Global IPTV subs, revs set to double over five years
Joseph O'Halloran ©RapidTVNews | 27-03-2012
The IPTV industry is set for rapid growth over the next five years, doubling in size to be worth $12 billion, according to new research from Informa Telecoms & Media.
The analyst’s data showed that by the end of 2011 there were 34.3 million global households taking a pay IPTV subscription as their primary TV service, up by 6.7 million year on year, and that his will likely top rise to 76.5 million by 2016, fuelling a commensurate rise in revenues from $6.2 billion in 2011 to $11.9 million in five years’ time.
Yet even though thus would rank as excellent growth, it still would means that penetration would remain very low with only 5% of the world’s TV households expected to subscribe to IPTV platforms by 2016. Furthermore, Informa adds that even by 2016, only 18 countries will have more than one million IPTV subscribers.
Regionally while North America and Western Europe added 1.6 million each Asia Pacific was the IPTV hotspot over the last twelve months, and will be for the next five years, responsible for 2.4 million of the additions for 2011 and set to be the largest region by 2014. Two years later it is projected to account for 25.4 million of the 76.5 million global total, driven by rapid growth in China where the number of IPTV subs in China will reach seven million. Hot on the heels will be Japan (6.4 million) and South Korea (4.5 million).
From a business perspective though, the US will retain its lead as largest paying IPTV territory, with 14 million subs by 2016. Hampered by slow growth now that its urban areas have been covered, France will remain Europe’s leader with 5.1 million paying IPTV homes by 2016, up from 3.7 million in 2011. Informa believes that France also has a considerable number of other homes receiving IPTV signals but not paying for them.
Of the $11.9 billion IPTV subscription and on-demand revenues by 2016, total subscription revenues will stand at $9.8 billion in 2016: triple-play subs are set to contribute $6.6 billion of that total, with dual-play subs bringing in $1.7 billion. Standalone revenues will only be $1.5 million in 2016. By territory, only the US ($3.3 billion) and Japan ($1.8 billion) will generate revenues of US$1 billion or more by 2016.