Thursday, July 13, 2006

IPTV Forecast by Diffusion Group


According to The Diffusion Group'’s latest report, global IPTV subscriptions are expected to jump from two million to 34 million between 2005 and 2010, reflecting a compound annual growth rate (CAGR) of 60%. North America will experience the most rapid rate of growth during this time period with a CAGR of 78%, followed by Europe, the Middle East, and Africa (EMEA) with a CAGR of 61% and Asia/Pacific with a CAGR of 41%.

While small rural operators dominated in 2005 and 2006 but new entrants like Verizon and AT&T are expected to grow the market accounting for 11.2 mn IPTV subscribers in USA. This will account for 80% on North America EMEA region will perform better in IPTV as several IPTV deployments in the region are on schedule. EMEA will be contributing the IPTV kitty with 14 million subscribers. Asian IPTV market lags despite of the fact that current market leader in the IPTV i.e. PCCW is an asian operator. However several trials are happening both in China and India but regulatory issues & impending launch of DTT in China and low ARPU (read affordability) of Cable TV market looks like a detterent to growing IPTV market in Asia. After many years of political wrangling, the Chinese government is about to announce a single DTV standard for both fixed and mobile services. Once this happens, the government will start pushing more aggressively the distribution of digital set-top boxes as a means of ramping up the number of digital TV subscribers. The Chinese government has stated publicly that this new standard (dubbed 'Digital Multimedia Broadcasting – Terrestrial/Handheld' or 'DMB-T/H') will eventually serve more than half of China's TV viewers, especially those in suburban and rural areas. Until then, analog and broadband based services may well find a healthy market for the few years to come. Kagan's forecast of 25.3 mn IPTV subscribers in 2008 also seems to be in-line of this forecast.

No comments: