IPTV growth hits pay-per-view market

The growth of IPTV is adversely affecting the market for domestic pay-per-view television, according to research from Analysys Mason.

The number of households subscribing to pay-TV services will increase at a compound annual growth rate of 3.2 per cent from 90.6 million in 2007 to 109.2 million by the end of 2013.

However, IPTV viewing is expected to grow by as much as 15 per cent between 2007 and 2013.

"The adoption of IPTV services will be driven by a combination of factors," said report author Richard Hadley.

"These include the proliferation of multi-play strategies, latent broadband growth, improved brand recognition, broader content offerings, and a general move towards digital TV services as the analogue signal is switched off in Western Europe.

"However, the growing popularity of IPTV among households will contribute to a slow down in pay-TV spend as these predominantly lower-value TV packages are increasingly bundled with telecoms services."

The report is bad news for broadcasters, since IPTV services are generally lower value than digital pay-per-view.

See also:

DSL customers plug into service bundles

Point Topic reveals a 'significant change'  21 Apr 2008

France dominates European IPTV

Country has 75 per cent of IPTV subscriptions in Western Europe  11 Mar 2008

IPTV limited to 'niche services'

Technology will not see uptake in most territories  11 Feb 2008

US surfers flock to web video

138 million Americans tuned into video in November  21 Jan 2008

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