A new report from iSuppli suggests that the market for IPTV video services will rise to $26.3 billion in 2011, up from $779.2 million in 2006.
It adds that telcos view IPTV as an opportunity to recapture the revenue generated by many of the internet-based services that have bypassed them by travelling through their broadband pipes.
However, IPTV will deliver significantly more than just video services, offering access to digital music, on-demand gaming, data services, home security and other items. These value-added offerings will boost global IPTV video revenue streams by more than $1 billion by 2010.
While this represents huge growth, IPTV will still have significant room for expansion in the years following 2011.
Frank Dickson, principal analyst with iSuppli, said: “Subscriber and revenue growth in the IPTV market will be awesome. However, to put things into perspective, Comcast had 2006 pro-forma cable revenue of more than $26 billion. It is very likely that the entire worldwide IPTV industry in 2011 will not be as large as Comcast alone is.”
Advertising promises to be another significant revenue source to augment IPTV video. iSuppli believes IPTV operators have an opportunity to deliver unique value to advertisers through behavioural targeting and interactivity. This will drive IPTV-based advertising revenue to surpass $1 billion annually in 2010.
In 2011, China will lead the world in IPTV subscribers. The massive size of the population, combined with the government’s technology emphasis for the 2008 Olympics, are the principal reasons for the growth. Revenue, however, will be driven by the United States. North America will account for more than $10 billion in IPTV subscription revenue by 2011.
A recent report from Strategy Analytics forecast that sales of IPTV set-top boxes worldwide would rise by more than 110% to 7.9 million units this year (see Worldwide IPTV Set-Top Box Sales To Rise).
Parks Associates, meanwhile, forecast that by the end of 2011 the number of IPTV subscribers will reach nearly 60 million worldwide (see 60 Million IPTV Subscribers Worldwide By 2011).
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