Skip to main content

IPTV Subscriber Growth in Europe will Treble by 2020

As broadband subscriptions continue to grow in the European Union (EU) countries, Point Topic has forecast that related pay-TV adoption is set to treble by 2020.

“We’re projecting just over 160 million broadband subscribers in the EU27 by 2020 -- and just over one in three will take an IPTV subscription,” says Oliver Johnson, CEO at Point Topic.

According to their latest market assessment, IPTV adoption in Europe has been very different in countries where it is deployed. The success of IPTV depends primarily on two factors. Firstly is it available, not only the physical network but at a price the consumer can afford? Where the cost and the link are suitable, is there demand for IPTV -- as seen in France?

However, in many markets not only are cost and availability significant barriers but the incumbent pay-TV service providers are well entrenched. Many of the European markets, particularly in the East, have developed their own multichannel TV delivery systems over cable networks.

Often small, local and sometimes non-profit organizations serve a particular community. While they do not have the same reach as the larger players, they are proving to have a loyal subscriber base. IPTV service providers and ISPs are therefore trying to tackle these market entry barriers.

Sometimes a broadband subscription will actually be priced higher than a service bundled with IPTV, a classic tactic to try and gain pay-TV market share. European IPTV providers are all looking at consolidation, as they attempt to gain subscriber share in a market.

The success of IPTV in France, compared to other countries in Europe and worldwide, can’t be attributed to a single reason. A number of conditions exist which has made the diffusion of IPTV throughout the market much easier and quicker. But the main driver has clearly been significant competition.

France, with Free Internet as a good example, has much clearer and more transparent tariffs for IPTV and that has not only earned the consumers trust, but allowed them to align the value they derive from the services with the amount that they pay.

Often the price isn’t obvious for each bundle constituent, and there are a number of reasons for this, but the end result is that the consumer resists purchase far more than they might if they felt they had better information.

“We estimate that a consumer will pay $66 per month on average today for a broadband plus IPTV service. If we split out the broadband charge we get revenues today of just over $5.3 billion a year for IPTV services rising to 14.8 billion in 2020 in the EU27 countries,” says Johnson.

However, the entrance of Google and Apple into the internet TV market could be a game changer, according to Johnson's assessment. Along with services like Netflix, Hulu and offerings from other over-the-top (OTT) streaming video service providers, we'll likely see a significant increase in competition and lower prices.

Popular posts from this blog

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

5G Fixed Wireless Access Revenue to Reach $24B

Available Internet access at an affordable cost is essential for everyone to participate in the Global Networked Economy. The deployment of fifth-generation (5G) wireless communications infrastructure is enabling the introduction of lower-cost broadband services in some markets. Fixed Wireless Access (FWA) allows mobile network operators (MNO) to deliver high-speed Internet connections in areas that have either insufficient or no prior wireline broadband access services. It's also used in urban, suburban, and rural areas where fiber optic communication is considered too expensive to install and maintain. With this new technology, MNOs have the potential to provide broadband capability at similar levels to fiber optic networks. Fixed Wireless Access Market Development Therefore, FWA can be used to supplement existing wired broadband Internet service offerings, provide additional broadband capacity, or act as a backup service for home or business applications. Although FWA is well es

Why the C-Suite Craves Digital App Acceleration

Business model evolution and growth are still top priorities for forward-thinking leadership. In fact, 70 percent of surveyed boards of directors will accelerate digital business initiatives, steering the organization to digitally-enabled growth. Chief Financial Officers (CFOs) also plan to protect their digital transformation investments as they cut costs elsewhere in their operations, according to the latest market study by Gartner. Among technology priorities, CFOs have particularly prioritized back-office business automation technology as a key to driving down costs in the face of ongoing inflation and supply chain challenges. Digital Applications Market Development A survey of CFOs found that digital business app acceleration was the top spending priority over the next 12 months, with 98 percent of respondents saying they will protect digital investments. Meanwhile, 66 percent of surveyed CFOs said they plan to increase their digital app investments. A separate survey of CEOs high