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iSuppli: IPTV revenue to hit $39.1B by 2011

Posted: 10 Apr 2007 ?? ?Print Version ?Bookmark and Share

Keywords:IPTV worldwide subscriber? Internet protocol TV? IPTV market?

The number of worldwide subscribers for Internet protocol (IP) TV is expected to rise at a compound annual growth rate (CAGR) of 92.5 percent from 3.9 million in 2006 to reach 103 million in 2011, as the competition heats up for the delivery of bundled voice, Internet and entertainment services, according to iSuppli Corp.

The research firm also projects IPTV subscription revenue to grow more than 40x between 2006 and 2011, rising from $960.5 million to $39.1 billion.

"IPTV promises to add interactivity, personalization, integration of voice and data and value-added services to television entertainment," said Frank Dickson, principal analyst for multimedia content services at iSuppli. "Because of the wide variety of services offered by the technology, companies from various industries are being drawn into the IPTV/triple-play fight, sparking intensified competition among market participants."

iSuppli said cable television and telecommunications providers in North America are battling for IPTV revenue. The cable companies are using their significant installed base of pay television subscribers and fast data rates using their cable-modem technology as they expand their services into data and voice communications, which telecom companies view as "an act of war," iSuppli said.

In response, telecom companies Verizon and AT&T are rolling out IPTV services using advanced broadband networks that feature higher data transfer rates, iSuppli said. The cable companies have responded by offering "triple-play" solutionspackaging voice, Internet and televisionin order to retain their current subscribers and to attract voice and broadband subscribers away from the telcom companies, the firm added.

While some experts are forecasting the demise of the satellite television industry, companies in that area are taking steps to improve their competitive positioning, iSuppli said, noting that DirecTV and Echostar have placed an emphasis on high-definition (HD) programming and the offering of unique content in order to attract consumers who are looking for something different from what will be offered by the cable companies or telcos.

As a result of such moves, satellite companies have been able to add impressive numbers of new subscribers, iSuppli said. Using out-of-market sports packages and specialty programming, they have positioned themselves well to appeal to the large portion of the population that is looking for alternatives, according to iSuppli.

- Dylan McGrath
EE Times

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