MEDIA RELEASE PR34971
Bundling Strategies, Broadband Penetration will Shield Europe's IPTV Service Adoption in
Economic Downturn, says Pyramid
CAMBRIDGE, Mass., June 10 /PRNewswire-AsiaNet/ --
The ongoing economic downturn will impact IPTV adoption and service
revenue growth differently across Europe during the next year due to varied
broadband penetration levels, the availability of cheaper alternatives, and
telcos' response to competition, according to a new report from Pyramid
Research (www.pyr.com), the telecom research arm of the Light Reading
Europe's Five-Year IPTV Forecast: Mostly Cloudy, but Temperatures Slowly
Rising examines the short- to medium-term future of European IPTV in the
current economic climate. This 21-page report focuses on the three factors
affecting IPTV growth: the combination of the level of broadband penetration
and operators' capex, availability of affordable alternatives, and telcos'
strategies. Case studies of four markets, two CEE (Russia and the Czech
Republic) and two WE (France and Germany), are presented. Event-driven blogs
on the telecom market in Europe are also available on www.pyr.com, written by
analysts dedicated to the region.
Download an excerpt of this report here:
At year-end 2008, IPTV subscriptions accounted for only 8.2 percent of
total pay-TV accounts in Europe, generating more than US$3 billion (Euro 2.1
billion) or 8 percent of total regional pay-TV revenue, notes Stela Bokun,
analyst at Pyramid Research and author of the report. "Although Pyramid
projects that by 2014 IPTV will double its share of the total pay-TV market
with both subscriptions and revenue, Pyramid predicts the economic crisis
will have a negative impact on IPTV service adoption only in certain European
countries, while it will reduce revenue growth across the region within the
next 12 months," she says.
Telcos' capex cuts will affect IPTV only in countries with low broadband
penetration. "If the country had low broadband penetration pre-crisis, its
IPTV target market will stay at low levels during and immediately post-
crisis; one such example is Spain, which is currently seeing a slowdown in
IPTV adoption rates," say Bokun.
Although service quality and convenience play a significant role
when the economy is doing well, price plays a crucial role in the adoption of
any service. Customers are opting for more affordable offerings from other
pay-TV providers. "In Poland, TVN attracted new customers with its affordable
prepaid pay-TV service," says Bokun. "In fact, TVN is expected to achieve a
91 percent year-over-year growth for its IPTV subscriber pool in 2009, while
total Polish IPTV subscriptions will grow by 34 percent in the same year,"
she adds.
"If other pay-TV operators in their market are offering very cheap and
affordable plans, they should slash their own prices in times of crisis to
prevent the erosion of your IPTV subscriber pool," recommends Bokun.
"Creative and affordable bundled packages will be a way for telcos to
mitigate the adverse effects of the economic recession on IPTV service
adoption."
Europe's Five-Year IPTV Forecast: Mostly Cloudy, but Temperatures Slowly
Rising is part of Pyramid Research's Europe Telecom Insider report series.
Telecom Insiders are packed with trend analysis, industry best practices,
market sizing and forecasting, competitor analysis, and case studies,
providing you information you can leverage to make better business decisions.
Download an excerpt of this report here:
This report is priced at $595 and can be purchased online here:
or by contacting Jeff Claudino via email at claudino@pyr.com or telephone at
+1-619-229-9940.
For more information about Pyramid Research's products and services,
please visit www.pyr.com or contact us at info@pyr.com.
About Pyramid Research
Pyramid Research (www.pyr.com) offers practical solutions to the complex
demands our clients face in the telecommunications, media and technology
industries. Our analysis is uniquely positioned at the intersection of
emerging markets, emerging technologies and emerging business models, powered
by the bottom-up methodology of our market forecasts for over 100 countries-a
distinction that has remained unmatched for more than 25 years. As the
telecom research arm of the Light Reading Communications Network, Pyramid
Research works with Heavy Reading, providing the communications industry's
most comprehensive market data, trusted research and insightful technology
analysis.
About Light Reading
online media, research, and focused event company serving the $3 trillion
worldwide communications market. Lightreading.com is the ultimate source for
technology and financial analysis of the communications industry, leading the
media sector in terms of traffic, content, and reputation. Light Reading's
research arms, Heavy Reading and Pyramid Research, provide the most
comprehensive communications research, market data, and technology analysis
in close to 100 markets around the world. Light Reading produces nearly 20
targeted communications events including TelcoTV, Ethernet Expo New York and
Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as
focused one-day events tailored for cable, mobile, and wireline executives.
Light Reading was acquired by United Business Media in August 2005 and
operates as a unit of TechWeb.
About TechWeb
technology media, is an innovative business focused on serving the needs of
technology decision-makers and marketers worldwide. TechWeb produces the most
respected and consumed media brands in the business technology market. Today,
more than 13.3 million* business technology professionals actively engage in
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2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network,
Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and
The Financial Technology Network; and the market leading, award-winning
InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street &
Technology magazines. TechWeb also provides end-to-end services including
next-generation performance marketing, integrated media, research, and
analyst services. TechWeb is a division of United Business Media, a global
provider of news distribution and specialist information services with a
market capitalization of more than $2.5 billion.
*13.3 million business decision-makers: based on number of monthly
connections
About United Business Media Limited
UBM (UBM.L) focuses on two principal activities: worldwide information
distribution, targeting and monitoring; and, the development and monetization
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Press contact:
Jennifer Baker
+1 617 871-1910
jbaker@pyr.com
SOURCE: Pyramid Research
CONTACT: Jennifer Baker of Pyramid Research
+1-617-871-1910
jbaker@pyr.com
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