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IPTV To Be In 38.4m Homes Worldwide By 2012

IPTV To Be In 38.4m Homes Worldwide By 2012

Significant growth will result in 38.4 million IPTV homes by 2012 – or more than seven times as much as the figure at the end of 2006, according to a new report published by Informa Telecoms & Media.

Despite this acceleration, IPTV – A Global Analysis found that only 3.1% of the world’s TV households will subscribe to an IPTV service by 2012, as the operators battle for market share against cable, satellite and DTT.

Adam Thomas, media research manager at Informa, said: “In the shorter term we are forecasting 10.6 million IPTV households by the end of 2007, double the 2006 figure of 5.3 million.

“Much of the recent growth has come from service launches by European telcos, although US cablers are also starting to look anxiously over their shoulders at the success of U-Verse and FiOS.”

In 2006, IPTV worldwide generated revenues from subscriptions and VOD of less than US$1.5 billion. By 2012 Informa forecasts that this will reach US$14.7 billion, with US$13.6 billion coming from subscription revenues, and a further US$1.1 billion from VOD revenues.

Looking ahead, China is expected to be the leading IPTV market by subscribers, with 6.6 million homes having it as their primary TV service by end-2012. However, Hong Kong will retain its leadership in the household penetration stakes and the US will contribute the highest IPTV revenues.

Top 5 IPTV Markets in 2012 
By Subs (000) By Penetration By Revs (US$m)
China 6,623 Hong Kong 46.70% US 3,096
US 4,888 France 18.10% Japan 1,988
France 4,167 Taiwan 14.80% France 1,402
Japan 3,143 Singapore 10.50% Italy 1,078
Germany 2,559 Norway 9.60% Germany 904
Source: Informa Telecoms & Media

MRG’s recent bi-annual forecast found that Europe still leads the world IPTV market, while Asia and the “Rest-of-World” see emerging markets like China, Eastern Europe, Korea and Russia taking larger steps to growth (see Europe Still Leads World IPTV Market).

In other research, Canalys predicted that worldwide IPTV subscriber levels will increase more than tenfold by the end of the decade, growing from fewer than 4 million in 2006 to almost 40 million in 2010.

Europe, the Middle East and Asia accounted for two-thirds of global IPTV subscribers at the end of 2006, said Canalys, and will remain the largest market through to 2010, when the region will account for 38% of the worldwide total (see Worldwide IPTV Subscriber Levels To Increase More Than Tenfold).

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