YouView strangling UK IPTV investments

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YouView The Guardian reports that, according to a report by the corporate finance firm Avista Partners, "the BBC-backed video-on-demand service YouView is strangling investment in rival internet TV services."

They argue that YouView will put existing and future investments in the UK IPTV industry at risk.

Their figures that back this conclusion:

Avista estimates that in the 12 months before plans for YouView were first unveiled, internet protocol television (IPTV) investment in the UK was about $35m (£22m), some 15.4% of global investment in the sector.
However, investment has plummeted since, with just $400,000 ploughed into the UK sector, outside of the YouView partners, in the past 12 months.

Avista's figures for the US show that in the 12 months before plans for YouView were unveiled, TV investment stood at $91m and the following year it surged to $274m – while the UK slumped 94% over the same period to $2.1m.
US online TV investment was still a healthy $176m in the past 12 months.


Avista Partners' managing director, Paul Heydon says:

"The UK has witnessed a dramatic fall in private investment for IPTV-based businesses since Project Canvas [YouView] was first announced.

It is difficult to lay the blame on the economic crisis for this, especially when comparing the extreme buoyancy of US investments in this sector for the same period. It is clear the collective power of the companies behind Project Canvas is a major cause for concern for investors looking at private IPTV businesses in the UK."

 



 

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