As the demand for high speed broadband connectivity grows, trends are showing that interactive bi-directional television is increasing at the expense of legacy formats.
According to a new study by ABI Research (News - Alert), IPTV will grow by an estimated 32 percent annually over the next six years to nearly 79 million subscribers globally by the end of 2014.
The new study is called “Pay-TV Subscriptions” is updated quarterly, profiles global pay-TV subscription information. Detailed market trends and market forecast information for key regions and countries around the globe are provided where available.
While satellite and cable TV have traditionally been are among t most important pay-TV platforms around the world, they are likely to retain their footholds for some time a time but their growth rates will slow as IPTV (News - Alert) gets up to speed.
“Some telecom operators which are faced with thinning margins are deploying high-speed access networking technologies to challenge incumbent satellite and cable operators,” said ABI Research Industry Analyst Serene Fong. “They do so by offering compelling alternatives via existing broadband infrastructure, thereby making service subscription easier and more convenient compared to the traditionally more cumbersome and costlier legacy television alternatives.”
IPTV is expected to grow as prices of high speed broadband fall and more users start adopting multimedia services, according to Fong “Usage will initially be concentrated in countries with established high speed Internet technologies such as France, the Netherlands, South Korea and Hong Kong. But as technology progresses and matures, developing countries such as China will rapidly catch up in subscription numbers.”
Operators will continue rolling out IPTV as part of their multi-play strategies, and the right set of technology deployment and consumer-friendly price plans will become increasingly vital. However, Fong cautions that, “While we expect to see greater momentum in the telco TV segment in the years to come, this new television alternative is unlikely to completely replace legacy pay television services immediately.”
Tim Gray is a Web Editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To read more of Tim’s articles, please visit his columnist page.
Edited by Tim Gray