"Thanks to a 7 percent increase in encoder spending by North American cable and satellite operators, the global video infrastructure market saw a return to growth in the second quarter," said Jeff Heynen, directing analyst for broadband access and pay TV at Infonetics Research.
The pay-TV market continues to be driven by cable and satellite operators upgrading their encoding infrastructure to support more high-definition (HD) channels and unicast video-on-demand content.
Meanwhile, satellite set-top boxes surged in Q2, with global shipments up 20 percent and revenue up 19 percent sequentially.
The biggest growth is coming from the Asia Pacific region, particularly China, but growth is also strong in Latin America and North America, where DirecTV and Dish Network are seeing sustained subscriber growth and renewed interest in higher-function STBs -- such as Dish's Hopper.
The latest Infonetics market study highlights include:
- The global video infrastructure market, including IPTV, cable, and satellite video infrastructure, totaled $199.5 million in 2Q12, up 5 percent from the year-ago 2nd quarter.
- Telco IPTV, cable, and satellite subscriber growth continues unabated in Latin America and Asia Pacific:
- There is sustained investment in Brazil to build up capabilities ahead of the 2014 FIFA World Cup and 2016 Summer Olympics.
- A national effort is underway in China to increase the availability of digital services in rural provinces.
- Huawei and ZTE dominate the VOD and streaming content server market, together accounting for more than half of worldwide revenue in 2Q12.
- The top 3 cable video service operators by subscribers are Comcast, Time Warner Cable, and Jiangsu Cable TV.
- Many cable operators devote at least 2/5 of their total annual capex to set-top box upgrades.