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Interactive Services Key to Early IPTV Success in the U.S.

Consumers Interested in Interactive Services Are Most Receptive to Advanced TV Services

Consumers interested in interactive services such as advertising, gaming, and voting on game shows, who total 27% of all U.S. households, represent a lucrative early market for IPTV services and applications, according to Parks Associates' "IP Video Services: Analysis and Forecast."

This segment, identified in Parks Associates' multinational study "Global Digital Living(TM)," is highly receptive to advanced TV services. Service providers, particularly telecom operators, could boost current revenues on their quad-play service packages, which include voice, data, video and wireless, by 33% by garnishing the bundle with services such as video-on-demand, as well as home monitoring, gaming and wireless broadband. This percentage increase would add $1.81 billion in revenues over the basic quad-play package.

"The market for interactive services is very promising in the U.S.," said Deepa Iyer, a research analyst at Parks Associates. "Telecom operators have a great opportunity to create new revenue streams by developing and deploying services catered toward this specific market."

As they increase their service offerings, telecom operators could also draw revenue from targeted advertising, according to "IP Video Services: Analysis and Forecast." The IP network allows real-time customer measurement, so telecom operators can build targeted advertising pieces into their bundle of services and increase customer ARPU. To realize these new possibilities, telecom operators will have to form strong partnerships with network, software, and other solutions providers to ensure the proper service infrastructure.

"It is all about experience in this market," Iyer said. "If telecom operators want to venture into the video market, they have to do away with their 'traditional fixed-line provider' image and offer services that really excite consumers. It is through this strategy that telecom operators can build strong customer loyalty."

"IP Video Services: Analysis and Forecasts" provides an analysis of the drivers, inhibitors, and opportunities for IPTV services. It provides overviews of the major players along the IPTV value chain and delivers a country-by-country analysis of the consumer demand for advanced TV services.

The "Global Digital Living(TM)" project is a study of worldwide consumer technology trends and surveyed Internet households in thirteen nations: France, Italy, Spain, Germany, Canada, Taiwan, Japan, India, China, South Korea, Australia, the United Kingdom, and the United States.

For additional information on "IP Video Services: Analysis and Forecasts" or "Global Digital Living(TM)," visit http://www.parksassociates.com or contact 972-490-1113 or sales@parksassociates.com.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions. Parks Associates also hosts Fall Focus and co-hosts CONNECTIONS(TM) (in partnership with the Consumer Electronics Association) each year. www.parksassociates.com

Distributed by Market Wire