New research by Frost & Sullivan discusses the North American market for IPTV-based services and the set-top boxes required to deliver them to consumers. In addition to revenue and unit shipment forecasts for set-top boxes, it profiles major service providers and set-top box vendors. The study also reviews major strategic opportunities for success and analyzes market direction through consideration of challenges, drivers, and restraints that IPTV-based service providers and related vendors are expected to face in the near term. Strategic recommendations are also provided for vendors and service providers.

IPTV now promises to offer subscribers better value through personalized content, ease of use, as well as cross-device capability and portability. The key to success is customization, which includes content geared to a customers preferences based on an electronic programming guide and enhanced features such as manipulation of camera angles, explains the analyst of this research service. Most importantly, customers are looking for simple navigation, with a minimum number of clicks needed to reach content.

Both cable operators and telcos are expected to compete in the video services market based on service differentiation, which includes both content and user experience. In some instances, pricing may also be a deciding factor for consumers. They may also be interested in IPTV-based services if they feel that they are under served by their cable and satellite operators in terms of bandwidth, features, and customer service, says the analyst.

A valuable strategy for a successful IPTV-based telco offering would be to start simple, focusing on a better video experience at lower price points, and then upgrade to more added functionalities once it has an established customer base. In addition to local advertising revenues targeted at particular demographics and/or devices, service providers are augmenting profits by offering content beyond a monthly subscription fee or on pay-per-view basis. Although initially, not all services prove profitable and may have to be offered free of cost, other offerings such as HDTV, video on demand, and PVRs are expected to be strong revenue generators.

Analysts examine the following market sectors in this research:

By applications

• Consumer services
• Consumer broadband
• Residential CPE/end points

By technology

• IP
• IPTV
• Broadband

For more information visit http://www.researchandmarkets.com/reports/c50812