VOD server revenue tripling by 2013

Communications market research firm Infonetics recently released the Q1 09 edition of its IPTV and Switched Digital Video Equipment, Services, and Subscribers report. Highlights are:

"All eyes are focused on video on-demand and streaming content servers as more and more programming moves to on-demand. VOD is rapidly becoming EOD (everything on-demand) as operators beef up their streaming server capacity to support not only HD VOD, but network and RS-DVR services, targeted advertising, and start-over services, all of which will become standard features for video providers. These changes will lead revenue for VOD and streaming content servers to triple between 2008 and 2013,” said Jeff Heynen, directing analyst for broadband and video at Infonetics Research.

Highlights of the report include:

– Service providers and cable operators paused spending on Internet protocol television (IPTV) and switched digital video (SDV) equipment in 1Q09, pushing worldwide sales down 11 per cent sequentially to $1.0 billion

– The overall market is expected to grow at a healthy pace over the next 4 quarters as service providers roll out new IPTV networks or expand existing networks and cable MSOs introduce switched video capabilities into their digital TV networks

– VOD servers are quickly transforming from solid-state based, centralized devices connected to a master storage library, to cheaper, flash-based memory in a switched architecture, led by BigBand, Cisco, Motorola, and Verivue

– The number of pure and hybrid IPTV subscribers more than doubled in 2008 to 26 million worldwide, and is expected to surge to about 155 million by 2013

– IP set-top box (IP STB) vendor revenue is forecast to grow at an average of 14 per cent annually between 2008 and 2013

– By 2013, telco service providers are expected to derive about $56 billion worldwide from IPTV services offered (not including mobile IPTV services)

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