Global IPTV services are on track to grow 64% this year, according to Gartner. That performance points to 19.6 million subscribers, who will generate an estimated $US4.5 billion. Gartner pegged Western Europe as the top market on a subscriber basis while US deployments generate more money. The segment will likely more than double across the next four years to 2.8% of households worldwide.
IPTV is said to be the killer application for ISPs to compete with satellite and cable providers in the new environment of the proposed National Broadband Network, according to a whitepaper released by Ericsson Australia and IDC.
The report ‘IPTV in Australia: Why Broadband Service Providers Need a Plan’ said IPTV services will include online gaming, interactive advertising, presence and communications (video/voice), customised user-interfaces and the ability to deliver all these services independent of the set-top-box provider. By the end of 2008, IDC estimates that there will be 8 million IPTV subscribers within the Asia Pacific region (excluding Japan). Australia is expected to have slightly less than one million subscribers by the end of 2012.
These forecasts seem to be reasonable. However, the way the current government is proceeding with the tender - it may not make a decision on the network builder till 2012. The significant element in this process is for the Australian government and Telstra to agree on the contract terms.
On another note, the NBN may in fact level the landscape for an array of broadband service providers requiring a high degree of service differentiation but the key is providing interactive content that is relevant, intriguing and diverse.
Oxygen8, a UK new media advertising company, has released market research results that indicate that:
Two thirds of of the advertisers recognise that consumers are less receptive to traditional advertising, 76 per cent feel that Internet advertising is more effective than both TV and print. 83 per cent of the media companies feel that SMS and email is more effective than the traditional channels. 13 per cent of the media companies and 23 per cent of the advertisers believe that traditional media is still more important than digital media.
These reults give’s IPTV companies a guide on positioning themselves as an interactive new media with advertising rather than a standard TV content delivery company.
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