IPTV Technology Set To Take Flight

Although some VARs have viewed the home-entertainment market as outside their sphere, they may want to take another look.

According to a new report by Infonetics Research, worldwide IPTV subscribers will number 53 million by 2009, and service providers are investing rapidly increasing amounts in IPTV content and transport equipment in anticipation of the boom. By 2009, worldwide IPTV equipment revenue will reach $6 billion (today it's $400 million) and service revenue will jump to $38 billion. The number of IPTV subscribers in North America will increase more than 40 times between 2005 and 2009.

Although broadband service providers account for most of IPTV service revenue now, cable broadband providers will enter the market in the next few years, while also offering wireless services.

Jeff Heynen, directing analyst for IPTV at Infonetics, says broadband providers are currently focusing on upgrading their infrastructures by adding bandwidth and routers. During the next several years, they'll shift toward content infrastructure, and buy video-on-demand servers, encoders, content-security platforms and other equipment.

Among the vendors seeking to capitalize on the trend is Helius, which recently announced MediaLock for IPTV, a software-based encryption solution for IPTV network operators. All of this spells considerable opportunity for solution providers that want to expand into the SOHO market.