The European market for IPTV will double in 2007, according to the latest figures from media analysts Screen Digest.
The research examines the 54 IPTV services across Europe, 19 of which are in operation in the five European markets of the UK, France, Italy, Germany, and Spain.
IPTV is the fastest growing pay-TV platform by far, outstripping all other platforms combined, says Screen Digest.
It forecasts that subscriptions to IPTV services across Europe will almost double from 2.9 million in 2006 to 5.6 million in 2007, with subscription revenues from IPTV increasing from £470 million to over £1 billion. Almost 1 million of those new customers will be in France.
The top five IPTV operators in Europe – Orange, Telefónica, Free Telecom, Neuf Telecom and Fastweb – accounted for 60% of the total IPTV market in the five countries at the end of 2006.
Screen Digest expects that these operators will remain in their respective positions throughout 2007, with Neuf Telecom and Free Telecom vying for second place in France.
One key factor contributing to the strong growth in IPTV is that services are being offered by well known household names, giving consumers the confidence to subscribe. Orange, BT, Telefonica, Deutsche Telecom and Telecom Italia were already very established brand names in their markets, giving them a significant advantage when promoting the service.
Digital terrestrial TV (DTT) is one of the main driving forces of IPTV uptake in France, Spain and the UK, with ten IPTV services using hybrid DTT/IPTV boxes in the three markets. Such services are popular because they allow customers to access the DTT channels for free, and give them the option to take pay-TV and Video on Demand (VoD), says the media analyst.
The UK will experience the biggest growth in 2007, with Screen Digest forecasting that subscriber numbers will grow from 80,000 to 300,000 by the end of this year.
This 250% increase will be fuelled by the recent launch from incumbent BT as well as national launches from rivals Tiscali and France Telecom in the autumn.
Recent research from uSwitch.com said that 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 (see IPTV To Take Off In 2007).
Meanwhile, Frost & Sullivan revealed that the global set top box market has been experiencing significant growth, due in most part to IPTV (see IPTV Boosts Set Top Box Market).
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