The report, "Mega Scale IPTV Networks: How to Create Very Large IPTV Networks," notes that big providers such as AT&T/SBC, Verizon, and France Telecom are busy expanding their IPTV services and creating new models for delivering content.

It says that key to growing IPTV networks are two factors --- the underlying network architecture, and bandwidth accommodation.

"Careful engineering will be key," Bob Larribeau, MRG Senior Analyst said in a statement. "Distributing IPTV functions to the edge and paying attention to software architecture will clearly facilitate the scaling of IPTV networks."