Internet Protocol Television (IPTV)

 

Internet Protocol Television (IPTV)

Internet Protocol Television (IPTV)

Internet Protocol Television (IPTV) with multiple media streams, channel-surfing, downloads and streaming video is taking off. Global IPTV subscriber numbers rose 32 per cent to 97 million in 2017, up from 76 million in 2015, according to a new report from GfK.

Staying current on movies and TV shows was one of the main drivers of IPTV growth last year. Revenue generated by IPTV increased to US$4.1 billion from US$2.9 billion the year before. Over half of total revenue in the industry comes from the provision of video streaming services.

The report suggests that direct-to-consumer services, including video streaming, were the most important driver for IPTV revenue growth. Although subscription-based video streaming is growing faster than any other IPTV service, such services still account for only 11 per cent of total revenue, despite growth in the market.

Internet Protocol Television (IPTV)

"People are starting to switch to 'cloud' IPTV solutions for more innovative ways to access content across a wide range of devices," said Richard Broughton, GfK's head of TV.

As the popularity of watching video on smartphones, laptops and tablets increases, it is no surprise that smartphones are expected to play a key role in this year's growth for IPTV. The GfK report says mobile IPTV revenue will rise by 13 per cent this year, a sharp rise from 5 per cent in 2016.

The overall online video market has also been growing quickly in recent years, but some viewers still prefer watching video on traditional TV sets. The GfK report suggests that live and catch-up TV is set to drive the growth of the TV set market, with a 23 per cent increase in sales expected in 2017.

However, the same report also suggests that traditional TV sets are losing market share to lower-priced smart TV sets. These devices are expected to account for 41 per cent of total TV sales this year, while the value of TV sets sold in Europe is expected to fall by 3 per cent.

NPD and GfK's combined IPTV report does not include subscriber data on pay-TV services, and it is clear from its report that there is still a long way to go before pay-TV becomes a mass market. Global revenues from pay-TV services in 2016 were estimated at US$223 billion, while IPTV revenues stood at US$96 billion.

Written By MubashirAli