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Growth Trends in the Video Server Market

As more video content is available online, broadband service providers are increasingly investing in Video on Demand (VoD) and time-shifting services.

This trend towards time-shifted television viewing has helped produce a shift from schedule-based TV broadcasting to on-demand distribution.

Time-shifting has created a new opportunity for operators to acquire and retain new customers, and has enabled several applications such as catch up TV, pause live TV, and network personal video recording (nPVR) capabilities.

"VOD and server-based time shifting are attractive services for consumers and give carriers a cost-effective weapon in combating the new offerings consumers find outside of traditional pay-TV services," says ABI Research director Michael Wolf.

"This overall push for greater consumer control over viewing through time-shifted and on-demand content will have a direct impact on the success of those selling video servers and related infrastructure."

Time-shifted TV has led to an increase in the amount of content, which also has an impact on server storage requirements. Additionally, a continued transition to high-definition content will result in increased demand for video server capacity over time.

Carriers continue to invest in VoD services and to expand network capability. Those server vendors that design and develop products able to handle this expansion in both content and storage, and to make services available to consumers effectively, are best positioned to garner this business.

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