Growing Popularity of Video-on-demand Pushes Demand for Internet Protocol Television Services
OREANDA-NEWS. With the development of broadband infrastructure and new video compression technologies, internet protocol television (IPTV) has emerged as an opportunity to telecast live TV signals to any smart device through a private broadband network. Additionally, it also provides a platform for telecommunication companies to generate revenue beyond their standard voice and data services. According to a report published by Transparency Market Research (TMR), the global IPTV market is expected to rise from US$24.9 bn in 2013 to US$79.3 bn by 2020, exhibiting a high CAGR of 18.10% from 2014 to 2020.
Q. What are the factors driving the growth of the IPTV market?
The global IPTV market is driven by the rise in the subscribers of Facebook worldwide and also the heightened demand for video-on-demand (VOD). The declining cost of IPTV services and a growing demand for HD channels are also aiding the growth of the market. Other factors fueling the demand for IPTV are the introduction of interactive services across several end user segments and supportive initiatives by governments for increased broadband penetration.
Enterprises across industries such as finance, hospitality, energy, media, transport, and education rely on IPTV as a tool for communication with employees or for training. IPTV is also used for satisfying compliance requirements, minimizing travel costs, distributing on-demand content, or to set up additional revenue outlets, thus driving their demand.
Q. Which region is expected to be a lucrative market for IPTV?
Although Europe led the market in 2013 owing to the supportive infrastructure and rising demand for improved viewer experience, Asia Pacific is expected to be the most rapidly developing market. The market in Asia Pacific excluding Japan, is expected to expand at a high CAGR of 21.10% between 2014 and 2020. India, Indonesia, South Korea, and China are major contributors to the market in the region. The proliferation of IPTV subscribers, expanding broadband infrastructure, and growth of the middle-income group are some reasons behind the growth of the market in the region.
Etisalat partnered with Huawei to introduce an ultra HD 4K IPTV service in the Middle East and Africa in May 2016, enabling its customers to access a 4K linear channel and VOD service. KT Corporation launched a new network device, Olleh TV Air, on in August 2016, which allows IPTV to be accessible wirelessly.
LiveU Inc. is making use of live video over IP networks for the delivery of the 2016 Olympic Games that are being held in Rio. The use of IPTV is giving flexibility to journalists and camera crews while delivering live feeds to viewers across the globe. Such developments are expected to increase the popularity of IPTV and boost the market.