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

How the COVID-19 Pandemic Advanced Telehealth Adoption

The global COVID-19 pandemic has accelerated digital transformation across many industries. As an example, consider the healthcare sector. Some routine medical situations can be diagnosed and resolved online. While the trend was already in motion long before the pandemic arrived, the adoption of telehealth increased rapidly in 2020. Around the world, many governments responded to the disruption and inaccessibility of healthcare facilities by loosening previous regulations and restrictions on the practice of telemedicine apps, and teleconsultations. This decision resulted in the mass adoption of these medical services among patients and providers. According to the latest market study by Juniper Research, telemedicine will save the healthcare industry $21 billion in costs by 2025 -- that's rising from an estimated $11 billion in 2021. This increased app usage represents an anticipated growth rate of over 80 percent in the next four years. Telehealth Services Market Development The co

How Edge Computing and AI Applications Drive IoT

The global pandemic has accelerated the adoption of emerging technologies, including edge computing and TinyML. As more CIOs and CTOs seek ways to capture and process data at the edge of their enterprise IT network, the demand has fueled investment for Internet of Things (IoT) applications. According to the latest worldwide market study by ABI Research, the global edge Artificial Intelligence (AI), Software-as-a-Service (SaaS), and turnkey service market will grow at a CAGR of 46 percent between 2020 and 2025 to reach $7.2 billion. This is 25 percent of the global edge AI market, which is estimated to be $28 billion by 2025. The market is comprised of edge AI chipsets, SaaS, and turnkey services, as well as professional services. As the benefits of edge AI becomes more obvious, enterprises are searching for edge AI solutions that offer low latency and are fully secured to assist them with data-based analysis or decision-making. Edge Artificial Intelligence Market Development "The

Worldwide Semiconductor Demand will Accelerate in 2021

The technology sector is a key driver of the U.S. economy. Therefore, components like semiconductors play an important role in America's future. The 'CHIPS for America Act' is a new law that calls for incentives on domestic semiconductor manufacturing and investments in research and development. But these renewed efforts will require years of ongoing commitment. Meanwhile, despite the impact of the COVID-19 pandemic, the semiconductor market performed well in 2020. However, new demand by industry was uneven throughout last year due to global lockdowns, remote working adoption, and shifts in consumer and commercial buying behavior. Worldwide semiconductor revenue grew to $464 billion in 2020 -- that's an increase of 10.8 percent compared to 2019, according to the latest market study by International Data Corporation (IDC). Semiconductor Technology Market Development IDC now forecasts that the semiconductor market will reach $522 billion in 2021, that's a 12.5 percent