IPTV Market Update

REPORT HIGHLIGHTS: IPTV Equipment, Services, and Subscribers

By: Infonetics

IPTV equipment is the hardware devices and assemblies that are used to receive, process and display television signals in IP video format. IPTV equipment includes head end equipment, media servers, distribution equipment and set top boxes.
Research company Infonetics predicts that the number of worldwide IPTV subscribers will more than double just about every year from 2005 to 2009, when it will reach 68.9 million subscribers. Their research and predictions show that sales of IPTV equipment are forecast to skyrocket from $371 million in 2005 to more than $6.8 billion by 2009. The demand for IPTV equipment will be simulated by the significant increase in IPTV service revenue between 2005 and 2009 with worldwide revenue increasing at a 169% five-year compound annual growth rate. Infonetics predicts that the bulk of IPTV service revenue is currently being generated by providers in Europe.

Infonetics research shows that IPTV service providers are dedicating rapidly increasing amounts of their capital expenditure dollars to IPTV infrastructure, including both content and transport equipment, with worldwide IPTV Capex growing at a 41% CAGR between 2005 and 2009. The number of IPTV subscribers in Asia Pacific more than tripled between 2004 and 2005, where faster forms of DSL like VDSL2 and ADSL2/2+ are stimulating subscriber growth.

The number of IP set top boxes (STBs) sold worldwide will nearly triple between 2006 and 2007, led by China-based Yuxing InfoTech and UK-based Amino Communications, who are currently the worldwide leaders in IP STB unit shipment market share. IPTV is still in the early growth phase with service providers doing trials rather than mass deployments. Figure 1 shows the Infonetics projection of the increase in demand for IPTV equipment between 2005 and 2009.

Infonetics' IPTV report provides top player analysis, current and forecasted market size, and forecasts for IPTV services revenue, subscribers, content and transport infrastructure capex, and equipment (integrated digital headend platforms, VoD servers, IPTV video encoders, IPTV middleware [content delivery platforms], and IP STBs). The report also provides market share for IP STBs.

Infonetics Research (www.infonetics.com) is the premier international market research and consulting firm specializing in data networking and telecom. Services include market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Infonetics
900 E. Hamilton Ave, Suite 230
Campbell, CA 95008, USA

Contact: Larry Howard, larry@infonetics.com, (408) 583-3335

6 Nov 2006

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