Boston - The number of households with Internet-based digital TV service (IPTV) will rise from less than 6 million worldwide in 2006 to more than 80 million by 2011, but half of these are expected to subscribe to IPTV as part of a bundled broadband package, according to a report from market research firm Strategy Analytics.

"The traditional pay-TV definition breaks down in an environment in which multiple IP services (broadband, VoIP and IPTV) are paid for by a single fee, and in which a growing share of TV programming will not be paid for via subscriptions," said Strategy Analytics senior analyst Martin Olausson.

The number of households paying directly for IPTV is expected to rise from 3.3 million in 2006 to 40.9 million in 2011.

"The jury is still out on how much consumers are willing to pay telcos for IPTV," said Strategy Analytics principal analyst David Mercer. "Most telcos will likely offer customers a mix of free, subscription and pay-as-you-go programming models."

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