IPTV set to skyrocket according to Infonetics

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IPTV set to skyrocket according to Infonetics

IPTV is going to be huge, no doubt about it. This report from Infonetics says IPTV is set to skyrocket: to 53.7M Subscribers, $44B in Service Revenue by 2009. I want my Triple Play, damn it! Why do the major cities always get first dibs on cool stuff such as IPTV? Don't they know I'm more important than the large population centers? ;) I am kidding of course. Actually, I can't complain since I used to live in Norwalk, where Cablevision offered to this city "first access" to cable broadband before any other city in Connecticut (as far as I know). So I was one of the first to get high-speed broadband in Connecticut,

In any event, here are some interesting IPTV statistics that Infonetics was kind enough to share with me ahead of the November 14th date it becomes public knowledge.

CAMPBELL, California, November 14, 2005--IPTV service revenue, subscribers, and capital expenditures are increasing rapidly, says a new report by analyst firm Infonetics Research, IPTV Equipment and Services Market Outlook.

Worldwide IPTV service revenue will skyrocket to over $44 billion in 2009, according to the report. DSL providers account for the bulk of service revenue now, but cable broadband providers will also migrate to all-IP triple-play services in the next few years, possibly offering wireless services as well.

Service providers anticipate big payoffs from IPTV, judging from the significant investments they are making. In 2004, service providers worldwide spent $304 million on IPTV-related services infrastructure, growing to almost $4.5 billion in 2009 as providers look to IPTV services as the means of raising ARPU from a near-saturated broadband subscriber base.

"Service providers have been investing in IP DSLAMs, broadband edge routers, and aggregation switches to prepare for IPTV in the network infrastructure layer, but are having to make significant investments in the services layer too, adding video on demand servers, encoders, and headend equipment as well," said Richard Webb, Infonetics Research analyst and lead author of the report. "But the biggest decision they face right now is who to choose as a middleware partner."

IPTV subscribers are increasing briskly as well, topping 53 million worldwide in 2009. Subscriber growth is strong in all regions, especially in Asia Pacific, where faster forms of DSL like VDSL and ADSL2/2+ are stimulating subscriber growth.

"Service providers in Asia Pacific and EMEA, especially PCCW in Hong Kong and FastWeb in Italy, and independent operators in North America like SureWest, are already experiencing significant IPTV subscriber growth," noted Jeff Heynen, Directing Analyst for Broadband and IPTV at Infonetics Research. "We expect SBC, Verizon, BT, and other large providers to successfully conquer the technical and marketing hurdles before them, and when they do, their IPTV subscriber figures will increase substantially year-over-year."

Growth Highlights
- Worldwide IPTV service revenue will grow to over $44 billion in 2009
- IPTV services infrastructure capex will grow 1,377%, from $304 million to close to $4.5 billion
- The number of IPTV subscribers worldwide will grow to 53.7 million in 2009
- The number of IPTV subscribers in North America will increase 12,985% between 2004 and 2009

Infonetics' report analyzes the fundamental drivers, growth areas, and technologies gaining the most traction in the market, tracking IPTV service infrastructure capex, IPTV service revenue, and IPTV subscribers. The report includes worldwide and regional market size, analysis, and revenue, capex, and subscriber forecasts through 2009 for North America, EMEA, Asia Pacific, CALA, and worldwide.

Download sample data at www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) is the premier international market research and consulting firm specializing in data networking and telecom. Services include market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

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