March 14, 2008

The number of households worldwide using telco/IPTV services grew from 4.7 million in 2006 to exceed 14 million in 2007, according to TV Services in Europe: Update and Outlook by Parks Associates.

The white paper analyzes key television services and offers growth strategies and recommendations for providers worldwide and for Europe in particular. Europe experienced a growth rate of 250% between 2006 and 2007 for telco/IPTV services, defined as landline-based multichannel and on-demand video services provided by a telephone operator

"Telco/IPTV services provide European operators with a critical toehold in attracting and retaining customers," said Kurt Scherf, vice president and principal analyst, Parks Associates. "However, IPTV is a small part of a crowded market of terrestrial, satellite, and cable offerings, and the competition will be intense."

A key recommendation from the paper is that operators should examine network and customer premise equipment upgrades for features and applications that can personalize the entire television experience and build customer loyalty.

“Service providers must view advanced technology capabilities on two levels," Scherf said. "There is certainly a cost-savings perspective, but we would encourage service providers to also view customers as active participants in the convergence of entertainment and communications."

For more information at http://www.parksassociates.com/tvservices>

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