ITV

Tag: MRG

  • OTT revenues to reach nearly $8 billion in 2017

    OTT revenues to reach nearly $8 billion in 2017

    MUMBAI: SNL Kagan’s Multimedia Research Group (MRG) is predicting the OTT SVOD market to record significant growth worldwide in the coming years, with North America leading the pack, followed by Western Europe.

    MRG predicts that revenues will reach nearly $8 billion on more than 120 million subscribers globally by 2017. North America, which has more than 25 OTT SVOD service providers as of 2013, is the most developed market. Subs are estimated to have increased by more than 50 per cent in 2012, reaching nearly 50 million.

    North America is followed by Western Europe. Last year, Western Europe accounted for 11 per cent of the worldwide market with 7 million subscriptions and annual revenue of $575 million. Asia, which has the largest internet population in the world, accounted for nearly five million OTT SVOD subs in 2012 and $255 million in revenue.

    Eastern Europe had seven per cent of the market in 2012 and more than four million subscribers and revenue of $253 million. The OTT SVOD service markets in Latin America, Asia and Eastern Europe collectively comprised 20 per cent of the worldwide subscribers in 2012. These regions are poised for immense growth in the next five years, according to MRG. The Middle East and Africa had a negligible share of the market last year. Though it is expected to grow in the coming years, its contribution will only increase to one percent by 2017.

  • IPTV to face tough climate: research firms

    IPTV to face tough climate: research firms

    MUMBAI: This is a piece of news that should put a word of caution on telecom firms like Reliance Infocomm and Bharti who are keen on IPTV. While the telcos are keen on leveraging the new media platform to augment revenues, two research reports indicate that they face severe challenges ahead.

    One report from research firm Gartner says IPTV services will struggle for years against the established pay-TV and free-to-air (FTA) platforms. Subscribers for television services over the internet, which hit 1.7 million last year, is expected to grow at a 58.8 percent aggregate rate until 2010, when the service is expected to attract 16.7 million subscribers.

    But despite this robust growth prediction, Gartner says IPTV will struggle over the next five years to become a mainstream revenue opportunity for carriers.

    The other report from Multimedia Research Group (MRG) states that uncertainties in large carriers in the US and Asia holds the forecasts for these regions down. Europe should be the strongest IPTV market through 2009, with Asia catching up by the end of the forecast period. IP TV set-top boxes will dominate the capital spending for IPTV services and account for two-thirds of spending.

    Europe is surging ahead with a large number of strong IPTV deployments that include France Telecom, Free, Neuf in France, Telefonica in Spain, FastWeb in Italy, and a number of strong competitive offerings in Scandinavia.

    Gartner meanwhile notes that while the short- to medium-term profits from IPTV will be modest at best, carriers cannot afford to delay the deployment of the IPTV platform. Those who delay too long will risk undermining their ability to be long-term key players in the consumer ‘infotainment’ communications business.

    There will be 3.3 million subscribers to IPTV services in Western Europe by the end of this year and 16.7 million within four years, according to the report.

    The UK currently has one of the smallest numbers of IPTV subscribers in Western Europe with only 75,000 subscribers predicted in 2006.

    Although this is set to increase fairly rapidly to reach 1.9 million by 2010 with the introduction of services such as BT Vision Gartner predicts that the UK will remain a weaker prospect for IPTV. This is mainly due to the existing pay TV landscape and dominance of Sky TV.

    In contrast Gartner predicts that by the end of 2006, almost half of Western Europe’s IPTV subscribers will be based in France – a total of 1.7 million generating revenues of €141m.