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Global IPTV revenue to hit $46bn by 2014
A report from MRG reveals global annual growth of IPTV subscribers of 25 per cent CAGR in 2010-2014. Despite economic hardship in some countries, robust Broadband and IPTV investments drive growth as a means to meet and outperform Cable and Satellite competition.
IPTV Operators are using fibre in high-competition markets and advanced DSL such as channel bonding and VDSL2 in other (less competitive) markets. In this way, Telcos can discreetly improve their IPTV bandwidth capacity to sub-markets that need upgrades without overspending in markets that don’t require immediate upgrading.
The Eastern European IPTV market is moving quickly to early maturity, while RoW markets showing faster gains than other regions. "As late as 2007, Eastern Europe had only a few IPTV trials or startups. Now, there are 16 fully operating IPTV Operators and another 3-6 in trial," says Jose Alvear, MRG Analyst. "These Operators continue to grow their service base, due mainly to the fact that they have much greater technical and creative control over their service than their Cable competition does." Of the 102 million IPTV subscribers in 2014, Europe will maintain 45 per cent of the global market, Asia 31 per cent, North America 19 per cent and ROW about 5 per cent. IPTV Operators are using "discreet upgrades" to match and surpass Cable competition.
High ARPUs still favour Europe and US IPTV markets, with largest service and systems revenues also coming from these regions. Of the specific CapEx items tracked by the report, expenditures will grow from US$3.1 billion in 2010 to US$5.1 billion in 2014, and Service revenue will grow from US$17.5 billion to US$46 billion. Over 50 companies are profiled from emerging markets. Despite the obstacles, by 2014, at least 23 SPs (mostly in China and Europe) will have exceeded the million-subscriber mark. Also, while STBs make up over 70 per cent of the CapEx expenditures, expect integrated hybrid, IPTV, and OTT STBs (including connected TVs or "I-STBs" embedded in TV Sets) to account for increasing portions of that CapEx growth. An estimated 125 per cent additional CapEx growth is related to backbone, NID/gateway and VOD Encoder sales not tracked in this report.
In the North American markets, all eyes have recently turned to Verizon and AT&T, each adding about 1 million subscribers in 2009. Since Verizon stopped signing new franchise agreements outside its existing footprint, speculation is growing that Verizon will switch from its QAM/IPTV architecture to an all IPTV (fibre-based) architecture for future franchises in 2011. Meantime AT&T, with no such technical constraints, is free to use a "discreet upgrade" approach to growing bandwidth using a mix of advanced DSL or FTTX as needed. Furthermore, its continued success with new Apple products—despite network slowdowns—continues to drive new revenues its way.
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A report from MRG reveals global annual growth of IPTV subscribers of 25 per cent CAGR in 2010-2014. Despite economic hardship in some countries, robust Broadband and IPTV investments drive growth as a means to meet and outperform Cable and Satellite competition.
IPTV Operators are using fibre in high-competition markets and advanced DSL such as channel bonding and VDSL2 in other (less competitive) markets. In this way, Telcos can discreetly improve their IPTV bandwidth capacity to sub-markets that need upgrades without overspending in markets that don’t require immediate upgrading.
The Eastern European IPTV market is moving quickly to early maturity, while RoW markets showing faster gains than other regions. "As late as 2007, Eastern Europe had only a few IPTV trials or startups. Now, there are 16 fully operating IPTV Operators and another 3-6 in trial," says Jose Alvear, MRG Analyst. "These Operators continue to grow their service base, due mainly to the fact that they have much greater technical and creative control over their service than their Cable competition does." Of the 102 million IPTV subscribers in 2014, Europe will maintain 45 per cent of the global market, Asia 31 per cent, North America 19 per cent and ROW about 5 per cent. IPTV Operators are using "discreet upgrades" to match and surpass Cable competition.
High ARPUs still favour Europe and US IPTV markets, with largest service and systems revenues also coming from these regions. Of the specific CapEx items tracked by the report, expenditures will grow from US$3.1 billion in 2010 to US$5.1 billion in 2014, and Service revenue will grow from US$17.5 billion to US$46 billion. Over 50 companies are profiled from emerging markets. Despite the obstacles, by 2014, at least 23 SPs (mostly in China and Europe) will have exceeded the million-subscriber mark. Also, while STBs make up over 70 per cent of the CapEx expenditures, expect integrated hybrid, IPTV, and OTT STBs (including connected TVs or "I-STBs" embedded in TV Sets) to account for increasing portions of that CapEx growth. An estimated 125 per cent additional CapEx growth is related to backbone, NID/gateway and VOD Encoder sales not tracked in this report.
In the North American markets, all eyes have recently turned to Verizon and AT&T, each adding about 1 million subscribers in 2009. Since Verizon stopped signing new franchise agreements outside its existing footprint, speculation is growing that Verizon will switch from its QAM/IPTV architecture to an all IPTV (fibre-based) architecture for future franchises in 2011. Meantime AT&T, with no such technical constraints, is free to use a "discreet upgrade" approach to growing bandwidth using a mix of advanced DSL or FTTX as needed. Furthermore, its continued success with new Apple products—despite network slowdowns—continues to drive new revenues its way.
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