"IPTV services provide European operators with a critical toehold in attracting and retaining customers. However, IPTV is a small part of a crowded market of terrestrial, satellite and cable offerings, and the competition will be intense,” according to Kurt Scherf, vice president at Parks Associates.

Accoridng to eMarketer, there were by estimate 12.5 million IPTV households worldwide in 2007, with 60 percent or 7.5 million in Europe. Asia-Pacific was the second-largest market, with 3.3 million households. U.S. households only accounted for 1.2 million.

By 2012, the global IPTV households are expected to reach 61.1 million, eMarketer reported.