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September 27th, 2004
A new market forecast report on Telco TV (IP/TV) from MRG, Inc, reveals that new competition, trials and deployment in Europe, Asia and North America have resulted in accelerated growth rates. Part of MRG's IP/TV Tracking Subscription Service, this new Global Market Forecast reveals how over 2 million subscribers in 2004 will grow to 26 million in 2008, thereby fulfilling the prediction that "2005 will be the year of IP/TV."
"We're surprised by the remarkable dynamics of this market," says Bob Larribeau, MRG Sr. Analyst. "The combined innovation of video program offerings, the attractive ROI of bundled video, data and voice services, and the aggressive global improvement and cost reduction of DSL and IP technologies have much to do with this dynamic growth." Two surprises revealed in the report include the accelerated growth in North America and Europe; and the announcement that US incumbent Telcos are planning to invest in IPTV through their own infrastructure, not just reselling satellite video.
The forecast update also illustrates how VOD (Video on Demand) has moved from an add-on service in the past to an early deployment service, resulting in a greater emphasis on Content Protection and Digital Rights Management (CP/DRM) to protect content from pirating. "Besides the six IP/TV product segments broken down by four market regions, we've added the CP/DRM segment, partially due to the increasing popularity of VOD," states Gary Schultz, MRG CEO. "As on-demand becomes part of basic video services, content protection will grow along with the rest of the markets in four documented regions of North America, Europe, Asia and Rest of World (ROW)."
Unit and revenue growth tracked by these four regions include Subscribers, VOD, Access, Video Headend, Set-top boxes, Middleware, and CP/DRM software. The 43-page report contains 23 charts and tables and tracks the activities of 169 IP/TV service providers worldwide. Members of MRG's IP/TV Tracking Service receive the report free.
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