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IPTV operators in Europe face Arpu challenges

Indiantelevision.com Team

(12 November 2007 8:00 pm)

MUMBAI: Although IPTV subscriptions in Europe are expected to grow to more than 25 million by 2011, research from Parks Associates finds that operators are ARPU-challenged and face strong competition.

A study IPTV in Europe: Digital TV in a Hyper-competitive Market finds that telephone operators are facing growing competition from cable, satellite and digital terrestrial services and their own telco brethren that are taking advantage of local loop unbundling regulations.

Parks Associates VP, principal analyst Kurt Scherf says, "Europe is certainly a laboratory in real market time of how competition among service providers is constantly forcing operators to constantly evaluate their entire broadband and bundled services strategies.

"Given the need to differentiate their services and add real value back to their companies, the European IPTV landscape is characterized by a careful balance between competitive pricing and value-added features."

Europe provides an example of what the US may experience given the entry of major telcos into the multichannel video space. He points to such applications as managed home networks, an emphasis on converged communications applications, and a rise in interactive television as three key areas of interest to watch in not only Europe but the rest of the world.