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Cable Technology Feature Article

November 06, 2008

Report: IPTV Growth Will Be at the Expense of Cable TV

By Nathesh, TMCnet Contributor

Internet Protocol Television (IPTV (News - Alert)) market is gaining wide popularity around the world, a new report from Pyramid has stated. IPTV’s stride will be at the expense of cable TV. IPTV is defined as the delivery of programming over a closed network to a TV set-top box.
IPTV share among the Pay TV market is expected to grow from current three percent to 14 percent in 2013.
Pyramid Research's Media Forecasts are designed to provide competitive intelligence on the pay TV and mobile TV dynamics for 60 countries as well as regionally and globally.
The Media Forecasts track demand patterns for free and pay TV services over terrestrial, satellite, and mobile platforms worldwide, providing market share information at both the technology and operator levels as well as five-year adoption and revenue projections.
"IPTV operators continue to make strong strides in gaining pay TV market share," comments Ozgur Aytar, Senior Research Manager, Broadband & Media. "Pyramid Research estimates that IPTV will drive a global total of 9 million net subscriber additions in 2008, 40 percent of which will come from markets in the Asia/Pacific region."
Analysts say right now IPTV is delivering more than just entertainment. More personalized content — such as on-demand access to stock quotes, sports scores and weather/traffic reports — have already shown up in the service. Richer search capabilities, interactive games and, where legal, network-based video recording services are also available now.
The Forecast also reveals that, with an increasing number of telcos deploying fiber amidst an increasing need to replace their fixed telephony business, FTTx networks are expected to account for close to 30 percent of IPTV revenues in 2013.
IPTV deployments continue to grow and provide triple play services to consumers. These deployments are based on multiple technologies such as passive optical networks, point-to-point Ethernet, digital subscriber line, and multiservice access platform. Furthermore, these deployments provide opportunities and challenges for network equipment hardware and software vendors.
Another IPTV Global Forecast reports that there is a compound annual growth rate of nearly 72% for this IPTV market. And World IPTV Access Infrastructure Market is poised for solid growth due to the increased activity in fiber roll-outs driven primarily by existing and potential consumer video services that will be best delivered via the IP infrastructure, and the intense competition among communication service providers.

Nathesh is a contributing editor for TMCnet. To read more of Nathesh's articles, please visit his columnist page.

Edited by Jessica Kostek