Skip to main content

Telco TV Delay Causing Subs Downgrade

ABI Research examined the nascent market for Telco TV, and the equipment needed to support advanced video delivery services. At that time, operators were planning quite rapid project deployments, and subscriber number projections were high.

The 2006 assessment paints a somewhat less rosy picture. Many projects have suffered delays, and many companies have downgraded their initial estimates of customer numbers and launch dates.

Michael Arden, principal analyst of broadband and residential entertainment technologies says, "Some technical and scaling issues -- certainly outside North America -- have created delays. More broadly, at least within North America, franchising issues and regulatory and legal aspects have contributed most to the delays in a number of systems. A couple of large projects are now seriously behind schedule."

However Asia, with several successful high-subscriber networks already rolled out, will show growth closer to ABI Research's previous estimates. Europe, and then North America, will follow more slowly than previously thought.

Scaled-back projects offer less to subscribers, and Arden points out that "Verizon, for instance, will not initially offer true IPTV functionality. They have delayed that for now, and are putting out only an RF overlay as their initial video service. To subscribers that is effectively identical to what's offered by the cable companies. So there's little incentive to choose Telco TV services. That will impact subscriber penetration numbers."

However there are bright spots. "We're seeing strong interest in MPEG 4," reports Arden. "Trials are under way, and although no MPEG-4 chips for set-top boxes have arrived yet, they're on the cusp of commercial production. Once that happens, there can be a big jump to MPEG-4."

Popular posts from this blog

How Online Video Exceeded Pay-TV Revenue

The global streaming industry has spent the better part of a decade chasing subscriber counts as the primary metric of success. That era is now formally over. New market data from Omdia confirms that the industry has crossed a decisive threshold; one that shifts the competitive playing field from growth-at-all-costs to monetization discipline. For senior executives navigating media, advertising, and technology strategy, the implications extend well beyond entertainment. A Historic Revenue Crossover Online video revenue increased 13.5 percent to $176 billion in 2025, while pay-TV revenue declined 4 percent to $170 billion; marking the first time in the industry's history that streaming has surpassed legacy pay-TV in revenue terms. This is not a rounding error or a statistical artifact; it represents the culmination of more than a decade of structural disruption to the traditional broadcast and cable TV model. Global subscriptions to online video services reached 2.24 billion by the ...