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IPTV Will Take Off, Says Study

As cable companies continue to take a bite out of telcos' voice business, those companies will be returning the favor by ramping up their IPTV business in a big way.

That's according to a new report from Tech support company iSupply Research, which says that the IPTV market will go from $779.2 million in 2006 to a projected $26.3 billion by 2011, with revenues of more than a billion.

That's a giant leap for IPTV, but still only a small step toward cable's dominant position in the mulitchannel video market. For example, the report points out, Comcast in 2005 had $26 billion in pro forma cable revenue. Isupply says it is unlikely that the entire IPTV market will be as big in 2011 as Comcast  alone.

IPTV will be much more than video, says the report, with growth areas in music, gaming, data, home security and more. That range of new services would be a way to compensate for the decline in plain old telephone service, the study suggests, and to capture some of the revenue others are making by delivering their services down the telco's broadband pipe.