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Home >> Retailing >> Retailing >> Iptv Video Revenue Hit 26 Billion 2011 Says Isupply >> IPTV Video Revenue to Hit $26 Billion By 2011, Says iSupply
Telecommunications companies (telcos) increasingly are looking to Internet Protocol Television (IPTV) offerings to augment their declining voice communications revenue, causing the market for IPTV video services to rise by a factor of nearly 34 from 2006 to 2011, iSuppli predicts.
According to iSuppli's report, "IPTV Content & Services 2007: Telecom Companies Turn up the Heat," the market for IPTV video services will rise to $26.3 billion in 2011, up from $779.2 million in 2006, not including advertising and value-added TV services.
Telcos view IPTV as an opportunity to recapture the revenue generated by many of the Internet-based services that have bypassed them by traveling through their broadband pipes.
However, IPTV will deliver significantly more than just video services, offering access to digital music, on-demand gaming, data services, home security and other items. These value-added offerings will boost global IPTV video revenue stream by more than $1 billion by 2010.
While this represents huge growth, IPTV still will have significant room for expansion in the years following 2011.
"Subscriber and revenue growth in the IPTV market will be awesome," said Frank Dickson, principal analyst with iSuppli. "However, to put things into perspective, Comcast had 2006 pro-forma cable revenue of more than $26 billion. It is very likely that the entire worldwide IPTV industry in 2011 will not be as large as Comcast alone is."
iSuppli also found that:
Many IPTV deployment strategies are focused on next-generation video services. Because of this, competition for services is likely to focus on features and benefits — rather than price. Features such as high-definition programming, digital video recording and remote access are the main features that telcos are focusing on to gain a competitive advantage pay-per-view and video on demand service will combine to generate nearly $300 million in revenue in 2007.
Advertising promises to be another significant revenue source to augment IPTV video. iSuppli believes IPTV operators have an opportunity to deliver unique value to advertisers through behavioral targeting and interactivity. This will drive IPTV-based advertising revenue to surpass $1 billion annually in 2010.
North America will account for more than $10 billion in IPTV subscription revenue by 2011.
iSuppli's report provides an analysis of IPTV and reviews the various tiers of service. The report then takes a look at the telco-delivered IPTV market from a value-chain perspective including content providers, service providers, broadband portals and aggregators, Internet video on-demand, Internet TV and "over-the-top" offerings, platforms, BSS and OSS, CE equipment and technology.
For more information or to purchase the report, see www.isuppli.com.
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