Both revenue from and subscribers to IPTV services will grow at a better-than-25-percent clip over the next four years, according to a new report from Multimedia Research Group. The latest update from MRG’s IPTV Tracking Service predicts that IPTV subscribers will reach 102 million in 2014, a 25-percent annual growth rate, while revenue from such services will grow at an even faster rate of 27 percent, hitting $46 billion in 2014. The IPTV market in 2010 is worth $17.5 billion.
While early deployments are occurring in North America, with both Verizon and AT&T adding about 1 million subscribers apiece in 2009, the fastest growth going forward will come from the developing economies of Asia, such as China and India. In 2014, the research firm found, Europe will have 45 percent of the global IPTV market, Asia will be second at 31 percent, and North America will follow at 19 percent. Lower prices in Asia will keep average revenue per user below ARPUs in the West, however.
Today more than 800 carriers provide some flavor of IPTV service, and in the next four years up to 23 of those will surpass the million-subscriber mark.
The MRG findings coincide with a study from TeleGeography that said that telcos are seeing rapid growth for their IPTV offerings. The TeleGeography report shows that over the last 12 months, telcos won 24 percent of net new pay-TV subscribers worldwide. In Latin America, North America and Western Europe, carriers added more than a third of net new subscribers.
Operators continue to grab new customers “because they have much greater technical and creative control over their service than their cable-TV competition," said analyst Jose Alvear, author of the MRG report, in a statement.