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Despite challenges, video infrastructure market grows in big year for multiscreen TV - 01-August-2012, 13:40

Despite challenges, video infrastructure market grows in big year for multiscreen TV

Joseph O'Halloran | 01-08-2012

2012 will be a watershed year for TV Everywhere services as operators worldwide see if it can make transition from nice to offer to delivering positive cash outcomes, new research from Infonetics has revealed.
In two research projects examining video-on-demand (VOD), set-top boxes (STBs), over-the-top (OTT) media servers and encoder equipment sold to telco IPTV, cable video, and satellite video providers, Infonetics found that TV Everywhere and other multiscreen video initiatives were fundamentally changing the TV business model. In particular, it sees traction for apps streaming live TV to iPads, and telcos and cable companies offering home automation, security, and video conferencing to subscribers in an effort to make the TV the hub of the digital home.

The analyst forecasts that the global video infrastructure market, including IPTV, cable and satellite video infrastructure, will likely grow 9% in 2012, to be worth over $875 million with five 5 playersHuawei, Motorola, Cisco, ZTE, and Concurrentowning more than two-thirds of the global VOD and streaming content server market. In addition, Infonetics believes that much of the future growth in the video infrastructure market will come from MPEG-4 HD encoders.
Regionally, China is set to outspend all regions on VOD and streaming content server gear as operators including China Telecom and China Unicom add VOD streams and Infonetics expects the number of IPTV subscribers to more than double from 2012 to 2016, when it will hit 168 million worldwide, with the majority in Asia and Europe.
Commented Jeff Heynen, directing analyst for broadband access and video at Infonetics Research: "Operators across the globe [are closely watching] Comcast, Cablevision and Time Warner Cable to see if adding these services will have a positive impact on subscriber churn and revenueDemand for digital, HD, and premium video content and services will continue to drive revenue growth in the VOD and encoder market, but the set-top box market won't fare as well: despite increasing demand, overall STB revenue is expected to decline starting in 2013, due to falling ASPs."


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