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The Worldwide Video Infrastructure market increased revenue in Q2 2015 but decreased year over year because of a general slowdown in service providers’ capital expenses, accelerated competition and companies moving toward the cloud platform. According to ACG Research, The Q2 Total Worldwide Video Infrastructure market posted revenue of $3.1 billion. Set-Top Box Worldwide Market Shares, which includes IPTV STBs, Cable STBs, and DTAs, declined 1.9 per cent quarter-on-quarter and 17.1 per cent year-on-year. The demand for packet-based infrastructure has seen an upward trend recently; Video Packet Infrastructure Worldwide Market Shares, which includes Core Router, Edge Router and CMTS, increased 7.4 per cent quarter-on-quarter but decreased 1.3 per cent year-on-year.
Cloud- and software-based services are the key trends around which industry players are making targeted moves. Major vendors and service providers are moving towards cloud architecture, which increasingly is nowadays driving the video infrastructure market. Of note this quarter, Alcatel-Lucent announced cloud-based IP video storage and content delivery technologies with its new Cloud DVR platform, which allows SPs to manage network capacity more dynamically as they deal with growing customer demand. ARRIS integrated TiVo Cloud and DVR software into its STBs to enable SPs to offer TV Everywhere and on multiple screens. The company also acquired PACE, gaining share of satellite segment and also owns majority stake in ActiveVideo, a sales channel for the cloud TV platform. Cisco sold off its STB business to Technicolor for ~$600 million and announced video software and cloud services products with the launch of Infinity Home and Infinity Video.
On the service provider side AT&T acquired DirecTV, which gives the company millions of new customers as well as UHD STB. AT&T plans to deliver traditional TV content, mobile or streaming over-the-top content on any device. AT&T is also working with Chernin Group to develop and launch OTT video services. Google announced Google Intercloud platform, its content delivery network. Verizon is launching its own ad-free OTT video service, Go90, targeting younger audience with customised programming inventory.
“Video infrastructure continues to be a top priority for major enterprise organisations, especially with the advent of faster broadband Internet connections and Internet-connected mobile devices,” says Meghna Zutshi, ACG Research video technologies analyst. “Acquisitions and collaboration are in play to combine efficiencies of capex to deploy faster broadband, which is the future vehicle for content delivery and monetisation. Traditional SPs are moving pay-TV rapidly to OTT delivery model. Video content delivery on multiple screens, anywhere on any device, DVR with local content storage and playback capability and cloud DVR are driving the industry focus.”