Australians switching over to IPTV

Louise Duffy ©RapidTVNews | 07-02-2012

More than 300,000 Australian households are now subscribing to IPTV, according to a study by analyst firm Telsyte.
It forecasts that more than a third of all subscription TV services in Australia will be provided over broadband by 2015.
Telsyte director of research consulting, Chris Coughlan, said that the total subscription TV industry in Australia generates A$2.7 billion for service providers.
“While most of this revenue goes to the two largest operators, Foxtel and Austar, there are emerging credible services over broadband such as Telstra’s Tbox and FetchTV that are supplementing the mature satellite and cable markets,” he said.
Coughlan added that broadband services were popular with consumers as they combine flexible viewing options with the ability to stream a selection of channels and access to large libraries of pay-per-view content, including new release movies.
“We expect FetchTV will increase its subscriber volumes through its internet service provider [ISP] partners, especially with the addition in October last year of Optus as a reseller,” he added.
The study provides insights into the consumer and industry trends that are shaping the market, including the impact of the National Broadband Network (NBN). “Foxtel faces a dilemma as distribution over the NBN requires it to become a retail service provider supplying broadband access, something that its majority shareholder, Telstra, might be reticent to allow,” Coughlan says.
“It also faces challenges with regard to margin erosion if it follows suit with cut-down offerings” he says.
The report provides a forecast of subscription TV and IPTV connections for the major providers through to 2015, current market shares, commentary on major participants and insights on future developments.