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IPTV Use Expected To Soar

The number of subscribers to Internet television worldwide is expected to increase twelve fold by 2010, bringing with it a host of new services for consumers, a market research firm said Thursday.

The number of IPTV subscribers is expected to increase at a compound annual growth rate of 92.1 percent to 63.1 million in 2010 from 2.4 million last year, iSuppli Corp. said. The number of subscribers is expected to reach 5.3 million this year.

"The fight to capture the expanding base of IPTV subscribers will put telecom operators on a collision course with existing pay-TV market competitors and with a new class of broadband video portals as they roll-out progressively more sophisticated offerings," Mark Kirstein, vice president, multimedia content and services for iSuppli, said in a statement.

The IPTV subscriber base is expected to generate more than $27 billion in overall services revenue in 2010. Video services are expected to make up the bulk of the revenues, with value-added media services and IPTV operator advertising accounting for more than 14 percent.

In addition, content licensing revenues across all IPTV services are expected to reach $11 billion at the end of the forecast.

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