IPTV, or Internet Protocol Television is exactly what it sounds like—TV services delivered via private network to users through the internet, instead of through traditional radio frequency broadcasts, cable TV formats, or satellite signals.
These services tend to be broadly divided into three categories, namely live TV shows, repeat telecasts, and VoD wherein users can select and demand specific shows from a directory.
It’s been a cushy few years for vendors in the Global IPTV Market. Market revenue grew by 16.14 percent in 2014 over the previous year, and this growth is expected to continue steadily through 2019, with the market posting a CAGR of 20.32 percent during the forecast period.
APAC Region Driving Market Growth
The APAC region is by far the biggest IPTV consumer, with a 49.41 percent share of the total subscriber base (just over 45 million subscribers) in 2014. By 2019, this number is supposed to swell to a 56.74 percent share, totaling about 80.81 million subscribers.
China, Japan, and South Korea accounted for nearly half of the market in 2014. Installation costs—one of the main barriers in the American market—are relatively low in the APAC region, which is facilitating faster adoption, and encouraging customers to get on the IPTV bandwagon.
On top of that, operators in this region are actively promoting their services to increase awareness among customer, and significant penetration of broadband infrastructure and connectivity is also going a long way towards promoting IPTV adoption throughout the APAC region.
While the outlook for IPTV is good, there are still some barriers that, while not entirely catastrophic, will certainly be a thorn in the side (and the profits) for market vendors over the projected period.
Lack of Broadband Infrastructure
IPTV services require consistent, high-speed internet access. Anyone who has ever struggled through a YouTube video with a spotty connection knows the frustration the word ‘buffering’ can elicit. So good broadband infrastructure is key to the success of the IPTV market. It’s also one of the reasons this technology is struggling to take off in areas like Latin America and the Middle East—in a lot of cases, the internet connection is just not fast enough in these areas to properly support streaming services like IPTV, which is making is difficult for vendors to expand and break into these markets.
Growing Popularity of Free Internet TV Services
Why pay for it if you can get it for free? This is the mentality that a lot of internet-savvy consumers are taking, especially when it comes watching their favorite shows. Both legal and illegal free streaming services are plentiful, forcing vendors in the Global IPTV Market to make a really solid case for their services. In a lot of instances, vendors are really working to offer extra features and customizations to attract more paying customers.
