An Accenture analysis carried out in partnership with the Economist Intelligence Unit shows that, of the 350 executives of telecommunications companies, television operators and media surveyed, more than half (60 percent) believe that IPTV could generate «significant revenues in the first three years of service «.
The study was carried out in 46 countries – Portugal was not included – and showed that, in general, the industry relies on the potential of IP television over the long term. However, in the short term, estimates remain divided: 52 percent of respondents are not optimistic about IPTV’s capabilities as a source of revenue over the next 12 months, 20 percent are «confident or very confident» and 28 percent are » quite confident «.
The different experiences of the executives, depending on the area in which they operate, proved to be decisive when it came to responding, namely with regard to the sustainability of the business and the quality of the offer.
In this field, just over 45 percent of respondents revealed that advertising would be the main source of revenue for the next generation of TV. On the other hand, 74 percent of network operators, where this includes equipment manufacturers, consumer electronics companies, content providers and broadcasters / studios, believe that subscription fees for Premium content will account for the majority of revenues, followed by payments for basic packages and advertising fees.
Service operators believe that IPTV will be «comparable or better than current video offers», while media executives are more skeptical and cautious in their responses.
The discrepancy of opinions is justified by Paulo Vicente, Vice President of Accenture in Portugal for the area of ​​Communication and Media, as a reflection of the general uncertainty «about the format of distribution of content and about the amounts that consumers will be willing to pay. «.
The new revenue trends, the acquisition of new customers and the increase in the sale of broadband access connections are the reasons cited by executives as the main reasons for investing in IPTV. On the part of customers, the motivations for subscribing to this type of service should, in the opinion of the interviewees, be based on the «discount on prices through a service package», «the ability to move content between devices», as well as the advantages brought by «a single invoice for multiple services».
Regarding the obstacles to the adoption of IPTV, 25 percent of respondents said that «the main obstacle to the adoption of IPTV in the short term is the issue of quality of services related to unproven architectures, low bandwidth and other technological issues», as well such as «high subscription fees».
Despite the conclusions of the study point to a greater benefit for content providers to the detriment of traditional televisions, in terms of revenue generation, Paulo Vicente points out that «the IPTV business case, its benefits, its added value and the their potential remains strong «, making it necessary to be» visionary, ambitious and receptive to innovation «to» achieve high performance through IPTV «.
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