Global IPTV subs to more than double by 2016

Joseph O'Halloran ©RapidTVNews | 12-01-2012

In the latest of a series of studies looking at the broadcast market over the next five years, Informa Telecoms & Media is forecasting that the pay-IPTV market will more than double by 2016 to 76.5 million users.

Even though penetration of IPTV services will remain stubbornly low at around 5% of the world’s TV household—it is calculated that just 18 countries will have more than one
million IPTV subs by that time—IPTV operators will take huge advantage of the subs growth with a commensurate rise in revenues from $6.2 billion in 2011 to $11.9 billion in 2016.

Common to other surveys of the pay-TV market, Asia has been identified as the key growth engine and is forecast to account for 25.4 million of the 76.5 million global
Total by 2016, driven by rapid growth in China. Informa expects the number of IPTV subs in China to reach seven million by that time, making it the region’s leading country followed by Japan (6.4 million) and South Korea (4.5 million). However, the US will be the largest paying IPTV territory by 2016, with 14 million subs driven by IPTV operators attracting customers with triple-play packages and exploiting the traditionally fraught relationship between consumers and the cable operators. France will retain its position as Europe’s IPTV leader, but growth will slow in coming years as IPTV has already tapped the high-growth urban areas. The analyst calculates that in total France will have 5.1 million paying IPTV homes by 2016.
On a more general point, Informa predicts that by 2016, IPTV penetration will be higher than a tenth of TV households in 25 countries, nine greater than 20%. The vast majority of IPTV subscribers take triple-play or dual-play packages but this will have an adverse effect on ARPU as bundle subscribers will pay proportionally less for the TV part of their service.