The number of digital TV households in Western Europe is going to grow from 61 million in 2006 to 116 million by the end of 2011, according to figures from Informa Telecoms & Media, representing 90 per cent growth over the period. The same research company predicts that in Eastern Europe, digital uptake will grow from 6.1 million digital TV homes in 2005 to just under 32 million households by the end of 2011, representing 520 per cent growth over the period. That will still leave Eastern Europe with only 23.4 per cent of television homes receiving digital services in five years time, compared with 75 per cent of Western European households at the end of the forecast period. These figures (all courtesy of Informa Telecoms & Media and taken from their reports 'Eastern European TV' and 'Western European TV') reinforce the impression that for IPTV operators targeting Eastern Europe, there is still everything to play for.

Informa calculated that 4.6 per cent of Eastern European TV homes received digital services in 2005, and the company's figures clearly illustrate the potential in the region for the delivery of advanced services. They show that the number of digital TV homes in the Czech Republic and Hungary will grow eight-fold, with Romania witnessing a 10-fold increase. Eastern Europe's current digital TV powerhouses, Poland and Russia, will see four-fold and nearly eight-fold digital TV growth respectively. Poland will have 6 million digital TV homes by the end of 2011 and Russia will have 10.6 million. But that still only represents 47 per cent digital penetration in Poland (by 2011) and 19.8 per cent in Russia.

For regional incumbent telecoms operators, major European telecoms groups looking to expand in the region, ISPs and other alternative broadband service providers, these figures are both an opportunity and a challenge. The opportunity is clear - a relatively immature television market where there is strong economic growth combined with significant structural changes that will drive new media services, including the impact of privatisation, EU accession, telecoms deregulation and new investment in telecoms/media infrastructure. The challenge for IPTV providers is to take enough market share to make a viable business in the face of competition from cable and satellite, both of which will be seeking to exploit existing customer relationships to migrate subscribers to added-value digital services.

This market potential, and the opportunities and challenges presented to IPTV providers (and also their cable and satellite rivals) in the region, are the reasons Informa Telecoms & Media launched IPTV World Forum in 2006 in Budapest. This event was followed up in 2007 with a successful conference and exhbition in Prague.

Eastern Europe has its own character in terms of Pay TV penetration, the mix of analogue versus digital, satellite compared to cable and terrestrial, international versus local content, and the penetration of advanced, interactive services like VOD and PVR. IPTV World Forum Eastern Europe 2008 - which returned to its original host city, Budapest - reflected this and the region's own economics, business and competitive dynamics and consumer aspirations.

The event also drew upon the experiences of IPTV in Western Europe, where Informa Telecoms & Media has held the IPTV World Forum in London for the last four years and charted the emergence of IPTV as a technology and business. Thus IPTV Eastern Europe provided access to the thinking that is now driving major IPTV providers forward in advanced markets, including the strategies for differentiating services in mature digital TV environments, expanding revenue generating opportunities to repay investments, and ways to reduce subscriber churn.

IPTV World Forum Eastern Europe 2008 considered the current Pay TV markets in the region and the strategies of major players in terms of digital migration, the introduction of two-way interactive services and triple-play or quad-play offers. It investigated the benchmark services required for IPTV market entry including broadcast TV, VOD and PVR functionality. Key business and marketing issues also addressed questions like how much on-demand content is enough? whether service providers need a 'long-tail', how on-demand should be packaged and monetised, and what role on-demand and interactive advertising can play?

On-demand is a key differentiator for IPTV and in many instances, IPTV providers in Eastern Europe can pioneer the service in their markets, so this service category was addressed in detail. The conference considered content acquisition and rights deals with broadcasters, sports and movie rights owners, for example. Among other areas that were discussed: does free-VOD help customer acquisition? and does it help to upsell pay-per-view VOD services to subscribers using free on-demand services? Are broadcasters ready to support 'Replay TV', adding their broadcast programming to the on-demand archives, and what type of on-demand content works best in the region?

It focussed on the emergence of PVR as a key weapon for churn reduction and revenue generation and asked whether any digital TV service could attract high-end subscribers without it. Why did some IPTV providers put hard-disk PVR set-tops in the home, and others use network storage? What are the business models (subsidisation, consumer purchase, retail etc.) for PVRs. What lessons can be drawn from other markets regarding rights issues and the way operators, broadcasters and advertisers work together to get network PVR services launched? Are 'start-over TV' type services (programmes ready to view on-demand soon after the broadcast stream begins) good enough for now, or should operators seek full network PVR (instant availability of the on-demand stream)?

IPTV World Forum Eastern Europe 2008 addressed the fundamental access issues for xDSL and FTTx based services and considered the role of digital terrestrial television (DTT) in delivering live broadcast television, where possible. What effect will the emergence of DTT in the region and, eventually, digital switch-off, have on the market? Are major telcos looking to become television providers on all platforms - following the vision of KPN in the Netherlands (DTT, IPTV and eventually mobile) and Bell Canada (satellite, fibre-to-the-home and now DSL trials)?

The conference consider the impact of HDTV, covering consumer demand and HD-ready television penetration, content availability and the economics of delivering broadcast and on-demand HD across telco networks. Is HDTV a business for Eastern Europe today, or just a service? Indeed, a persistent theme of IPTV World Forum 2007 is how IPTV can be moulded into a revenue generating business and not just an attractive consumer proposition.

In 2008 we highlighted the impact of major telecoms groups in the region and how this is shaping the television environment, asking whether the emergence of quad-play strategies involving voice, data, video and now mobile telephony can provide a competitive advantage. The bundling of mobile phone with broadband and IPTV is a significant new development that plays to the strengths of larger operators, but where does it leave ISPs whose traditional business is broadband connectivity with perhaps some portal/content business but no television offer? Is there a future for the single-play or dual-play in Eastern Europe and, if so, what are the strategies for success? Is television/VOD becoming a basic requirement for any broadband-based service bundle and, if so, just how many providers can deliver television successfully? Is the future of ISP-delivered video in subscription, Pay TV or 'free-to-air' advertiser-driven services, or both? How can ISPs set themselves apart from other broadband/IPTV providers?

Delegates who have attended IPTV World Forum Series events will know that our shows have a much higher-than-average input from operators. Our 2009 event in Prague (20-21 October 2009) will continue this pattern, giving visitors valuable insight into the plans, deployment and expansion strategies, technology choices, business models, marketing approaches and future considerations of many of the region's key players. Our operator speakers are helping to make IPTV a reality in Eastern Europe and they will be joined by a carefully selected group of commentators and experts in various fields of technology, business and content to provide a balanced show that covers the topics that are relevant to this region today.

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