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Research and Markets Adds Report: IPTV Business Models: Profit and
Loss in the Telco TV Space
(Wireless News Via Acquire Media NewsEdge)
Research and Markets has announced the addition of Screen Digest's new
report "IPTV Business Models: Profit and Loss in the Telco TV Space" to
its offerings.
In a release, Research and Markets noted that report highlights include:
The report 'IPTV Business Models: Profit and loss in the telco TV
space,' discusses the business models and strategies adopted by IPTV
services across Europe. IPTV services are becoming commonplace across
much of Europe, however many are struggling to generate subscriber
revenues at sustainable levels. This report looks at some of the
strategies adopted by European IPTV operators and also examines how the
presence of IPTV has impacted the existing broadband business.
Key Findings:
- The end of 2007 saw IPTV reach a total of over 8m households across
Europe. Growth from the platform is one of the highest in pay-TV, with
2007 net additions reaching 3.2m homes. By 2012, well in excess of 22m
homes will be taking IPTV in Europe.
- Many IPTV operators suffer from a restrictive consumer level
bandwidth bottleneck. Roughly 80 per cent of European IPTV customers
subscribe to a service that is not capable of delivering 720p HD video
at standard frames per second to all subscribers.
- IPTV service offers fall into three rough tranches: TV bundled free
with broadband, basic pay (or Amenity IPTV) and premium IPTV, with a
monthly ARPU scale going from just over 3 to in excess of 40.
- Assessment of costs involved in IPTV set-up and operation suggest
that offering free bundled IPTV solely for the sake of churn reduction
cannot be justified from a financial perspective. IPTV must generate
increased net additions to the broadband business segment or TV ARPUs
must be boosted to compensate.
- Only in some markets has IPTV been correlated in increases in
broadband subscriber growths in excess of those of rival DSL players.
In these cases, IPTV is a catch-up solution, with telcos running to
keep pace with cable competitors - much like the way in Lewis Carroll's
'Through the Looking Glass' Alice is told by the Red Queen that she
must run to stay in the same place.
- Premium content is a double-edged sword for IPTV service providers.
High-level content is important in attracting subscribers and
differentiating from competition, however subscriber bases to the
platforms are too low to allow short-midterm profitability from the
move.
In The Report:
- In depth discussion of business models and the roles of premium
content, on-demand services and PVRs in IPTV player strategies
- Overview of technological issues impacting IPTV business models
- Hypothetical case studies examining the potential and time scale for
profitability in the IPTV space
- The impact of IPTV on existing telco businesses
- Country level IPTV market data profiles
Companies Mentioned:
- Belgacom
- BT
- Deutsche Telekom
- Elion
- France Telecom
- Free Telecom
- Homechoice
- Tele2
- Telecom Italia
- Telefonica
- TeliaSonera
Report information:
www.researchandmarkets.com/research/0a8f4e/iptv_business_mode.
((Comments on this story may be sent to newsdesk@closeupmedia.com))
((Distributed on behalf of 10Meters via M2 Communications Ltd -
http://www.m2.com))
((10Meters - http://www.10meters.com))
Copyright ? 2008 Wireless News
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