The number of homes paying for IPTV will rocket to 155 million by the end of 2016, up from 35 million at the end of 2010, according to Digital TV Research. The IPTV Forecasts report goes on to explain that the Asia Pacific region will supply 85 million of the 120 million additional subscribers during this period. In fact, China will provide 70 million of the 2016 total subscribers, up by more than 10 times its end-2010 total.
The Digital TV Research IPTV Forecasts report covers 73 countries. Report author Simon Murray said: “By 2016, 83% of the paying IPTV subscribers will take triple-play [TV, broadband and telephony services], with 10% paying for dual-play [TV and broadband] and only 7% as standalone TV subscribers.”
Global IPTV penetration was only 2.6% of TV households at end-2010, but will climb to 10.5% by end-2016. IPTV penetration will reach 12% in Asia Pacific, Eastern Europe and Western Europe. By 2016, penetration will be highest in Cyprus (42%).
IPTV revenues will climb to $17 billion (€11.7 billion) in 2016, up from $6 billion in 2010 and less than $1 billion in 2006. The US will remain the largest IPTV revenue earner by taking a quarter of the 2016 total (down from a third in 2010).
Murray added: “In developed countries, there is downward pressure on ARPU as pay-TV competition increases and as DTT makes an impact. ARPU is also being forced down as cable operators and telcos convert their subscribers to dual-play or triple-play bundles. So triple-play IPTV subscribers will generate 73% of the total IPTV revenues in 2016 – lower than triple-play’s proportion of IPTV subscribers as triple-play subs will pay less for TV services as part of their bundle.”