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08.08.2006
Originally featured on BroadcastEngineering.com
IPTV subscriber base set for explosive growth, says iSuppli

Source: iSuppi August 2006

Global IPTV subscribers will grow to slightly more than 63 million in 2010, rising at a stunning Compound Annual Growth Rate (CAGR) of 92.1 percent from 2.4 million in 2005 according to market research firm iSuppli.

The IPTV subscriber base will generate more than $27 billion in overall IPTV services revenue in 2010. While video services will account for the largest portion of these dollars, value-added media services and IPTV operator advertising will combine to represent more than 14 percent of IPTV services revenue in 2010. Furthermore, across all IPTV services, the corresponding content licensing revenue will reach $11 billion in 2010.

iSuppli categorizes market deployment of IPTV services in three phases. The current global IPTV market is early in its first phase: basic service deployment. The second phase will add an array of value-added and interactive services. Phase three will bring improvements in integration and interactivity.

Thus, in this pending battle for subscribers, providing a competitive video offering is merely the cost of entry for IPTV operators, says iSuppli. Differentiation of IPTV services will be essential to bringing new capabilities to TV-based entertainment and attracting subscribers. Areas of differentiation will include:

  • Interactivity, such as communication, community, voting, interactive advertising and television commerce (t-commerce).
  • Integration across multiple platforms, across voice and data services and across content types, i.e. video, voice, music, gaming, data services and user content.
  • Personalization, including intelligent TV recommendations, individualized advertising and non-linear video programming, such as Video on Demand (VoD) and Digital Video Recording (DVR).
  • Value-added services, including on-demand gaming, music, media applications, home networking management, security and data.

For more information, visit www.isuppli.com.



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