In 2017, China will be the biggest IPTV market with 77 million subs (Digital TV Research)

3 August 2012 10 h 25 min Comments Off

IPTV has a bright future worldwide, according to the “Global IPTV Forecasts report” developed by Digital TV Research, and China will become the first market by 2017.

The report, released Aug. 1, predicts that 165 million homes worldwide will be IPTV subscribers by 2017, more than tripling the 51 million who subscribed at the end of 2011.

The U.S. won’t be leading the way. The first position will be for China where the subscriber base will grow from 14 million in 2011 (and only 350,000 in 2007) to 77 million subscribers by 2017. The report said that the U.S. will come up in second place with 14.4 million subs by 2017.

“Some may be surprised to see the USA in second place,” admitted Simon Murray, the report’s author, quoted in a news release. “U.S. telcos are aggressively marketing their IPTV products, with both FiOS and U-verse appearing in the top 10 pay TV operators.”

The reports explains the role of the new digital mobile devices in the growth of IPTV martket.

“With sales of WiFi-enabled mobile phones and tablet computers booming, high-speed Internet providers are building WiFi access points in public areas to recruit and retain subscribers. WiFi creates more value for the monthly high-speed data services marketed by cable MSOs and telephone providers, allowing subscribers to access email, social networks and Internet video in public areas”.

Accorttding to Digital TV Research, 114 million IPTV subscribers will be added worldwide between 2011 and 2017 and that 86 million of them will be from Asia Pacific. India, alone, will add 7.2 million—or half the U.S. total—during that time frame.

As subscriber numbers grow, so do penetration percentages. IPTV reached 3.7 percent of TV households at the end of 2011 (up from 0.6 percent in 2007) and will now hit 10.8 percent in 2017.

“Penetration will remain low in Latin America and Middle East and Africa. However it will be as high as 14 percent in the Asia Pacific region by 2017, led by Singapore (43 percent) and Hong Kong (38 percent). The UAE (41 percent) will buck its region’s trend,” the news release stated.

In 2017, 2 Chinese countries will be among the TOP 10 for IPTV subsciptions: China (77.15 million) and Taiwan (3.01 m). 3 Chinese countries will be among the TOP 10 for IPTV penetration: Singapore (43%), Hong Kong (38%) and Taiwan (34%).

Revenues will also grow from $9.7 billion in 2011 to $21.3 billion in 2017 with the U.S. continuing to be the largest IPTV revenue earner with one third of the 2017 total, against 41 percent of earnings U.S. providers raked in in 2011.

Broken down geographically, the U.S. will add $3 billion to IPTV coffers while Asia Pacific tosses in $5 billion (China contributes $1.8 billion of that alone while Japan chucks in $1.6 billion).

In 2017, 2 Chinese countries will be among the TOP 10 for IPTV revenues: China (US$2 Bn) and Taiwan (US$432 million).

Source: Digital TV Research, (01/08/2012)

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