According to MRG, the shift from MPEG-2 to MPEG-4 encoding and headend purchases is expected to begin in volume in the 2007 to 2008, meaning prolonged life for MPEG2 in IP TV systems. Moreover, the rise of IPTV content subscribers will drive an equally rapid installed based of IPTV video headends. Broadband service providers in the U.S., Asia, and Europe have announced or plan to announce deployments of IPTV-based content services, opening up opportunities for all video headend suppliers. One key forecast is that IPTV subscriber revenue will grow from about $400 million in 2004 to over $6 billion in 2008, meaning a substantial investment in content and infrastructure is fast approaching. Whether for SBC, Verizon, or BellSouth in the U.S., China Telecom in Asia, or France Telecom or Telefonica in Europe, IPTV video headend suppliers must help service providers compete in increasingly competitive markets. "IPTV vendors, in addition to offering unique and innovative services, have to use new technologies to achieve competitive advantages,' stated Gary Schultz, MRG principal analyst. "Yet the end-to-end value chain needs to remain price-sensitive to new adopters."
The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the