IPTV enables telecom operators to leverage their digital subscriber line access networks and customer base with an additional video service in order to stem losses and keep customers. While initially offering a service similar to that of cable and satellite, the real value of IPTV is in the enhanced services available with an IP network offering.

IPTV customization includes the ability to time-shift programs, VCR functionality, watch multiple programs and choose from on-demand content. Consumers have become accustomed to choice in service subscriptions, content and device. Consumers are increasingly adopting HDTV, pocket video recorder/digital voice recorder (PVR/DVR), and on-demand programming. As the 'iPod generation' expands, people are becoming accustomed to greater choice and the ability to search the Internet for content for viewing on the TV, personal computer or any other device.

However, in order to offer IPTV-based services, telecom operators must upgrade their networks, apply for local TV franchise licenses and then attract customers who already have cable-TV or DBS services. Generally, telecom operators are the new entrants in the market, attempting to shift customers away from incumbents with a differentiated offering.

"As a result, IPTV deployment is not always easy; in addition, there have been delays associated with set-top boxes and potential customers become disenchanted if announced services are not delivered," explains Starr. "There may also be capacity issues with the set-top boxes that do not have enough storage space for on-demand and DVR programming."

However, the desire for customization, along with value pricing and competition among providers, are expecting to spur the market for IPTV-based services. There is a significant demand for niche, older programming and educational programming. Programs from other countries are also attractive, for which consumers will pay. In turn, the service providers are likely to either charge subscription/viewing fees or sell targeted advertising, which will defray network deployment costs. Thus, IPTV offers consumers savings over cable services, which boosts demand.

IPTV-Personalizing Television: North American IPTV Services Market is part of the Communication Services Growth Partnership Service, and it provides insight into the market for IPTV services and set-top boxes as part of the residential broadband and customer premise equipment markets. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: broadband, consumer services, IPTV and residential CPE. Interviews with the press are available.