Technology | Media | Telecommunications

Thursday, March 27, 2008

Cable Finds its Switched Digital Video Mojo

With all the talk about the growth potential of telco IPTV service offerings, some market analysts may believe that cable TV service providers have lost their edge. However, cable has apparently found a technology to breath new life into their legacy infrastructure.

Switched Digital Video (SDV) technologies provide an excellent, long-term approach that is helping cable operators keep up the pace with expanding High Definition TV and super high-speed data services, reports In-Stat.

SDV is a new technology that distributes video more efficiently over cable TV coaxial lines, the high-tech market research firm says. SDV will enable cable operators to better compete with rivals in digital broadcast satellite and telco TV.

"Initial deployments will create a strong market for upgrades, which will become dominant in 2012," says Gerry Kaufhold, In-Stat analyst. "The strategic key to success for vendors will be winning early deployments, because follow-on upgrades will be lucrative. World-class professional services, staff training, and the ability to remotely monitor and repair SDV installations will be the winning formula."

The In-Stat research covers the worldwide market for SDV. Their report offers a complete bottoms-up market model, estimating the annual costs for new and upgraded Switched Digital Video installations, the number of large, medium, and small headends expected to use SDV, and the annual value of the SDV market in four geographic regions.

In-Stat's market study found the following:

- The market for SDV equipment, software, and services is expected to grow from about $165 million during 2008, up to more than $1 billion in 2012.

- North America will be the biggest market, with Asia coming on strong later.

- Large cable TV systems will drive early growth for SDV.

- Medium cable TV systems will become an important segment as early as 2009.

- Even small cable TV systems will turn to SDV in large numbers after 2010.