The number of homes paying for IPTV is expected to dramatically increase to 165 million by the end of 2017.
A new report from Digital TV Research estimates the growth will be driven by China, which will see a staggering increase from the present 14 million to some 77 million in 2017, representing 47% of the global market.
Simon Murray, report author, said: “Some may be surprised to see the United States in second place by 2017 [with 14.4 million subs]. US telcos are aggressively marketing their IPTV products, with both Fios and U-Verse appearing in the top 10 pay TV operators.”
Of the 114 million subscribers to be added between 2011 and 2017, 86 million will be from the Asia-Pacific region – or three-quarters of the new subscribers. India will supply 7.2 million more IPTV subscribers, up from a very low base at end-2011.
Global IPTV penetration only reached 3.7% of TV households at end-2011, although this was up from 0.6% at end-2007. By end-2017, IPTV penetration will grow to 10.8%. Penetration will remain low in Latin America and Middle East & Africa. However, it will be as high as 14% in the Asia-Pacific region by 2017; led by Singapore (43%) and Hong Kong (38%). The UAE (41%) will buck its region’s trend.
IPTV revenues will climb to $21.3 billion (€17.3 billion) in 2017, up from $9.7 billion in 2011 and $1.5 billion in 2007. The US will remain the largest IPTV revenue earner by taking a third of the 2017 total (down from 41% in 2011).
From the $11.6 billion additional revenues to be created between 2011 and 2017, the US will provide $3.0 billion. The Asia-Pacific region will contribute an extra $5.0 billion, led by China ($1.8 billion more) and Japan ($1.6 billion). France will drop from second place in 2011 to fourth in 2017. However, Russia will rocket to fifth place in 2017.
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