I wrote yesterday about the opportunity that exists for cable operators, with more than 80 percent of subscribers content to stick with their current providers during the continuing recession. With brand loyalty growing, and subscribers less likely to switch providers right now, the time is ripe for cablecos to strengthen their relationships with customers at a time when more people are staying home instead of spending money on other entertainment. 

 

A similar opportunity exists for the IPTV (News - Alert) market, which again provides in-home entertainment and resources, and can be provided over the same access lines as Internet access, including cable lines (95 percent of cable modem owners say they intend on keeping those services).

 

In fact, according statistics released by the Broadband Forum, the global IPTV market has grew by nearly 64 percent in 2008, buoyed by more than a doubling of its North American subscriber base. The worldwide subscriber count now totals almost 22 million, growing nearly 19 percent in the past quarter — its largest single quarterly growth to date.

 

“During 2008, IPTV operators showed that TV over IP could be deployed on a large scale,” said John Bonsell, a senior analyst with Point Topic, which prepared the report for the Broadband Forum.  “That has been the case particularly in the U.S.”

 

Broadband adoption in North America also continued to climb, at a rate of 12.6 percent over the same period, with DSL access still dominating, though fiber has grown twice as fast as cable or DSL, according to the report. That growth is due to new fiber being deployed, combined with the promise of faster access, which is in increasing demand, with the new applications and services being introduced that require greater bandwidth. Specifically, IPTV providers are benefitting from new fiber lines, which have grown to more than 50 million worldwide.

 

“Despite the economic situation the world is facing, the demand for both broadband and IPTV continues to expand,” said George Dobrowski, Chairman and President of the Broadband Forum.

 

So, with the economy such as it is, the IPTV segment is benefitting, particularly in North America. Cable operators may have an current opportunity, but IPTV may have the real advantage here, providing service over less expensive access lines, which are also growing faster than any other. Also, the WiMAX-LTE (News - Alert) debate rages, but the fact is that WiMAX is seeing real deployments, and can provide an even greater boost to the IPTV market. When you factor in the growth of mobile broadband, there is even greater potential.