Internet Protocol Television Market - Global Industry Segments and Forecast 2014 – 2020

Internet Protocol television (IPTV) technology delivers television services over a packet-switched network using internet protocol suites. Using IPTV, the customers can directly stream media in smaller batches from the source. According to International Telecommunication Union, IPTV is a multimedia service that is delivered over an IP-based network that are managed to provide high level of quality of service (QoS), security, user experience, reliability and interactivity. There are basically three types of services offered by IPTV providers. These include live television, time-shifted television and video on-demand (VOD). Live television services refer to live streaming of the current event broadcast on television. Time shifted services are those in which the users can replay the content that has been broadcasted in the past few hours. VOD services are those in which the customers select the video which it wants to view from a catalog of videos offered by the service providers.

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Major component involved in delivery of IPTV services include: TV head-end, VOD platform, interactive portal, delivery network, home gateway and set-top box. There are basically two type of architectures used for delivering IPTV services, namely, distributed architecture and centralized architecture. IPTV is implemented using several protocols such as H.263 for video compression, modified discrete cosine transform (MDCT) for audio compression and Real-time Protocol (RTP) for live streaming and VOD.

The rising demand for VOD services is boosting the growth of the market. In addition, the capability of IPTV to offer other value added services such as e-mail, voicemail and others, is further adding to the growth of this market. Moreover, the telecommunication service providers such as Verizon, Vodafone and British Telecom, have started offering IPTV services along with the internet services and cellular services. This has helped the telecommunication service providers to diversify their offering and in retaining their existing customers while acquiring new customers. However, for delivering IPTV services there is a minimum bandwidth of around 10 mbps required for high level service quality. As a result, the geographies with lack of high speed internet connectivity will not be suitable for offering IPTV services. In which case, such regions hold tremendous growth opportunities for growth in medium to long term.

IPTV market is segmented on the basis of end-users and geography. The end-user segment consists of corporate consumers and individual consumers. Corporate consumers are currently the leading subscriber base as compared to the residential consumers. However, with the improving network infrastructure, it is expected that individual consumers will have equal contribution in terms of subscriber base and revenue generation by 2020. On the basis of geography, IPTV market is segmented as North America, Europe, Asia Pacific and Rest of the World. Currently, the market is dominated by North American and European countries due to availability of high speed internet connections in these geographies. However, with roll out of fiber optic cables across the countries in Asia Pacific and Rest of the World, it is expected that IPTV will show tremendous growth rates over the forecast period.

The major contribution in terms of subscriber base of IPTV services is form countries such as China, France, United States, South Korea, Japan, Russia, Germany, the Netherlands and Belgium. Countries such as Bahrain, Australia, Brazil and India have shown healthy growth from 2012 to 2013. This growth is attributed to roll out of high speed data networks such as optical fiber networks across these countries. IPTV market also has lucrative growth opportunities in the commercial sectors such as education institutes, financial institutes, hotels and restaurants. Most of these have established internet connectivity; they just have to install a set-top box at their premise to avail IPTV services.

Some of the key players offering IPTV services are Reliance Communications Limited, Bharat Sanchar Nigam Limited, British Telecom, AT&T, Bharti Airtel Limited, Cablevision, China Telecom, Comcast, Deutsche Telecom, Etisalat, France Telecom, Telecom Malaysia, NTT DOCOMO, Telenor, Verizon and Vodafone among others.

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