Company Trend Analysis - IPTV Launch No Panacea For Diminishing Revenues - SEPT 2017

BMI View : As an aid to growth, Partner ' s IPTV service will only be mildly successful in the short term as it comes late into a market characterised by pay-TV saturation and dwindling operator revenues . Partner will leverage three aspects of its service: superior infrastructure, a flexible platform and premium content straight to the TV , but this will be no quick fix for its underlying problems .

Partner Communications is launching its new IPTV service, which will include 40 live channels as well as video-on-demand (VOD) content. As part of Partner's collaboration with Netflix, IPTV subscribers will be able to access Netflix content directly through Partner's set-top box (STB) interface. The service will be offered on its own, and as part of double- and triple-play packages with wireline voice and broadband. Partner's aim of improving customer retention and monetisation with video is laudable, but will enjoy limited success.

The heart of the problem is Israel's saturated converged services market. The other three major operators are already offering mobile, wireline and pay-TV services, through cable, satellite and IPTV. Mirroring moves by rival Cellcom, Partner is looking to grow and diversify sources of revenue, as a highly competitive mobile market has deteriorated all operators' revenue streams. As such, Partner will have to differentiate its IPTV service to compensate for its late entry into the pay-TV market.

Declining Revenues Prompt IPTV Launch
Partner Revenue And ARPU (ILS)
Partner, BMI

This article is part of our Middle East & Africa coverage. To access this article subscribe now or sign up for free trial