Global IPTV Revenue to Hit $26.3 Billion in 2011: iSuppli

Press Release - August 18, 2007

Efforts by telecom providers to offset fixed-line losses and better compete with cable companies will cause the market for IPTV services to grow by a factor of 34 in the five years between 2006 and 2011, according to research firm, iSuppli.

IPTV revenues will rise from $779.2 million in 2006 to $26.3 billion in 2011, iSuppli predicts in a recent report entitled “IPTV Content & Services 2007: Telecom Companies Turn up the Heat.”

Telecom incumbents see IPTV as an opportunity 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 $1 billion in telecom revenue by 2010.

The next four years, however, may only be the beginning of IPTV’s rise to glory. Much growth potential remains for the years beyond 2011.

“Subscriber and revenue growth in the IPTV market will be awesome,” commented iSuppli analyst, Frank Dickson. “However, to put things into perspective, Comcast had 2006 pro-forma cable revenue of more than $26 billion. It is very likely that the entire worldwide IPTV industry in 2011 will not be as large as Comcast alone is.”