Multimedia Research Group
announced that its new report on global growth of IPTV will reach 102 million subscribers in 2014, a 25% CAGR. By 2014, Europe will have 45% of the global market, Asia 31%, North America 19% and ROW about 5%. IPTV Operators are using "discreet upgrades" to match and surpass Cable competition. However the expected fast-growth in China IPTV growth has not materialized, due largely to regulatory barriers that favor the large Cable competitors.
The Eastern European IPTV market is moving quickly to early maturity, while ROW markets show faster gains than other regions. "As late as 2007, Eastern Europe had only a few IPTV trials or startups. Now, there are 16 fully operating IPTV Operators and another 3-6 in trial," says Jose Alvear, IPTV Analyst with MRG. "These Operators continue to grow their service base, because they have much greater technical and creative control over their service than their Cable competition."
High ARPUs still favor Europe and U.S. IPTV markets, with largest service and systems revenues also coming from these regions. Of the specific CapEx items tracked by the report, expenditures will grow from US$3.1 billion in 2010 to US$5.1 billion in 2014; and Service Revenue will grow from US$17.5 billion to US$46 billion in 2014. Over 50 companies are profiled in the report, including many in emerging markets in Eastern Europe and ROW.
In the North American markets, since Verizon stopped signing new franchise agreements outside its existing footprint, speculation is growing that Verizon will switch from its QAM/IPTV architecture to an all IPTV (Fiber-based) architecture for future franchises after 2011. Meanwhile AT&T, with no such technical constraints, is free to use a "discreet upgrade" approach to growing bandwidth using a mix of advanced DSL or FTTX as needed. Furthermore, AT&T can grow its success with its Apple iPhone and iPad products with its U-verse IPTV system and drive additional revenues.
The new IPTV Global Forecast Report – 2010 to 2014 (June 2010) is 116 pages.