Telcos are turning to internet protocol television (IPTV) to boost revenues as voice communications revenue declines; as a result, the IPTV video services market is forecast to explode by a factor of nearly 34 from 2006 to 2011, writes Twice.com, citing an iSuppli report.
The market for IPTV video services will reach $26.3 billion in 2011, up from $779.2 million in 2006, not including advertising and value-added TV services, according to iSuppli’s “IPTV Content & Services 2007: Telecom Companies Turn up the Heat.”
Moreover, in addition to video services, value-added offerings such as access to digital music, on-demand gaming, data services and home security are expected to total some $1 billion by the end of 2010.
Some other findings from the iSuppli report:
- North America will account for more than $10 billion in IPTV subscription revenue by 2011.
- Pay-per-view and video-on-demand services will combine to generate nearly $300 million in revenue in 2007, as many IPTV deployment strategies focus on next-generation video services. Therefore, competition for services is likely to revolve around features and benefits rather than price.
- Advertising will also be a significant revenue source as IPTV operators leverage behavioral targeting and interactivity to deliver unique value to advertisers. As a result, IPTV-based advertising revenue will surpass $1 billion in 2010.