A study forecasts the number of subscribers to Internet protocol TV (IPTV) will surpass one million by 2007. IPTV is a two-way multimedia service that allows viewers to watch broadcasts and movies through high speed Internet, providing interactive services like TV commerce and TV education. IPTV is expected to grow at a brisk pace in the coming few years, as broadband is now available to more than 100 million households worldwide. Many of the world’s major telecommunications providers are exploring IPTV as a new revenue opportunity for their markets.
The LG Economic Research Institute said in a report entitled “IPTV Spearheads a New Broadcasting Market” that if communication companies actively promote IPTV, more than two million people would subscribe to the new service by 2009. It expects the number of subscribers to grow from 80,000 this year to 520,000 in 2006, 1.26 million in 2007 and 2.01 million in 2009. LG said consumers would experience “a new media environment.”
IPTV is tipped to change the structure of the broadcasting industry and broadcasting consumption, since communicators and broadcasters will compete directly and viewers will enjoy more diverse video content, providing a boost to content providers. Televisions will have a built-in computer and video recorder. KT and Hanaro telecom are preparing to offer the IPTV service as part of their Triple Play service, an integrated Internet, telephone and TV service targeting 12 million Internet subscribers.
The institute said IPTV would affect various industries as it would tear down the boundary between telecommunication and broadcasting industries, diversify two-way services and stimulate development in the electronic home appliance industry.
