IPTV service revenues will approach $14 billion in 2012, climbing from $694 million in 2007, says a new report by Strategy Analytics.

Although there are numerous IPTV providers of all shapes and sizes in the United States, the landscape is largely dominated by two incumbents — AT&T and Verizon — each of which has a different approach in terms of technology and investment.

“2007 was a watershed year for IPTV in the U.S. market,” said Ben Piper, director of the Strategy Analytics Broadband Network Strategies service. “The two major U.S. players reached critical mass in terms of subscriptions. The onus is now on service providers to quantify and articulate the benefits of IPTV against ‘traditional’ pay TV media, such as cable and satellite.”

Service growth will come largely from an increased number of IPTV-passed homes and higher take-up rates, the report said.

“Our models suggest that IPTV will make impressive headway in the next several years, both in terms of overall homes passed and service revenues,” said David Mercer, VP of the Strategy Analytics Digital Consumer Practice. “Service providers have only a limited number of ‘levers’ to pull, and should try to think holistically in terms of an overall customer experience.”

The study, “U.S. IPTV Forecast and Outlook,” provides an outlook of the current IPTV market in the United States. It includes forecasts for homes passed, homes connected and service revenues in the market through 2012. In addition, it identifies key imperatives for service providers to compete effectively in a highly penetrated pay-television environment.

For more information, visit http://www.strategyanalytics.net/.