SOURCE: Infonetics Research

October 31, 2006 17:22 ET

IPTV equipment sales exploding to $6.8B, subscribers to 68.9M by 2009, says Infonetics

CAMPBELL, CA -- (MARKET WIRE) -- October 31, 2006 --There are many challenges to overcome before IPTV goes mainstream, says a new report from market research firm Infonetics Research, but many of those challenges are expected to be overcome soon enough for the number of worldwide IPTV subscribers to more than double just about every year from 2005 to 2009, when it will reach 68.9 million subscribers.

Infonetics' report forecasts IPTV service revenue and service provider capex to increase dramatically as well, and sales of IPTV equipment to skyrocket -- from $371 million to $6.8 billion -- between 2005 and 2009.

"IPTV is still in the 'kick the tire' phase, with service providers doing trials rather than mass deployments, but there's no question that IPTV is going mainstream," said Jeff Heynen, directing analyst for Broadband and IPTV at Infonetics Research and lead author of the "IPTV Equipment, Services, and Subscribers" report.

"The only question is about the timeline, because there are a lot of pieces to this puzzle, and what looked like a 1,500-piece puzzle is really a 5,000-piece puzzle that's more complicated to sort out," Heynen continued. "The technical hurdles are well known, but the regulatory issues are less predictable. Legislators are asking, 'How do we treat and regulate IPTV?' While content owners are asking, 'How do we best take advantage of these new markets?' It's complex, and depending on how the regulatory and content licensing discussions go, the timeline for IPTV taking off could either slow down or speed up."

Report Highlights

--  Service providers are expected to generate significant IPTV service
    revenue between 2005 and 2009, with worldwide revenue increasing at a 169%
    five-year compound annual growth rate
--  The bulk of IPTV service revenue is being generated by providers in
    Europe
--  Service providers are dedicating rapidly increasing amounts of
    their capital expenditure dollars to IPTV infrastructure, including both
    content and transport equipment, with worldwide IPTV capex growing at a 41%
    CAGR between 2005 and 2009
--  The number of IPTV subscribers in Asia Pacific more than tripled
    between 2004 and 2005, where faster forms of DSL like VDSL2 and ADSL2/2+
    are stimulating subscriber growth
--  The number of IP set top boxes (STBs) sold worldwide will nearly
    triple between 2006 and 2007, led by China-based Yuxing InfoTech and UK-
    based Amino Communications, who are currently the worldwide leaders in IP
    STB unit shipment market share
    
Infonetics' IPTV report provides top player analysis, current and forecasted market size, and forecasts for IPTV services revenue, subscribers, content and transport infrastructure capex, and equipment (integrated digital headend platforms, VoD servers, IPTV video encoders, IPTV middleware [content delivery platforms], and IP STBs). The report also provides market share for IP STBs.

For sales, contact Larry Howard, larry@infonetics.com, (408) 583-3335, or download sample data at www.info.infonetics.com.

Infonetics Research (www.infonetics.com) is the premier international market research and consulting firm specializing in data networking and telecom. Services include market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Contact Information

  • Press Contact:
    Jeff Heynen
    Directing Analyst, Broadband & IPTV
    Infonetics Research
    +1 408.583.3359
    Email Contact