Sign in Subscribe
Software industry

Internet TV vs. Pay-TV: A Shift in Consumer Preferences

Strategic Insights

— 1 min read

The rise of internet TV, also known as streaming video services, threatens to disrupt the traditional pay-TV industry. Parks Associates predicts that the worldwide market for telco IPTV services will exceed 100 million households by 2013, with a compound annual growth rate (CAGR) of approximately 38%. Microsoft is poised to benefit from this trend, with its global reach and expertise in software making it a key player in delivering next-generation television services. Meanwhile, cable companies are fighting back with interactive technologies such as true2way.

Key Takeaways:

  • The worldwide market for telco IPTV services is expected to reach 100 million households by 2013, with a CAGR of 38%.
  • Microsoft is strategically positioned to benefit from the growth of IPTV, with its global reach and expertise in software.
  • Cable companies are responding to the threat of IPTV with interactive technologies such as true2way.
  • The rise of internet TV is driven by two trends: the increasing availability of TV shows and movies online, and the emergence of technology that allows viewers to connect their TV sets to the internet.
  • Major TV manufacturers such as LG, Samsung, Sony, and Panasonic are introducing TV sets with digital media adapter technology, allowing users to access online video services directly from their TV.
  • Sony has a deal with Universal Pictures to offer 1,300 movies and 4,500 TV episodes on its online service, which can be viewed on connected TV sets.

Statistics:

  • 100 million: The number of households worldwide that are expected to subscribe to telco IPTV services by 2013.
  • 38%: The compound annual growth rate (CAGR) of the worldwide telco IPTV market.
  • 1,300: The number of Universal Pictures movies available on Sony's online service.
  • 4,500: The number of NBCU TV episodes available on Sony's online service.
  • 12,000: The number of movies available on Netflix, which can be viewed on Sony's PS3.

Sources:

  • "Internet TV to Overtake Pay-TV, Parks Associates Says" by Janko Roettgers, GigaOM (no date)
  • "Europe to have over 38 million households with telco IPTV services by 2013" by Kurt Scherf, VP and principal analyst at Parks Associates
  • "Sony to offer 1300 Universal Pictures movies and 4500 NBCU TV episodes on PS3" by Sony press release (no date)
  • "UK report: consumers will get TV content online or else", The Guardian (no date)
  • "LG, Samsung, Sony and Panasonic to include digital media adapters in new TVs" by Yahoo! News (no date)

Read more