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Learn about the IPTV Business Models: Profit and Loss in the Telco TV Space
[November 04, 2008]

Learn about the IPTV Business Models: Profit and Loss in the Telco TV Space


NEW YORK --(Business Wire)-- Reportlinker.com announces that a new market research report related to the Broadband industry is available in its catalogue.

IPTV Business Models: Profit and loss in the telco TV space

http://www.reportlinker.com/p096720/IPTV-Business-Models-Profit -and-loss-in-the-telco-TV-space.html

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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 rapidly 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 b3 to in excess of b40.

-- 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-mid term 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

Tables and charts

Executive Summary

IP as a delivery method has significant technological ramifications

Business models are varied, however some do not justify the cost of launching IPTV

Introduction

State-of-play:

Western European IPTV's mixed bag

Eastern Europe slow to take off

IPTV in context:

IPTV correlated with broadband at a regional level

Incumbent pay-TV has a less obvious impact on uptake

Technology in use in IPTV

Delivery method:

IPTV is unicast

Advantages of IP

Disadvantages of IP

Access and compression:

Access technologies in IPTV

Technology choice has business implications

IP technology falls short for HD

Business models in IPTV

The business case for IPTV

Business models in European pay-TV

Cable TV often a utility option

Satellite occupies the premium TV market

DTT operations aim for mass market success

Adopted approaches - content, features and drivers:

Subscription-free IPTV

Tier 1 operators go for free

Free IPTV: Running backwards?

Broadband the key for free IPTV

Amenity TV

The evolution of amenity TV

To deal with the devil - reselling

Premium TV strategies in Europe

Pay-IPTV in general struggles in Western Europe

Eastern Europe lacks the strong incumbent competition

Triple-play and IPTV

The significance of VoD to IPTV:

The spread of the hybrid model

Profitability in the IP market - does IPTV make money?

Key issues affecting profitability in the IPTV space

Premium content impact

Sports content a double-edged sword

Options restricted for movies

Premium content deals best left until service maturation

Hypothetical service launch case studies

Churn reduction alone not a viable model

Costs outweigh revenues at low ARPUs

More to IPTV strategy than ARPU:

PVRs - selling point or liability?

PVR strategies require higher ARPUs and additions

IPTV fails to help growth of broadband access products

Content is correlated with improved broadband growth rates

Business model summary

Country profiles

Austria IPTV Profile

Belgium IPTV Profile

Denmark IPTV Profile

Estonia IPTV Profile

Finland IPTV Profile

France IPTV Profile

Germany IPTV Profile

Greece IPTV Profile

Hungary IPTV Profile

Iceland IPTV Profile

Ireland IPTV Profile

Italy IPTV Profile

Latvia IPTV Profile

Lithuania IPTV Profile

Netherlands IPTV Profile

Norway IPTV Profile

Poland IPTV Profile

Portugal IPTV Profile

Romania IPTV Profile

Russia IPTV Profile

Slovakia IPTV Profile

Slovenia IPTV Profile

Spain IPTV Profile

Switzerland IPTV Profile

Sweden IPTV Profile

UK IPTV Profile

Tables and Charts

Tables and charts

Executive Summary

Introduction

IPTV subscribers in Europe (2000-2012)

IPTV market shares

IPTV market shares

European IPTV launches by year

Broadband penetration by country (2007)

Broadband vs IPTV penetration (1999-2012)

IPTV vs pay-TV penetration (2007)

Technology in use in IPTV

IPTV distribution is unicast: one-to-one

Satellite TV is multicast: one-to-many

Cable has a one-to-one connection, but uses multicast feeds

DSL technology consumer bandwidths

Access Technology market shares end 2007 (by active IPTV subscribers)

Codec shares end 2007 (by active subscribers)

Access technology and codec use impact content availability on a network

MPEG-2 vs MPEG-4 compression rates

European IPTV revenues

Business models in IPTV

Pay-TV penetration by country

TV platform penetrations across Europe

Key IPTV operators with free TV packages

40 per cent of European IPTV households get their service free

Deviation of broadband growth rates from average - Sweden

The telco's dilemma

IPTV ARPUs across Europe

Proportion of revenues derived from on-demand for Amenity TV

Premium third party soccer content on European IPTV

European pay-TV ARPUs (2001-2012)

Eastern European IPTV ARPUs higher than market average

Eastern European IPTV subscribers (2004-2012)

European IPTV transactional on-demand revenues (2000-2012)

On-demand enabled homes by platform (2005-2012)

VoD revenues as a proportion of total IPTV revenues

European hybrid DTT-IPTV households (2004-2012)

European households equipped with DTT-IP set-top boxes

Major IPTV operators with DTT-IPTV hybrid services

Belgacom vs Tele2 - TV subscriber bases (2005-2012)

Breakdown of costs for the first six years of operation of a basic IPTV service

Comparison of cost-cutting measures on triple-play IPTV (for equivalent customer bases)

Basic triple-play service net profits over double-play service (ARPU comparison)

Basic triple-play service net profits over double-play service (subscriber comparison)

European PVR customers

Proportion of IPTV customers taking PVRs (2001-2012)

IPTV service using PVR: revenues, profits and net advantage over pure double play service

HD-PVR IPTV service ARPU comparison - years taken to achieve net positive outcome

HD-PVR IPTV service subscriber comparison - years taken to achieve net positive outcome

Deviation of broadband growth rates from average - France

Only revenues from broadband subscriptions stimulated by IPTV should be attributed to the IPTV business segment

BT and Telecom Italia broadband growth rates in relation to market average growth rate

IPTV service using PVR: revenues, profits and net advantage over pure double play service

Country profiles

Austria IPTV Profile

Austria IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Belgium IPTV Profile

Belgium IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Denmark IPTV Profile

Denmark IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Estonia IPTV Profile

Estonia IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Finland IPTV Profile

Finland IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

France IPTV Profile

France IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Germany IPTV Profile

Germany IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Greece IPTV Profile

Greece IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Hungary IPTV Profile

Hungary IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Iceland IPTV Profile

Iceland IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Ireland IPTV Profile

Ireland IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Italy IPTV Profile

Italy IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Latvia IPTV Profile

Latvia IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Lithuania IPTV Profile

Lithuania IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Netherlands IPTV Profile

Netherlands IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Norway IPTV Profile

Norway IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Poland IPTV Profile

Poland IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Portugal IPTV Profile

Portugal IPTV market profile

Market shares of primary TV sets

IPTV market revenues

Pay vs free IPTV subscribers duplicate

IPTV revenues

Romania IPTV Profile

Romania IPTV market profile

Market shares of primary TV sets

IPTV market revenues

Pay vs free IPTV subscribers

IPTV revenues

Russia IPTV Profile

Russia IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Slovakia IPTV Profile

Slovakia IPTV market profile

Market shares of primary TV sets

IPTV market revenues

Pay vs free IPTV subscribers

IPTV revenues

Slovenia IPTV Profile

Slovenia IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Spain IPTV Profile

Spain IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Switzerland IPTV Profile

Switzerland IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

Sweden IPTV Profile

Sweden IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

UK IPTV Profile

UK IPTV market profile

Market shares of primary TV sets

IPTV market revenues

IPTV revenues

Pay vs free IPTV subscribers

To order this report:

IPTV Business Models: Profit and loss in the telco TV space

http://www.reportlinker.com/p096720/IPTV-Business-Models-Profit -and-loss-in-the-telco-TV-space.html

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