Diffusion of Internet Protocol Television (IPTV) service demands: An empirical study in the Serbian market

Abstract

In this paper, we consider diffusion process of new services in theresidential market. We described the main influences and decisionfactors of new telecommunication services adoption. In order to forecastthe adoption of new service, diffusion theory is applied. Building uponthe Bass diffusion model, we proposed an innovative approach, whichencompasses a new model for residential market potential estimation.Based on such analyses, we performed the forecast of Internet ProtocolTelevision (IPTV) demand in the Serbian market until the end of the year2012. Such forecast are not only important for the providers introducingthe innovation service, but also for all others that provide relatedservices that complement or substitute for the innovation.