Study Predicts IPTV Success by 2009

Telecom News Editorials Reports Glossary

6:30 am on July 11, 2006 | Category: Business, Telecom Services, Internet, Television

A recent survey conducted by the EUI (Economist Intelligence Unit) and Accenture suggests that IPTV won’t generate “significant” revenue for North American telephone carriers within the next year, but that it will grow into a major cash cow by 2009.

Researchers interviewed 302 executives from the telecom, broadcasting, and media sectors, and found that only 4% of respondents were “very confident” that IPTV would be a significant revenue source by mid 2007.

Looking at the long-term picture, however, 34% of respondents strongly believe that IPTV will become a success by 2009. A further 57% say they are at least “somewhat confident” that this will happen, for a total confidence of 91%.

“It was fairly predictable that IPTV would not be viewed now as a major top-line contributor given that most projects are currently in trial phase or early commercial implementation,” says Accenture executive, Ray Dogra. “But the problems facing telcos with regard to IPTV – regulation, standardization and securing content – should all be resolved within three years.”

Video on Demand and bundled services are the top two IPTV services, which survey respondents believe offer the “most significant opportunities for revenue growth over the next three years.”

This survey represents the basis for what Accenture calls the IPTV confidence index. New studies will be conducted every six months to update the index, and provide some clue of where the internet television industry is headed.