According to MRG, the shift from MPEG-2 to MPEG-4 encoding and headend purchases is expected to begin in volume in the 2007 to 2008, meaning prolonged life for MPEG2 in IP TV systems. Moreover, the rise of IPTV content subscribers will drive an equally rapid installed based of IPTV video headends. Broadband service providers in the U.S., Asia, and Europe have announced or plan to announce deployments of IPTV-based content services, opening up opportunities for all video headend suppliers. One key forecast is that IPTV subscriber revenue will grow from about $400 million in 2004 to over $6 billion in 2008, meaning a substantial investment in content and infrastructure is fast approaching. Whether for SBC, Verizon, or BellSouth in the U.S., China Telecom in Asia, or France Telecom or Telefonica in Europe, IPTV video headend suppliers must help service providers compete in increasingly competitive markets. "IPTV vendors, in addition to offering unique and innovative services, have to use new technologies to achieve competitive advantages,' stated Gary Schultz, MRG principal analyst. "Yet the end-to-end value chain needs to remain price-sensitive to new adopters."
The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without