IPTV set for boom time in Europe as convergence finally becomes a reality – by 2009 IPTV will account for almost ten per cent of the European pay TV m

Screendigest: The number of IPTV subscribers in Europe is poised to increase to 8.7 million by 2009, up from just 658,000 today. The number of IPTV subscribers in Europe has increased 66 per cent so far this year and with more services about to launch, 2005 is projected to see a 200 per cent increase on 2004 figures. IPTV is set to mount a significant challenge to the established satellite and cable operators in Europe. By 2009, IPTV will have a 9.4 per cent share of the European pay TV market. The impact of IPTV on local pay TV markets will be strongest in France, Italy and Spain. By 2009 IPTV will have a 20 per cent share of the pay TV market in Italy, 17 per cent in France and 16 per cent in Spain. The potential benefactors are Europe's traditional telecoms businesses, which are hoping this technology will herald a new era of profitability, following the steady erosion of their traditional fixed line business. Although some technical and content issues have yet to be resolved, the combination of compelling, competitively priced triple-play offers that include true video-on-demand will prove a winning formula. Many traditional pay television providers are finding that they too must adopt IPTV technologies in order to remain competitive . The most successful IPTV operator is Italy's Fastweb followed by two French telcos in Free Telecom and France Telecom, with 190,000, 130,000 and 116,000 customers respectively. France's three major network operators France Telecom, Free Telecom and Neuf Telecom boast 281,000 customers between them, making France the leading IPTV market in Europe. Italy has 190,000 and in Spain there are 57,500 subscribers. Despite being Europe's oldest IPTV market the UK has yet to become a significant player and had only 30,000 subscribers in mid 2005. This represents 0.08 per cent of TV households compared to satellite penetration of nearly 30 per cent, cable penetration of nearly 13 per cent, and DTT penetration of 20 per cent. The majority of the UK's subscribers are accounted for by Homechoice which has battled for subscribers since it was launched in one of Europe's most competitive pay TV markets. Despite recent subscriber growth Video Networks is facing the prospect of increased competition. BT's Freeview Plus hybrid IPTV/DTT service is due to launch commercially in summer 2006 and more ISPs are expected to start IPTV in the near future. In the near term Homechoice's biggest competitors are the cable operators which can also offer triple play services and video-on-demand European IPTV: Market assessment and forecast, Triple play? Wikipedia Red Viking Publ. 20051121