IPTV undergoes a paradigm shift

The global internet protocol television (IPTV) market was valued at USD 40.85 billion in 2019 and is expected to reach USD 104.25 billion by 2025, at a CAGR of 16.9 percent over the forecast period 2020–2025, according to ResearchAndMarkets.com. The market is going through a paradigm shift from traditional modes of broadcasting like cable or satellite TV toward internet-based streaming, and IPTV as a system has a significant role to play in this transitional phase. With improved communication technology and advancements in the network architecture, these developments have also served the market affirmatively.

Technological developments have led to an increase in the number of subscribers for IPTV, and there is a need for HD channels and video-on-demand (VoD). Subscription numbers are also growing owing to new market expansion. Increasing penetration of internet-based streaming services is expected to drive the market. Companies are offering complex deliverables in combination with OTT, video calling/conferencing, smart home, and video-games. Such lucrative strategies adopted by companies are attracting clients, and the number of subscribers is increasing, driving the IPTV market growth.

Also, government initiatives in developing countries like India favoring digital television are fueling the adoption of IPTV. However, competition from local cable TV and satellite TV due to lower cost and lack of infrastructure for quality and jitter-free service, especially in developing and underdeveloped countries, is limiting IPTV adoption to an extent. Television service consumers demand better user experiences in terms of quality and on-the-go television experience. Also, with the inclusion of the trend for live streaming, internet usage increases and internet penetration plays a vital role. The internet penetration rate reached 57 percent by the end of 2019. The North American region leads with 95 percent, whereas the highest number of internet users is more in the Asia-Pacific (APAC) region, followed by Europe. The difference between internet users in these countries is as large as 1300 million users. Moreover, affordable internet data is available, resulting in consumers demanding high-quality television experiences, driving the growth of the IPTV market.

Rising investment in content has led to the creation of new content offering, which is beyond Hollywood. Increasingly, India is becoming one of the content hubs, with a wealth of material being created for consumption locally and around the world. Also, the growth of smartphone users in the region since 2010 has fueled the demand for IPTV services in mobile devices. Moreover, Indian government’s initiatives toward digital transformation, such as digitization of cable TV and direct-to-home (DTH) services, are also favoring the adoption of IPTV in the country. The advent of network service providers has changed the IPTV scenario in India.