Worldwide IPTV market is expected to show 64% increase in the subscriptions in 2008 due to flooding of new entrants in IPTV market, indulged in high investments and innovations.
According to a latest research by Gartner, global subscriptions to IPTV (Internet Protocol Television) services are likely to touch the mark of 19.6 Million by the end of 2008, which is 64% up from December 2007, as per the news published by telecommunicationindustrynews.
Revenue from IPTV services is expected to rise 93.5% in 2008 and go up to $4.5 Billion by the end of December 2008. Also, 1.1% of the houses worldwide are expected to get the subscription-based IPTV services by means of a set-top box by the end of 2008. It is further projected to increase to 2.8% by 2012.
The key reason behind the worldwide IPTV sector’s growth is the rapid arrival of new competitors, making their ways straight into the consumer video consumption and forcing the IPTV operators to bring out innovative products.
Furthermore, the rural and level one telecom companies in America are increasingly offering a highly competitive pay-TV market that provides localized content and triple and quadruple play offerings and also new TV services based on Internet. Thus, the growth of the IPTV sector is enhanced further.
Additionally, the booming market in Asia, such as South Korea and China, are providing acceleration to the IPTV sector as a consequence of government’s initiative to ease the restrictions. Also, a constant and robust growth is witnessed by the European market as providers of IPTV are continuously indulged in heavy investment in infrastructure and improving speed.
The IPTV market is becoming highly competitive, particularly as web-based video portals such as YouTube and Joost are challenging subscription-based services. These web-based portals are having expandable libraries of the video content generated by users.
According to a Research Analyst at RNCOS, “The growth of IPTV sector in 2008 is mostly due to the slumping prices for STBs, as chipmakers incorporate multiple codec into single chips, higher competition and an emerging consumer base. Future growth, mainly in the developed markets, is expected due to the stress on innovation and distinguished pay-TV services. However, the quality of service should not be outshined by the rush for gains, which could weaken the future prospects of IPTV.”
Related Market Research Reports:
Global IPTV: Market Analysis and Forecast to 2011
Global IPTV Market Analysis (2006-2010)
Booming Consumer Electronics Market in India
