The shift from MPEG-2 to MPEG-4 encoding and headend purchases is expected to begin in volume in the 2007 to 2008, meaning prolonged life for MPEG2 in IP TV systems. Moreover, the rise of IPTV content subscribers will drive an equally rapid installed based of IPTV video headends, according to a new report by Multimedia Research Group. Broadband service providers in the U.S., Asia, and Europe have announced or plan to announce deployments of IPTV-based content services, opening up opportunities for all video headend suppliers.

The new report, IPTV Video Headend Global Forecast 2005 - 2008, provides a macro view of the IP TV headend sector. It analyzes and identifies which service providers are leading the push towards IP TV services; where each region stands in the race to IPTV; and how fast subscriptions will grow for IPTV and DSL-based services worldwide. One key forecast is that IPTV subscriber revenue will grow from about $400 million in 2004 to over $6 billion in 2008, meaning a substantial investment in content and infrastructure is fast approaching.

Whether for SBC, Verizon, or BellSouth in the U.S., China Telecom in Asia, or France Telecom or Telefonica in Europe, IPTV video headend suppliers must help service providers compete in increasingly competitive markets."IPTV vendors, in addition to offering unique and innovative services, have to use new technologies to achieve competitive advantages," stated Gary Schultz, MRG principal analyst."Yet the end-to-end value chain needs to remain price-sensitive to new adopters."

The report shows how growth rates for IPTV subscriptions, installed headends, and revenues must anticipate the availability and deployment of new chip-sets like MPEG-4 decoders, as well as dual (MPEG-2/MPEG-4) decoders. It also contains subscriber, installed headend and revenue projections for the following markets: IPTV subscribers and revenue, DSL subscribers, MPEG-2 encoders, SD MPEG-4 encoders, and HD MPEG-4 encoders.

IPTV Video Headend Global Forecast 2005 - 2008 is available for $4,495.00 US for a departmental license (PDF format), and $3,995.00 U.S. for a printed (hard copy) version. For a corporate license, contact MRG. This 90-page report can be ordered by contacting Rob Smith at 408-524-9767 or info@mrgco.com, or by visiting http://www.mrgco.com.