IPTV services will nearly double their share of the digital TV market over the next two years, says analyst Datamonitor.

The distribution of content via broadband will experience the second largest growth of market share, rising from three per cent last year to 5.7 per cent in 2010. In comparison, digital terrestrial television is predicted to rise by just 3.7 per cent.

The rise of technologies like mobile video and personal media players is giving consumers new ways to watch television and the global broadcast market will swell from $284bn (£145bn) in 2007 to $326bn (£166bn) by 2010, according to Datamonitor analyst Chris Khouri.

But the growth will only be achieved if providers diversify revenue streams, offering on-demand content and bundling TV with other services like broadband access and interactive applications.

"Advertising has been a steadfast revenue generator for the broadcast sector, " said Khouri.

"However, as consumption habits transform and consumers utilise multi-platform channels as well as on-demand and time-shifted viewing, traditional revenue generation models are loosing their effectiveness to bring returns.

"Broadcasters therefore will need to look to a variety of diversified revenue streams to bolster income."