IPTV penetration of telcos’ worldwide broadband subscribers reached 15 percent in 1Q12, equivalent to 67 million subscribers and 8 percent of the world’s 812 million pay-TV subscribers. However, widely differing IPTV and pay-TV penetration rates by region point to radically different IPTV growth prospects.

According to new data from TeleGeography’s GlobalComms Pay-TV Research Service, North American telcos, led by Verizon and AT&T, have succeeded in selling IPTV service to almost 40 percent of their broadband subscriber bases. However, with more than 80 percent of households subscribing to some form of pay-TV service, North America’s market is saturated, and subscriber growth is at a standstill.

Western Europe’s pay-TV market also is nearing saturation despite having a penetration rate 20 percentage points below that of North America. Market slowdowns here as well as in Eastern Europe can be attributed to the continued prevalence of free-to-air service in many countries.

In these three regions, telcos will be hard pressed to extend their IPTV subscriber base much further, as success will depend on taking subscribers away from other operators in highly competitive markets.

Three other regions also will see IPTV growth stymied but for different reasons. IPTV opportunities in Latin America are tightly constrained by market structure and lack of a supportive regulatory regime, while the prevalence of free-to-air services and wide-scale piracy are barriers to growth in Africa and the Middle East.

In contrast to the mature markets, the Asia-Pacific region has a pay-TV household penetration rate of only 46 percent, and telcos have sold IPTV services to just 12 percent of their broadband subscribers thus far. This leaves room for market growth, while the 987 million households in the region present a huge opportunity for IPTV.

The Daily

Subscribe

Xfinity Mobile Embraces Unlimited Plans

Xfinity Mobile unveiled new unlimited plans that it hopes will simplify its data options and save consumers money. Unlimited and Unlimited Plus plans start at

Read the Full Issue
The Skinny is delivered on Tuesday and focuses on the cable profession. You'll stay in the know on the headlines, topics and special issues you value most. Sign Up

Calendar

Apr 25
2024 Cablefax 100 Awards Magazine Release: April 25, 2024
Jun 13
2024 American Broadband Congress Conference Registration is Open!
Jun 26
2024 FAXIES Awards Nominations Are Open!
Full Calendar

Jobs

Seeking an INDUSTRY JOB?
VIEW JOBS

Hiring? In conjunction with our sister brand, Cynopsis, we are offering hiring managers a deep pool of media-savvy, skilled candidates at a range of experience levels and sectors, The result will be an even more robust industry job board, to help both employers and job seekers.

Contact Rob Hudgins, [email protected], for more information.