Study: Worldwide IPTV Subscribers Will Boom by 2010

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A new study fielded by analyst firm iSuppli predicted that the IPTV-subscriber base worldwide will boom from 2.4 million in 2005 to more than 63 million by 2010.

El Segundo, Calif.-based iSuppli also predicted that this rapid pace of subscriber additions, which will have an annual compound growth rate of 92%, will spur a competitive battle between established video providers and new entrants.

In addition, the IPTV-subscriber base will generate more than $27 billion in services revenue in 2010. While video services will claim the lion’s share of this revenue, there will also be income generated from added media services.

These services, along with operator advertising, will comprise 14% of IPTV-services revenue in 2010. Meanwhile, content-licensing revenue will reach the $11 billion mark by 2010.

The market also will supply lucrative grounds for gear suppliers such as set-top-box makers, software vendors and semiconductor suppliers.

In global markets, Europe has the early lead in IPTV deployments, but iSuppli predicted that Asia ultimately will see the fastest growth rate and will achieve the largest subscriber base by the end of 2006. But also this year, the Americas will lead global markets in IPTV dollars, buoyed by the highest average revenue per user.

In the battle for subscribers, providing a competitive video offering is the cost of entry for service competitors. With that in place, they will have to find ways to differentiate their offerings with interactive services, melding of voice and data networks and tools allowing subscribers to personalize their services, according to iSuppli.

“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,” iSuppli vice president of multimedia content and services Mark Kirstein said.

Differentiation of IPTV services will be essential to bringing new capabilities to TV-based entertainment and attracting subscribers.

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