Telco Linear TV Out of Sync with Consumer

The availability of telco TV services continues to expand to new countries just as availability expands within those countries as higher bandwidth networks are built to deliver video, reports In-Stat.

In many European countries, consumers even have choices among four or five broadband providers that offer telco TV service (or IPTV), the high-tech market research firm says. This expansion of availability is driving much of the subscriber growth.

"Subscriber growth in North America is being driven by the largest telcos -- Verizon and AT&T -- who are aggressively rolling out telco TV services in parts of their territories," says Michelle Abraham, In-Stat analyst.

"They are moving full speed ahead with expanding the areas they serve, with subscribers doubling in 2007."

The In-Stat research covers the worldwide market for telco TV. It looks at where telco TV services are growing, which providers are offering telco TV, and what types of services are being offered. Worldwide five-year forecasts for subscribers, ARPU, and subscription revenues are provided by region.

In-Stat's market study found the following:

- Worldwide telco TV subscribers will grow to 54 million in 2011.

- Due to subscriber growth, telco TV subscription revenue will reach $19 billion in 2011.

- Enabling subscribers to watch TV programs on their TV when they want (time-shifting) is more important today than enabling them to watch TV on multiple devices (place-shifting). Regardless, telco TV is primarily built to deliver the legacy linear broadcast channel experience.

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