07 October 2008

Global IPTV Set For Massive Growth This Year

Worldwide Internet Protocol Television (IPTV) IPTV subscriptions are forecast to grow 64% in 2008, with global IPTV service revenue reaching $19 billion by 2012, according to a report.

IPTV is defined as the use of a carrier-based managed IP broadband network to deliver television and video content services to the end-user's TV set using a set-top box, and delivering picture quality at least equivalent to existing pay-TV or free-to-air services.

Global subscriptions to IPTV services are on track to hit 19.6 million subscribers by the end of this year, a 64.1 per cent increase from 12 million subscribers in 2007, according to a report by market research company Gartner, Inc. Worldwide IPTV revenue is projected to total $4.5 billion in 2008, a 93.5 per cent increase from 2007 revenue of $2.3 billion.

In 2008, 1.1 per cent of households worldwide will be subscribers of IPTV. By the end of 2012, Gartner forecasts worldwide household penetration of IPTV will be 2.8 per cent, while worldwide IPTV revenue is expected to total $19 billion in 2012.

“The biggest change since 2007 is the rapid advent of new entrants making inroads in consumer video consumption and placing greater demands on IPTV operators to innovate,” said Gartner research director Elroy Jopling. “The video consumption field will become increasingly crowded.”

Western Europe is the region with the largest number of IPTV subscribers. Western Europe is on pace to hit 8.2 million subscribers in 2008, and will grow to 18.8 million subscribers in 2012, according to Gartner. North America is the largest market for IPTV revenue. Garner believes IPTV revenues in North America will reach $2 billion by the close of 2008, and grow to $8 billion in 2012.

“Before 2008, the IPTV operators' emphasis had been to spread their footprint and effectively provide a “me too” solution to cable and satellite,” added Jopling. “In the future, especially in the developed markets, we will see an emphasis on innovation and differentiated pay-TV services.”