Steady growth for IPTV predicted

IPTV (Internet Protocol Television) is predicted to grow steadily through the end of this decade, a new study finds. The technology is expected to attract 63 million subscribers by 2010 — more than a 26-fold increase over last year.

The data comes in a new study released last week by research firm iSuppli of El Segundo, California.

The IPTV subscriber base will generate more than $27 billion in overall IPTV services revenue in 2010, the study predicts. 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, the research predicts.

“The fight to capture the expanding base of IPTV subscribers will put telecom operators on a collision course with existing pay-TV market competitors and with a new class of broadband video portals as they roll out progressively more sophisticated offerings,” said Mark Kirstein, vice president, multimedia content and services for iSuppli.

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 dramatic improvements in integration and interactivity.