IPTV growth hits pay-per-view market

Popularity of IPTV will contribute to a slow down in pay-TV spend

Iain Thomson

The growth of IPTV is adversely affecting the market for domestic pay-per-view television, according to research from Analysys Mason.

The number of households subscribing to pay-TV services will increase at a compound annual growth rate of 3.2 per cent from 90.6 million in 2007 to 109.2 million by the end of 2013.

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However, IPTV viewing is expected to grow by as much as 15 per cent between 2007 and 2013.

"The adoption of IPTV services will be driven by a combination of factors," said report author Richard Hadley.

"These include the proliferation of multi-play strategies, latent broadband growth, improved brand recognition, broader content offerings, and a general move towards digital TV services as the analogue signal is switched off in Western Europe.

"However, the growing popularity of IPTV among households will contribute to a slow down in pay-TV spend as these predominantly lower-value TV packages are increasingly bundled with telecoms services."

The adoption of IPTV services will be driven by a combination of factors

Richard Hadley Analysys Mason

The report is bad news for broadcasters, since IPTV services are generally lower value than digital pay-per-view.

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