream.”

Weller added: “IPTV is here to stay, and our prediction is that movie studios and independent TV producers will start to make their programmes directly available to consumers rather than via domestic IPTV providers. Certainly we’ll see more content become available as the TV producers start to convert their old programmes into digital format.

“As IPTV take-up grows and TVs develop built-in broadband modems, consumers will start to watch more IPTV without even knowing it. Users of the service will be given a menu of programmes to watch, click, buy and then view. It’s still TV but not as you know it.

A recent report from Strategy Analytics forecast that the number of IPTV households will grow from 5.8 million homes globally in 2006 to over 80 million in 2011 (see IPTV Households To Grow To Over 80 Million).

Meanwhile, a recent report from DGA said that viewers aged 55+ tend to watch high volumes of television and are less likely than younger viewers to be affected by new media innovations such as IPTV (see UK Digital Platforms Set For ‘Grey Boom’).