Tuesday, February 6, 2007

Accenture: IPTV on the Rise

Accenture has released its third IPTV bulletin available at:


This issue contains the results of a survey that focuses on the level of confidence in IPTV services. The study makes two key conclusions:
  • Confidence is strong that IPTV will generate significant revenue within three years. Confidence in shorter term revenue prospects are lower, but on the rise.
  • Network operators expect content to generate the lion's share of revenue. Other industry players believe that advertising will be the leading revenue generator.
This study (as well as Accenture's previous IPTV studies) is well worth reading. The conclusions appear reasonable to us. Most network operators are in a ramp up phase, so they are building a subscriber base that will generate significant revenues. In fact, advertising revenues are not likely to be significant until their subscriber base reaches critical mass. Consequently, content revenue will dominate in the early years.

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