IPTV: Subs Up, But Value-Adds Are Where It’s At

According to broadband analyst firm Point Topic, global IPTV subscriptions closed in on 60 million at the end of 2011, with 4Q11 showing the biggest three-month increase to date.??

“The year-end is often the strong quarter but in combination with the global recovery in consumer spending, and the will and technical ability to deliver a service, IPTV is really starting to find the sweet spot,” comments CEO Oliver Johnson. “In addition, we’ve seen a growth in the ARPU the operators have managed to generate.” ??

According to a recent report, Point Topic says, “IPTV as a service is very important to operators. It is the ‘stickiest’ of residential services and is a necessity for most ISPs. It also offers the best opportunity, at the moment, of increasing revenue. Globally, ARPU increased by just under 2 percent in the year, total revenues were up over 30 percent and, with the continued subscriber growth, it looks like a very strong positive set of indicators.”?

As margins from bare-bones broadband get ever smaller, the future for operators is in value-added services. Notes Johnson, “Offering the right bundles for their consumers in a particular market, signing the right deals and maintaining a customer base in the face of global competition will be the mark of a successful ISP in the next few years. Get it wrong and they won’t see growth. Get it right, and their prize will be an income base worth several multiples of its yearly value.”?