IPTV Will Be Responsible For the Increase of 60% Telco Television Revenues by 2016

IPTV Will Be Responsible For the Increase of 60% Telco Television Revenues by 2016

The big share for Pay-TV markets and multichannel markets is now going for Telcos, and this is according to the latest report gathered from Ovum, which is a part of the Informa Telecoms and Media, an IPTV News publisher.

There is a prediction that with the rise in the awareness and demand for IPTV and DTT platforms, which offer faster distribution than their satellite and cable counterparts, there will be a continued general growth for the demand for global multichannel TV services. And the rise will encompass both the number of subscriptions as well as the revenues that will be generated.

The IPTV publisher has estimated that about 114 million global telco TV platforms have been connected wherein the 54.5 million were for IPTV connections. It is therefore estimated that the number will grow to about 163 million and 116 million accordingly by 2016.

The estimated revenue generated by Telco TV connections in 2011 is US$ 28.3bn, and this accounts for a quarter of the total TV service revenues worldwide. Half of the total amount of revenues for Telco TV services for 2011 was generated by IPTV services, and further study shows that this already big share will continue to increase that it may reach up to 60% by the end of the estimated period, which is in 2016.

The estimate cannot reach more than 60% because of the simple fact that there are still non-IPTV-based Telco TV services that are still in existence and they are still in a sizeable number. Most of them are still operating and being supported by subscribers in Denmark, Australia and South Korea. Another factor in the impending supremacy of IPTV services is that there are still continued cable and satellite TV deployments being launched by Telcos in Romania, Hungary and a bigger part of Latin America.

But regardless of this, there will still be growth in more sophisticated platforms and more people will soon be converting these innovations. This is very possible, according to Ovum because, of the penetration of more home video devices like, tablets and smart TV, which will expand in the next 5 years.