Internet protocol television (IPTV) is increasing its presence in Europe, with the technology forecast to enjoy significant growth rates over the next five years, resulting in it having a significant impact on most European Pay TV markets.
According to new research from Screen Digest, in the first six months of 2005 the number of subscribers to European IPTV services increased by 66%, with France expected to be the leading market with 2.4 million subscribers by 2009.
By 2009, the report predicts that the total number of subscribers in Europe will rise from the current figure of 658,000 to 8.7 million, accounting for 0.9% of the European Pay TV market. In Italy that figure is expected to reach 20%, followed by 17% in France and 16% in Spain.
Commenting on the findings, Daniel Schmitt, author of the report said: “Although some technical and content issues have yet to be resolved, the combination of compelling, competitively priced triple-play offers that include true video-on-demand will prove a winning formula.”
He added: “Many traditional pay television providers are finding that they too must adopt IPTV technologies in order to remain competitive.”
This opinion is echoed in research from LoveLace Consulting and informitiv, with the report predicting the next five years to be critical for the IPTV market as the technology becomes firmly established as an alternative platform to digital satellite, terrestrial and cable transmission (see IPTV Moving Into Mainstream TV Marketplace).
Informa Telecoms & Media, predicts IPTV o reach 25.9 million subscribers globally by the end of 2010, up from just 2.7 million at the end of 2005 (see Popularity Of E-Shopping Continues To Grow).
The report, IPTV: A Global Analysis, claims that China will be the leading IPTV market, with 4.9 million subscribers by the end of 2010. The US is forecast to be in second place, with 3.4 million, while Hong Kong, the leading country in 2004 with 475,000 subscribers, will drop to eighth position by 2010, having been overtaken by the UK with 1.5 million.
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