Skip to main content

How Video Apps are Driving SP Network Investment

Infonetics Research released excerpts from two recently published video equipment market share and forecast reports. These latest market studies demonstrate how video entertainment applications demand is impacting broadband service provider (SP) infrastructure investment decisions. That being said, most of the growth will come from online video streaming apps, not traditional pay-TV.

The first report, Video-on-Demand (VOD) and Encoder Equipment and Video Subscribers -- which tracks video equipment sold to telco IPTV, cable video, and satellite video providers. And the second report, Set-Top Boxes and Subscribers -- which tracks IP, cable, satellite hybrid, DVR, and high definition (HD) STBs, as well as over-the-top (OTT) media servers.

"Two of the most interesting trends in the video equipment and set-top box markets are 1) across the board, pay-TV operators continue to increase their investments in MPEG-4 encoders to reduce bandwidth requirements for their broadcast channels and VOD streams, and 2) despite healthy STB unit growth in 2011, revenue was nearly flat, reflecting the growth of lower-cost STBs in emerging markets, particularly China, combined with the increased competition we're seeing in the more mature markets," notes Jeff Heynen, directing analyst for broadband access and video at Infonetics Research.

VOD and Video Encoder Market Highlights
  • Following annual declines in 2009 and 2010 during the global recession, the video infrastructure market (VOD and streaming content servers and video encoders) grew 6 percent in 2011 to $803 million, as all major world regions except EMEA increased spending.
  • Sequentially (from the third to the fourth quarters), the overall market is up 4 percent and from the year-ago fourth quarter, the market is up 6 percent.
  • Infonetics forecasts double-digit percent revenue increases in the global video infrastructure market in 2012.
  • A cumulative $1.9 billion will be spent on standard and high definition (SD and HD) MPEG-4 video encoders over the next 5 years, from 2012 to 2016.
  • Huawei leads the global VOD server market in both 4Q11 and for the overall year 2011; Motorola and ZTE are neck-and-neck for global VOD revenue in 4Q11

Video Set-Top Box Market Highlights
  • In 2011, worldwide set-top box unit shipments grew 13.7 percent compared to the previous year, while revenue was nearly flat, up less than 1 percent, to $13.3 billion.
  • Similarly, global set-top box unit shipments grew faster (+6.0 percent) than revenue (+3.8 percent) between the third and fourth quarters of 2011.
  • Decent growth in high definition (HD) and DVR STB sales helped keep average selling prices (ASPs) from declining too quickly.
  • In the tight race for overall global STB revenue share, Motorola, Echostar, Pace and Cisco lead, all separated by only a few market share percentage points in 4Q11.
  • IP STB and hybrid IP/DTT STB unit shipments are forecast to grow the strongest among the various types of set-top boxes over the next 5 years, increasing their share of the total market.
  • Demand continues to accelerate for online video streaming devices -- such as those made by Apple, Boxee, Roku, Popcorn Hour, D-Link, NETGEAR, Western Digital and TiVo -- with global over-the-top (OTT) media server revenue jumping 38 percent and unit shipments up 68 percent in 2011 as more service providers offer streaming video to their subscribers.

Popular posts from this blog

How to Drive Value Creation from Digital Business

Across the globe, many forward-thinking CEOs and CFOs continue to fund business technology investments that enable meaningful and substantive digital transformations, ahead of their industry peer group. That's why CIOs and other IT leaders must now accelerate the quest for value creation and drive digital growth from those ongoing investments, according to the latest market study by Gartner. "The pressure on CIOs to deliver digital dividends is higher than ever," said Daniel Sanchez-Reina, VP Analyst at Gartner . "CEOs and boards anticipated that investments in digital assets, channels, and digital business capabilities would accelerate growth beyond what was previously possible." Digital Business Market Development   CIOs expect IT budgets to increase 5.1 percent on average in 2023 -- that's lower than the projected 6.5 percent global economy inflation rate. A Gartner survey analysis revealed several ways in which CIOs can deliver "digital dividends&qu

Digital Transformation Investment at $3.4 Trillion

Business technology leadership matters. Across the globe, more leaders have been pursuing bold Digital Transformation (DX) initiatives with the goal of creating new sources of business value through digital products, services, and experiences. As an additional benefit, the COVID-19 pandemic revealed that digital transformation efforts improve an organization's resilience against global market disruptions. Global DX investment is forecast to reach $3.4 trillion in 2026 with a five-year compound annual growth rate (CAGR) of 16.3 percent, according to the latest worldwide market study by International Data Corporation (IDC). Digital Transformation Market Development "Despite strong headwinds from global supply chain constraints, soaring inflation, political uncertainty, and an impending recession, investment in digital transformation is expected to remain robust," said Craig Simpson, senior research manager at IDC . The benefits of investing in DX technology -- including aut

Artificial Intelligence for National Border Security

National border protection agencies are under pressure to provide the highest level of security in the face of growing threats, such as increasing illegal migration and international terrorism. Now, government agencies are embracing advanced border security technologies to aid in effectively and reliably securing national borders. These solutions look to detect and identify potential threats and prevent them from escalating to a point that may jeopardize security. Security Surveillance Market Development Traditional border security patrols and Closed-circuit Television (CCTV) surveillance systems aren't adequate protection, and agencies must increasingly deploy new solutions to stay ahead of criminals and other potential threats to ensure the safety of a country’s borders. According to the latest market study by Juniper Research, the value of the border security technology market will exceed $70 billion globally in 2027 -- that's rising from $48 billion in 2022. Growing by 47 p