Major IPTV Adoption Means $27B Revs By 2014


Worldwide IPTV video providers will continue to see big growth results -- as opposed to older cable and satellite TV providers, which have been slowing down. 

Subscriptions from IPTV (Internet-Protocol TV)-based companies -- telco companies -- will almost double in three years to 70 million from 30 million at the end of 2010, according to SNL Kagan.

Keys to the medium's growth will be IPTV video-on-demand service, as well as a continued push by both video programming retailers and TV networks for TV Everywhere deals, which IPTV companies can benefit from with consumer authentication.

SNL Kagan says there has been a big IPTV adoption rate over the past six years -- a 92.4% compound annual growth rate.

Western Europe continues as the biggest IPTV market and will hit 26.7 million homes by 2014. China is next, rising to 12.4 million subscribers by 2014. The U.S. and Latin America are the third-largest territories, respectively.



IPTV video service revenues will more than double in three years -- growing to $27 billion in 2014 from $12.9 billion in 2010. This will make up a 11% share of all global subscription-TV revenues; in 2010 it was at a 6% share. Five telco operators accounted for 44.3% of the global IPTV subscriber base at year-end 2010.

"Although IPTV presently accounts for just 6% of the world's pay-TV subscribers, the platform is fueling hyper-competition and video service innovation in major markets globally," stated Julija Jurkevic, media and communications analyst at SNL Kagan.

"Telcos often provide the spark igniting consumer interest in multiscreen services, HD and VOD," she adds, "generating parallel support for investment in next generation broadband networks."

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