$26bn global IPTV revenue by 2011

The US-based research firm, iSuppli, has published the results of research into the efforts being made by telecom providers to offset fixed-line losses and to better compete with cable companies. iSuppli estimates that these efforts will cause the market for IPTV services to grow by a factor of 34 in the five years between 2006 and 2011.

It is speculated that much subscriber and revenue growth potential remains for the years beyond 2011 as the IPTV market continues to develop. In a recent report entitled “IPTV Content & Services 2007: Telecom Companies Turn up the Heat”, iSuppli predicts that IPTV revenues will rise from $779.2m in 2006 to $26.bn in 2011.

Telecom incumbents see IPTV as an opportunity to make up for declining fixed-line revenues, as many customers cancel their telephone lines in favour of VoIP and cell phones. IPTV will ultimately deliver far more than just television, offering networked access to services like digital music, gaming, Video-On-Demand, home security, and interactive features.

These add-ons should account for an additional $1bn in telecom revenue by 2010.

However, analysts predict that the entire worldwide IPTV industry in 2011 will not be as large as, for example, Comcast alone is, which had 2006 pro-forma cable revenue of more than $26bn.

Comcast Corporation is the leading provider of cable, entertainment and communications products and services in the US. With 24.1 million cable customers, 12.4 million high-speed Internet customers, and 3.5 million voice customers, Comcast is principally involved in the development, management and operation of broadband cable systems and in the delivery of programming content.

The research was supplied by iSuppli Corporation, which helps clients improve performance in the electronics value chain by providing them with the facts, analysis and advice they require to know precisely how to succeed. The company monitors the status of the electronics industry value chain, and continuously updates a score of self-consistent databases that track industry performance and significantly improve forecast accuracy.