As broadband subscriptions continue to grow in the EU27, IPTV is set to treble by
2020. There will be over 160 million broadband subscribers in the EU27 by 2020
and just over one in three will take an IPTV subscription, according to Point
Topic.
The success of IPTV depends primarily on two factors. Firstly is it
available, not only the physical network but at a price the consumer can
afford? Where the cost and the link are suitable there is demand for IPTV as
we’ve seen in France. However in many markets not only are cost and
availability significant barriers but the incumbent TV services are well
entrenched,” said Oliver Johnson, CEO at Point Topic.
Many of the European markets, particularly in the East, have developed their own TV
delivery systems over cable networks. Often small, local and sometimes
non-profit organisations serve a particular community and while they do not
have the same reach as the larger players they are proving to have a loyal
subscriber base.
Operators and ISPs are trying to tackle these barriers. Sometimes a broadband
subscription will actually be priced higher than a service bundled with IPTV, a
classic tactic to try and gain market share. They are all looking at
consolidation too and expect to see increasing buy-outs to try and gain
audience share.
France, with Free Internet as a good example, has much clearer and more transparent
tariffs for IPTV and that has not only earned the consumers trust but allowed
them to align the value they derive from the services with the amount they
pay.
Point Topic estimates that a consumer will pay 66 US dollars per month on average
today for a broadband plus IPTV service and IPTV services revenue will
rise to 14.8 billion in 2020 in the EU27.
By Telecomlead.com Team
editor@telecomlead.com
