US IPTV Market Forecast to Hit 15.5 Million Subs by 2013

$15 Billion in Service Revenues by 2013

BOSTON — The US IPTV market will grow from over 5 million subscribers in 2009 to 15.5 million by 2013, according to a report just published by analyst firm Strategy Analytics. While IPTV holds less than a 5% share of total television households in 2009, the percentage will approach 13% in 2013.

The entrance of the Telcos into the television game has created new and significant competition for the traditional pay television platforms, according to the report. Strategy Analytics believes that, despite recently announced deployment deceleration by companies such as AT&T, IPTV will nonetheless become an important platform in the pay television landscape.

AT&T announced on a recent earnings call that it had pushed back its 30 million “Living Units Passed” (homes passed) goal from 2010 to 2011, citing the difficult economic environment.

“Crucial to the ultimate success or failure of IPTV in the US will be adequate customer uptake and demand,” noted Ben Piper, Director of the Strategy Analytics Multiplay Market Dynamics service. “To date, the Telcos have done an insufficient job of articulating the IPTV value proposition to the customer.”

The report, “United States IPTV Market Sizing: 2009-2013,” provides revenue and subscriber forecasts for 2009-2013, and includes analysis of IPTV inhibitors and drivers, forecast sensitivity analysis, and strategic recommendations.