IPTV to generate revenue in three years, says survey
February 13, 2007
More than half of communications industry executives believe IPTV can generate significant revenue within the first three years of service, according to findings of a survey from Accenture and the Economist Intelligence Unit (EIU).
The survey of nearly 350 executives from telecommunications, broadcasting and media companies across 46 countries in the Americas, Europe and Asia revealed industry-wide confidence in the longer-term outlook for IPTV. The poll found 60 percent believe IPTV will generate significant revenues within three years.
However, confidence in the short-term outlook remains mixed, with 52 percent of respondents saying they are not confident in the ability of IPTV to generate significant revenues within the next 12 months. On the other hand, 20 percent said they are confident or very confident, and 28 percent said they are somewhat to fairly confident, that IPTV will generate significant revenues within 12 months.
When asked what they believed would be the principal revenue source for IPTV, about 46 percent identified advertising. However, network operators, as a subset of all respondents, disagreed. Seventy-four percent of network operators said they believe subscription fees for premium content will provide the largest recurring revenue stream, followed by basic content subscription fees and then advertising fees.
When asked to identify reasons for pursuing the IPTV market, 42 percent cited new revenue streams followed by acquiring new customers (28 percent) and increasing sale of broadband access connections (21 percent).
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