Project Canvas forecast to reach 3.5m homes by 2014

Analyst Screen Digest said that Project Canvas – the proposed IPTV service from the BBC, ITV and BT – will offer an alternative, neutrally-branded distribution platform offering linear TV channels, video on demand and web-based applications.

“Ultimately, it will rival IPTV, cable and satellite and will be separate from the existing Freeview, Freesat and BT Vision offerings,” it added.

Dan Cryan, senior analyst at Screen Digest, said: “The BBC’s track record of building markets with Freeview and the iPlayer has been a well-documented success. There is every reason to think that if a Canvas-type proposition is approved, with the full promotional impetus of the BBC behind it, it will reach at least 3.5m homes by 2014.

Such a platform is both a threat and an opportunity to pay-TV operators. On the one hand giving them wider distribution potential for their content bouquets, and on the other hand giving content owners a potential route to bypass the operators and go direct to the consumer.”

However, Screen Digest points out some obstacles the project will have to overcome, including expensive set-top boxes and timing issues as it may launch in the same period as Freeview HD.

Last month, research from Point Topic found that global IPTV growth remained strong in the second quarter of 2009 at 11%, reaching 26.9 million subscribers.

Europe continues to lead the IPTV success story, the research firm said, with 13.6 million subscribers, a 51% year on year increase.

At the start of the year, In-Stat reported that despite the worldwide economic crisis, IPTV would continue to perform strongly – a prediction apparently borne out by the Point Topic figures.