Study: IPTV will only be profitable in three years

More than 300 telecommunications companies are currently working on IPTV, television via the Internet. Rapid growth in broadband connections and sales is expected. A new study by Accenture is now available. Together with the Economist business magazine, 302 decision-makers in the media and technology industry worldwide were surveyed in spring 2006. The results According to the study, providers do not expect significant sales for around three years. Because high investments have to be made in infrastructure, technology and content, IPTV is expected to come onto the market as a package with other media offerings. Triple play is one of the key words here: the combination of television, telephony and broadband Internet. Providers see video-on-demand as the biggest revenue generator. The network operators among the providers in particular hope that this will increase customer loyalty (22%) and increase the number of broadband connections (31%). 85% assume that low-cost package solutions will determine whether customers can be won over to the new service. "Television via the Internet poses major challenges for telecommunications, media and electronics companies," says Dr. Nikolaus Mohr, Managing Director Communications & High Tech at Accenture. "Ultimately, the successful companies will be those that are the first to develop a profitable business model. The provision of high-quality content, the delivery of the best quality and excellent customer service are the factors for success." Further information on the study: www.accenture.com/iptvmonitor1