IPTV services can compete with the region’s saturated satellite TV market, according to a new report by Booz & Company.
The platform relies on the presence of broadband infrastructure being in place, narrowing its potential reach in a market where some countries have 94 percent satellite penetration.
“The broadband connection allows viewer commands enabling a high degree of interactivity,” said Hadi Raad, a senior associate at Booz & Company. “The unique IP- address for each user’s set-top box allows targeted advertising and other personalised services,” he added.
The report predicts that a number of the region’s telcos are likely to be interested in expanding into the IPTV market, as the growth of broadband connections in the region begins to approach double figures.
“IPTV allows operators to boost average revenue per user and can increase Internet and broadband penetration, especially in MENA countries where PC penetration and English literacy are low,” said Raad.
The report acknowledges that several challenges remain with content availability and the high infrastructure costs chief among them.