Analysis of the IPTV Markets in Central and Eastern Europe

Frost & Sullivan, March 2011, Pages: 53

This Frost & Sullivan research service titled Analysis of the IPTV Markets in Central and Eastern Europe provides an analysis of the Internet protocol TV (IPTV) markets in Bulgaria, the Czech Republic, Hungary, Poland and Romania, The study highlights the market trends and provides forecasts.

Market Overview

Value-added Services Enhance IPTV Market Potential in Central and Eastern Europe

IPTV Subscribers to Grow to 1.5 million by the End of 2017 in CEE

With the telecom and pay TV markets approaching maturity, participants in the IPTV markets in Central and Eastern Europe (CEE) are finding it challenging to acquire new clients and retain the current customer base. It is imperative for both telecom and pay TV participants in CEE to implement bundled services. Initially, bundled services composed of broadband, TV and voice services were the domain of cable TV operators. Telecoms and ISPs quickly realised that to successfully compete in the market, deployment of TV services is essential. “Currently, the highest number of IPTV subscribers as well as the highest penetration of the services is in the Czech Republic, where around 5 percent of the households use IPTV services,“ notes the analyst of this research service. “The Czech Republic is likely to dominate the IPTV market in the foreseeable future.”

Bulgaria and Romania remain the least developed IPTV markets, characterised by very high penetration of pay TV and relatively low penetration of broadband. Apart from growing interest of the main telecom market participants, the market is likely to be stimulated by increasing broadband penetration in fibre to the building (FTTB) technology. IPTV growth in CEE will be relatively stable, driven by both ARPU and subscriber base increases. However, revenues from IPTV services are likely to remain a small part of total telecoms revenues in the short and medium terms. In the long term, the market participants can count on much higher incomes from upsale of the premium content and value-added services.

Currently, the most important challenge for IPTV operators is competition with other pay TV providers. Established pay TV operators, with strong market knowledge and experience have the edge over new IPTV providers. Limited coverage of the relevant infrastructure for high-quality services provision also restrains growth. Often the capacity of digital subscriber line (DSL) networks do not allow for transfer of both broadband and IPTV. Upgrading DSL networks in many cases is not economically justified; therefore, in the next 3 to 4 years, IPTV is likely to be deployed on FTTH/B and cable infrastructure.

Going forward, IPTV is likely to become a target technology not only for telecom operators and ISPs but also for cable TV providers. IPTV is a natural technology path for telcos and ISPs. However, cable TV operators are starting to use the technology for television services provision. “In Poland some of the cable TV operators are already providing video on demand (VoD) services via Eurodosics,” says the analyst. “Also, Magyar Telekom, Hungarian incumbent announced that it will introduce the IPTV service on a cable television network using EuroDOCSIS 3.0 technology.” To succeed in the pay TV market, IPTV providers must differentiate their offerings in terms of quality, content, additional services and adjusted pricing models. A prominent market stimulus will be also changing TV consumption. TV services must be embedded in all CEE telecoms offers to compete with pay TV providers on the triple play market. However, in the short and medium terms, IPTV is unlikely to be the only technology deployed. Many incumbents are expected to focus on satellite TV development, especially in the rural areas. In consequence, in the short term, IPTV in CEE is unlikely to expand beyond market niche.

1. Introduction

2. Executive Summary

3. Analysis of the Key IPTV Markets in Central and Eastern Europe
- 3.1 PESTLE Analysis
- 3.2 Regulatory Environment
- 3.3 IPTV Market Trends
- 3.4 Industry Challenges
- 3.5 Market Drivers and Restraints
- 3.6 Total IPTV Subscribers in CEE and the Revenue Forecasts
- 3.7 Analysis of the Broadband and Pay-TV Markets Impact on IPTV Market Development

4. IPTV Market Overview: Bulgaria

5. IPTV Market Overview: The Czech Republic

6. IPTV Market Overview: Hungary

7. IPTV Market Overview: Poland

8. IPTV Market Overview: Romania

9. Competitive Environment
- 9.1 Competitive Forces in the IPTV Market in CEE

10. Conclusions and Recommendations

11. Appendix

12. About Frost & Sullivan

List of Charts

IPTV Market: Household Penetration (CEE), 2007-2017
IPTV Market: Number of Subscribers (CEE), 2010
IPTV Market: Revenue Forecasts (CEE), 2007-2017
IPTV Market: Total Subscribers (CEE), 2007-2017
IPTV Market: Revenue Forecasts (CEE), 2007-2017
IPTV Market: IPTV Household Penetration versus Broadband Household Penetration (CEE), 2010
IPTV Market: IPTV Household Penetration versus pay-TV Household Penetration (CEE), 2010
IPTV Market: Number of Subscribers and Household Penetration (Bulgaria), 2007-2017
IPTV Market: Revenue Forecasts (Bulgaria), 2007-2017
IPTV Market: Market Shares by Number of Subscribers (Bulgaria), 2010
IPTV Market: Monthly Average Revenue per User (Bulgaria), 2007-2017
IPTV Market: Number of Subscribers and Household Penetration (The Czech Republic), 2007-2017
IPTV Market: Revenue Forecasts (The Czech Republic), 2007-2017
IPTV Market: Market Shares by Number of Subscribers (The Czech Republic), 2010
IPTV Market: Monthly Average Revenue per User (The Czech Republic), 2007-2017
IPTV Market: Number of Subscribers and Household Penetration (Hungary), 2007-2017
IPTV Market: Revenue Forecasts (Hungary), 2007-2017
IPTV Market: Market Shares by Number of Subscribers (Hungary), 2010
IPTV Market: Monthly Average Revenue per User (Hungary), 2007-2017
IPTV Market: Number of Subscribers and Household Penetration (Poland), 2007-2017
IPTV Market: Revenue Forecasts (Poland), 2007-2017
IPTV Market: Market Shares by Number of Subscribers (Poland), 2010
IPTV Market: Monthly Average Revenue per User (Poland), 2007-2017
IPTV Market: Number of Subscribers and Household Penetration (Romania), 2007-2017
IPTV Market: Revenue Forecasts (Romania), 2007-2017
IPTV Market: Market Shares by Number of Subscribers (Romania), 2010
IPTV Market: Monthly Average Revenue per User (Romania), 2007-2017
IPTV Market: Number of Telefonicas IPTV Subscribers (The Czech Republic), 2007-2010
IPTV Market: Number of TPSAs Satellite and IPTV Subscribers (Poland), 2007-2010
IPTV Market: Number of Magyar Telekoms Satellite, Cable and IPTV Subscribers (Hungary), 2007-2010
IPTV Market: Number of Romtelecoms IPTV and Satellite TV Subscribers (Romania), 2007-2010

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