Skip to main content

Upside Growth Opportunities in Video Entertainment

Infonetics Research released results from their latest market study of the video on demand (VOD) entertainment landscape, which tracks equipment sold to telco IPTV, cable video, and satellite video service providers.

Moreover, Infonetics assessed the current pay-TV IP, cable, satellite, and hybrid set-top box (STB) and over-the-top (OTT) media servers market.

"Operators are being extremely cautious with their video infrastructure spending right now, looking to sweat their assets as much as they can -- knowing that a spending spree looms on the horizon to support more unicast and multi-screen services, including RS-DVR, start-over, look-back, and streaming delivery to mobile devices," said Jeff Heynen, directing analyst at Infonetics Research.

Infonetics said that they expect a noticeable increase in video equipment spending during 2013. Clearly, this year will be a challenging one for most pay-TV service providers in the saturated markets -- such as North America and Europe.

Both are key markets, as the legacy video entertainment distribution chain seeks ways to counter the adoption and growth of lower-cost over-the-top (OTT) streaming video offerings. Traditional vendors are experiencing some buyer hesitation, due to a cloudy outlook in these markets.

Ultimately, these legacy pay-TV service providers must find a way to create offers that appeal to younger consumers -- that solution likely includes embracing the high-growth streaming video value proposition. I believe that's where the current upside growth opportunities exist.


3Q12 VOD and encoder market highlights include:
  • Infonetics has increased its long-term forecast for the overall video infrastructure market to $1.1 billion by 2016, as operators worldwide migrate to MPEG-4 HD encoders to support higher picture quality using less bandwidth and as multi-screen services take off.
  • For the quarter, VOD and encoder equipment revenue fell 3 percent in 3Q12 from 2Q12, with all regions declining by single digits.
  • Following 2 consecutive quarters of declines, spending on VOD and streaming content servers grew 1.8 percent in 3Q12.
  • Infonetics forecasts the number of IPTV subscribers to nearly double between 2012 and 2016, from 83 million to 165 million worldwide.

3Q12 set-top box market highlights include:
  • Worldwide set-top box revenue was essentially flat in 3Q12, totaling $3.7 billion.
  • Cisco held serve as the cable set-top box market share leader for the second straight quarter, beating out Motorola by a hair.
  • The IP set-top box segment grew the most in 3Q12, with revenue up 27 percent from the previous quarter.
  • 45 percent of all set-top boxes shipped now have HD capabilities.
  • Infonetics has increased its long-term overall STB forecast, due mainly to a pick up in the pace of cable and satellite STB shipments in the Asia-Pacific region, principally in China and India; Infonetics expects the global STB market to grow to $16.6 billion in 2016.

Popular posts from this blog

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

The Fastest-Growing Mobile Opportunity in 2022

The number of mobile communication subscriptions worldwide is currently estimated at 8 billion, with 6 billion on smartphone connections, from a user base of 5.9 billion unique subscribers among a global population of 7.9 billion. Fifth-generation (5G) mobile service subscriptions using a compatible device significantly grew during the COVID-19 pandemic, but 4G connections remain the dominant force within the global telecom service provider sector. While the use of mobile phones is common throughout developing nations, 4G services are still an emerging technology in many parts of the world. Overall, 5G subscriptions will likely grow from 580 million at the end of 2021 to 3.5 billion by the end of 2026. 5G Mobile Market Development According to the latest worldwide market study by Juniper Research, revenue generated from 5G mobile services will reach $600 billion by 2026 -- representing 77 percent of global network operator-billed revenue. The adoption of 5G services across consumer and

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d