The hotel and multi-dwelling unit markets (such as apartments and condos) will provide “a significant shot in the arm” to the IPTV market, particularly in a down economy, says a new research reports from In-Stat.
In addition to providing growth opportunities to service providers serving high density environments, IPTV could serve as a key differentiator for properties that make it available. The report predicts that IPTV services to high density deployments such as apartments will exceed $6 billion worldwide by 2013.
The hotel market is more difficult in the short term as the economic downturn makes securing the capital necessary to support deployments more challenging than in the multi-dwelling unit (MDU) segment. With bookings and revenues down, hotels may be less willing to finance network upgrades to support IPTV in the near term, the report continued.
“Deploying IPTV in the MDU market is a ‘no brainer’ for service providers,” says Amy Cravens, In-Stat analyst. “Deploying IPTV in high density environments offers significant cost savings compared to single-family housing markets. In this economy, services providers are looking to maximize the return for every infrastructure investment dollar, and MDU deployments provide just that.”
The report, called ‘High Density IPTV: IP-Based Video in Hotels and MDUs Worldwide’, also found that:
– Nearly 70% of MDU IPTV in the US will be deployed with Fibre to the Home (FTTH).
– The slump in single-family housing is prompting providers to shift their interest to the MDU market.
– Regionally, Asia-Pacific is the largest opportunity for subscriber growth in the MDU market.
– While the MDU market offers significant advantages for the provider after securing access to the building, negotiating entry can be difficult.
– Competitors BNS, Guest-Tek, iBAHN, LodgeNet, and Verizon are among those targeting the hospitality and MDU market for IPTV.
For more information on the report, click here.
