IPTV Feature Article
June 02, 2009
IPTV Market to Slow, but Still Grow
By Erik Linask, Group Editorial Director
At a time when broadband access is evolving at a torrid pace, and access to broadband-based services is being introduced in areas that have, until now, relied on more traditional means of communication and other services, the challenge is getting a firm grasp on what the future holds.
Take the IPTV (News - Alert) market, for instance. There is no question it has gained momentum in the past year:
- The Broadband Forum says the global IPTV market grew by nearly 64 percent in 2008 to almost 22 million;
- It also notes a 116 percent growth in North America, to some 3.8 million subscribers;
- British research firm Informa Telecoms & Media puts the global subscriber base at just under 20 million at the end of last year;
- The IP set top box market grew 55 percent in 2008, according to In-Stat.
“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 (News - Alert).
The question of sustained growth, however, may be up for debate, given a combination of a continuing recession and increased competition from other video services providers, including a limited potential subscriber base due to those competitive services.
Many telcos already are well underway with their TV services offerings, but that also means they have already gained a share of their potential customers, and others have already rejected the notion of IPTV, opting for their cable or satellite alternatives. The economy certainly plays a role, as investment in new IPTV systems may be drying up.
Given these factors, Michelle Abraham, analyst with In-Stat, suggests that, “unit shipments of IP set top boxes will see only slight increases in 2009 and 2010.”
Certainly, the technology vendors developing IPTV components, including semiconductor manufacturers like Broadcom, Intel (News - Alert), and STMicro, would beg to differ, as the continue to push their technologies out to STB vendors, like Motorola and Cisco. Motorola, in fact, retained its STB market lead, but lost ground to Cisco, which teamed with Avail Media on a new IPTV solution designed to enable service providers to transform themselves from being merely “voice and data providers into ‘experience providers,’ who can offer any-play services, anywhere and at any time.”
In other words, they are hoping the solution will help overcome the economy and other factors to drive growth in the IPTV provider community.
While various market factors are sure to influence the growth of IPTV, even In-Stat’s own predictions earlier this year don’t indicate a significant slowdown of the market, as Abraham suggests.
- Business Insights estimates IPTV subscriptions will reach six million households in the U.S. by 2010;
- Infonetics predicts IPTV subscriptions will grow to nearly 45 million in 2009;
- ABI Research (News - Alert) predicts subscribers in excess of 79 million by 2014;
- In-Stat says the IPTV market will grow to 71.6 million by 2012.
Perhaps the IPTV market’s growth will experience a slight slowdown in the coming few years, but if these predictions are anywhere near being close to reality, the slowdown will still result in significant growth. Certainly, advances in power management, increased adoption of open software platforms, and support for new video technologies will only serve to boost the adoption of IPTV services — along with the continued increase in
broadband access and speeds.
While the growth rate may slow, all signs point to continued growth of the IPTV industry, and with the market expected to continue to climb, this is an ideal time for vendors in the IPTV market to highlight their presence by applying for INTERNET TELEPHONY’s 2009 IPTV Excellence Award.
As TMC (News - Alert) president Rich Tehrani notes, “The IPTV Excellence Awards will provide recognition to forward-thinking companies that have contributed to the growth and innovation in the IPTV market.”
Erik Linask is Group Managing Editor of TMCnet, which brings news and compelling feature articles, podcasts, and videos to nearly 3,000,000 visitors each month. To see more of his articles, please visit his columnist page.
Edited by Erik Linask


