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IPTV Video Revenue

 
IPTV revenue to reach $26bn by 2011, says iSuppli

Other Topics: IPTV DRM, IPTV Content Service

July 16, 2007

The global IPTV market is expected to grow from $779.2mn in 2006 to reach $26.3bn by 2011, according to market research firm iSuppli.

This figure does not include revenue from advertising or value-added TV services. The report, entitled ‘IPTV Content & Services 2007: Telecom Companies turn up the Heat’, mentions that the rise of IPTV can be attributed in part to a desire on the part of the telcos to offset declining revenues from voice communications. Value-added offerings, such as access to digital music, on-demand gaming, data services and home security, will boost global IPTV video revenue by over $1bn by 2010.
 
 
iSuppli also found that as many IPTV deployment strategies are focused on next-generation video services, competition is likely to be based on features and benefits, such as high-definition programming, digital video recording and remote access, rather than price. Pay-per-view and video on demand services are expected to generate almost $300mn in revenue in 2007.

Advertising is also expected to be another significant generator of revenue, with IPTV-based advertising revenue expected to exceed $1bn annually by 2010. Meanwhile, China is predicted to lead the world in terms of number of IPTV subscribers, due to the size of its population and the Chinese government’s technology focus for the 2008 Olympics. North America will however lead the market in terms of revenue, accounting for over $10bn in IPTV subscription revenue by 2011.

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