More than 5 million IPTV customers in Germany in 2013

Prediction: Growth on the IPTV Market Stronger than Expected

The market for TV via Internet (IPTV) in Germany will grow more strongly over the coming five years than previously predicted. According to a study by the management consulting company Detecon International, the sector can expect the 5-million-user threshold to be crossed as early as 2013.

IPTV Subscriber Volume Germany (in Mio) 2009-2013:

                   2009  2010  2011  2012  2013
                   ----  ----  ----  ----  ----
Market Potential   1.05  1.62  2.50  3.73  5.42

Source: Detecon, February 2009

The Detecon prediction is based on current analyses of the subscriber figures for the most important German and foreign IPTV providers. “It is foreseeable that the market volume for IPTV in Germany will follow the trend of countries such as France and Italy,” declares Thomas Grota, Managing Consultant at Detecon. Ultimately, the German market is not fundamentally different from international markets, even though the comparatively large amount of free TV programming and relatively high mandatory television and radio charges in this country give some of the potential IPTV customers cause to hesitate.

One reason for the predicted growth is that the German IPTV providers have readjusted their business models by adding integrated and flexible products and emphasized more strongly the features of IPTV which set the service apart from classic broadcasting and the Web-to-peer or peer-to-peer TV programming which is also Internet based. “So many users are convinced above all by the exclusive content, services such as video on demand, and technical features like time shift and HDTV. HD capability in particular is possible only with IPTV, but not with Web TV,” explains Grota.

Opportunity for a new medium

Over the next few years, according to Detecon, it can be assumed that IPTV providers who have previously above all purchased content and bundled it into programming will become increasingly active in the production of their own programming. “Web 2.0 leads the way for future development: passive viewers turn into active users who put together their own customized programming packages, publish content they have produced themselves on the Internet, and communicate extensively with like-minded peers. This is driving the quantity of Internet products, but above all through video streaming the data traffic as well, into the stratosphere,” explains Thomas Grota. IPTV providers should therefore pay strict attention to the further development of their infrastructures and the interactive aspects on their own platforms, making efficient use of their greatest advantage, the direct access to a large clientele. “If it is consistently developed further and designed to be user friendly, personalized television opens up opportunities for a new medium which can change the lean-back attitude of many users into lean-forward behavior through services such as e-mail, content sharing, video on demand, polling, or gaming.”