Broadband providers which offer IPTV services are being rewarded with increased customer loyalty, it has been reported.
According to a study conducted by analyst firm InfoCom, internet service providers (ISPs) which offer broadband TV services as part of multi-play bundles are having less difficulty keeping hold of their subscribers.
The firm, which studied the fast-developing IPTV markets of North America and Europe, found that IPTV is not yet playing a significant role in generating revenue for ISPs.
However, broadband and home phone customers are less likely to switch broadband provider if they are also receiving TV services from the same vendor, InfoCom stated.
In the UK, ISPs such as BT, TalkTalk and Virgin Media will be hoping that the anticipated additional of broadband TV services helps consolidate their user base.
BT and TalkTalk are involved in the delayed YouView project, which is now set to launch in early 2012, while Virgin Media is developing its own rival set-top box service.