[opendtv] PR: Global IPTV Revenue Will Top $17 Billion by 2010

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 19 Jan 2005 11:28:28 -0500

Yesterday, Phillip Swann, who writes the TV=20
Predictions newsletter (tvpredictions.com),=20
offered a link to the following story, with the=20
following run-up:

Global IPTV to Top $17B by 2010?
Study says Broadband-delivered TV will boom.

I have predicted that Internet TV, the delivery=20
of TV signals over the Net, will be the next big=20
thing in television. However, a new study says=20
that it could be even bigger than I imagined. The=20
report says IPTV revenues will top $10 billion=20
globally by the year 2010. To learn more, go to:

http://news.yahoo.com/news?tmpl=3Dstory&u=3D/prweb/20050117/bs_prweb/prweb19=
8746_1

Maybe Bert can set Phillip straight on his abuse of terminology...

;-)

Regards
Craig


Global IPTV Revenue Will Top $17 Billion by 2010

Mon Jan 17, 5:03 PM ET

Dallas, TX (PRWEB) January 17, 2005 -- IPTV, or=20
the distribution of a television service over=20
broadband access lines, will take a turn towards=20
full commercial deployment in 2005. The 2004=20
launch of services such as Maligne TV and=20
CanalSat DSL in France, FastWeb in Italy, and the=20
announced 2005 TV-over-DSL launch by BellSouth,=20
SBC and Verizon in the United States have=20
propelled this new technology onto the front page=20
of industry attention. "The Business of IPTV:=20
Global Analysis & Forecasts," a new study from=20
TDG Research, suggests that the majority of=20
global IPTV growth will be fueled by hybrid=20
deployments that combine digital satellite or=20
terrestrial TV services with IP-based TelcoTV=20
offerings.

"The television markets around the world vary=20
greatly in terms of incumbent pay television=20
offerings and broadband penetration," says Herv=E9=20
Utheza, consulting analyst with TDG Research and=20
a digital media industry executive. "The chances=20
of TelcoTV"s success will vary greatly depending=20
upon the extent to which these two services have=20
penetrated individual geographic markets. In=20
other words, when it comes to identifying the=20
real opportunities for IPTV on a global basis,=20
understanding the specificities of the regional=20
markets is paramount. Hence, our new study covers=20
three specific geographic regions and 28=20
countries."

Other important findings of the study include: *=20
    Worldwide IPTV subscribers will pass the 20=20
million mark around 2010, a volume dominated by=20
hybrid architectures deployments as opposed to=20
stand-alone TelcoTV VoDSL solutions.=20
IPTV-generated revenue will experience a compound=20
annual growth rate (CAGR) of approximately 102%=20
between year-end 2004 and year-end 2010. *    =20
The cross-over point between MPEG-2 video=20
transmission bandwidths and sustained broadband=20
access bandwidths in volume deployments has now=20
been reached, making it possible to deliver a=20
quality digital video service to consumers over a=20
broadband connection. Moreover, more efficient=20
video codec chipsets are now starting to be=20
available in ASIC technology thus making it=20
possible for consumer premise equipment (CPE) to=20
reach low-cost, volume-deployment level prices. *=20
    The power of IP as a digital video transport=20
technology will rapidly expand beyond TelcoTV=20
operators to affect multiple network topologies.=20
Satellite operators will augment their broadcast=20
offerings with IPTV-based "on-demand" services in=20
order to compete with cable TV players.=20
Additionally, Digital Terrestrial Television or=20
DTT adoption will also benefit greatly from=20
IPTV-based premium offerings. *     For satellite=20
TV service operators, IPTV will provide a means=20
of extending their current broadcast offering to=20
including on-demand movies and programming, thus=20
allowing them to compete with cable"s new=20
video-on-demand services. IPTV and its more=20
efficient codec technologies are also expected to=20
facilitate the continued growth of HDTV channels,=20
while being poised to enable an extension of=20
their core DBS service beyond the satellite=20
set-top box - for example, to mobile consumer=20
devices connecting to the main satellite=20
receiver. *     For cable operators, IPTV=20
technologies will play a determining role in the=20
advent of cheaper set-top boxes (STBs), network=20
equipment, and multiplexing devices. In the=20
United States, the New Generation Network=20
Architecture (or NGNA) effort led by CableLabs=20
will be the foundation for the extension of=20
IP-based core networks, able to indifferently=20
deliver video, data and voice over the same=20
network equipment, as close as possible to the=20
consumer home, thus reducing the "last-mile"=20
plant investment. *     The primary competitive=20
determinants for consumer adoption will be (1)=20
breadth of content offerings, (2) pricing of=20
services, and (3) creation of unique compelling=20
bundled offerings. *     Early IPTV=20
differentiators will include an "a la carte"=20
pricing model, a move that will put pressure on=20
the traditional business practices of incumbent=20
PayTV operators. *     TelcoTV adoption around=20
the world will vary greatly, as the penetration=20
of PayTV and broadband differs. In markets such=20
as the United States where PayTV penetration=20
approximates 80%, careful attention must be given=20
to program pricing and packaging, as well as=20
identifying specific target markets. *    =20
Despite the increased use of IP-based video=20
transport technologies, independent web sites and=20
Internet-based IP TV and video services will=20
remain a niche proposition and may be aggregated=20
or acquired by the larger IPTV operators.

TDG"s new IPTV competitive analysis and forecast,=20
"The Business of IPTV: Global Analysis &=20
=46orecasts," is the most comprehensive treatment=20
of global IP-video opportunities available today.=20
The analysis combines a critical examination of=20
the business of IPTV, deconstructing more than=20
fifteen existing IPTV service vendors, the=20
economics of various network and CPE=20
configurations, and detailed forecasts for 28=20
countries in North America, Europe, and AsiaPac.=20
The report also includes provisional profit/loss=20
analyses using three different incumbent PayTV=20
and broadband penetration models.

About TDG Research
TDG Research is a "think tank" of consumer=20
technology analysts charged with providing=20
timely, actionable intelligence designed to best=20
position new consumer technologies for rapid=20
diffusion. Our team is committed to providing=20
market research and strategic consulting services=20
based on conservative, real-world analysis and=20
market forecasts grounded in consumer research.=20
=46or more information about TDG Research, visit=20
our website at www.tdgresearch.com or email=20
info@xxxxxxxxxxxxxxx .

Contact:
Andy Tarczon
andy@xxxxxxxxxxxxxxxxxxxxx
214-677-9723

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