IPTV to Drive VoD Business Models, According to Pyramid Research

Business Wire, June 28, 2007

CAMBRIDGE, Mass. -- IPTV operators are in a strong position to drive the evolution of VoD business models, according to a newly released study by Pyramid Research. As the latest entrants to the pay-TV market, IPTV operators are pursuing the VoD opportunity aggressively and are increasingly banking on VoD to enhance the TV experience.

"In many markets, IPTV players are first movers with on-demand services; they get to determine how to position, package, and price these services," commented report author Ozgur Aytar. The IPTV study highlights some aggressive telco moves to build unique, rich VoD platforms--from France Telecom co-producing movies and Telefonica's VoD offerings built around exclusive soccer content, to the creation of multiplatform on-demand services. "The holy grail for IPTV operators is to transform TV viewing into a more Internet-like experience, wherein programming flows through the VoD platform, giving consumers ultimate control over their content consumption. That's where the money is," said Aytar.

Pyramid Research sees VoD as more than a mere vehicle for customer retention. The company expects VoD to become a key part of telco transformation over the next 3-5 years as telcos build multiplatform content businesses. Worldwide revenues from VoD transactions over IPTV platforms are expected to grow from $121m in 2006 to $4.7bn in 2012, or 18% of overall IPTV revenues.

Pyramid Research's new research study Can VOD Save IPTV? VoD Economics, Global Forecasts, and the Case for IPTV VoD examines the VoD business model for IPTV operators, analyzing its value proposition, investment requirements, content dynamics, and overall market opportunity. For more information on how to obtain this report, visit the Pyramid Research website at: http://www.pyramidresearch.com/store/rp_Can-Vod-Save-IPTV.htm?sc=prbw

About Pyramid Research

For 20 years, Pyramid Research has helped companies in the converging communications, media, and technology industries stay ahead of market trends, understand competitive threats, and capitalize on opportunities. We advise the world's leading vendors, service providers, and equipment manufacturers as well as the financial community on how to implement best practices, build offensive growth strategies, and drive profitability.