Service providers are looking to video services for higher revenue and better margins than commodity bandwidth can deliver. Those who have added IPTV or other advanced video services are reporting increases in the average revenue per subscriber (ARPU) of US$20 per month and more, with total ARPUs reaching more than $100 per month, and the number of premium video on demand (VoD) downloads more than doubling year-over-year in some cases. With penetration rates for advanced video services often still below 30 percent, service providers who can cost-effectively deploy and support high-quality video services enjoy a revenue potential in the millions of dollars annually.
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