Next generation video-on-demand technology—known as Content Delivery Networks (CDNs) and Data Centres—will dramatically change the business model and the user experience for video delivery services. CDN-provisioned Video-on-Demand will allow content owners more control over their creations and provide viewers with more choices in programming and delivery methods according to In-Stat.

"As Content Providers build or out-source their own data centres, they will be in charge of every aspect of their content," says Gerry Kaufhold, In-Stat analyst. "We will see flexible, complex, and creative ways to derive every last penny out of every piece of content."

Recent research by In-Stat found the following:

– Over the next five years, the worldwide value of Content Delivery Network services will nearly double, to more than $2 billion.

– The IT industry is aggressively driving forward with cost-cutting technologies that simplify storage, virtualised servers, and standardise networks.

– Traditional TV and Subscription-TV Services need to migrate their existing "siloed" Video-on-Demand infrastructure to more efficient Data Centre and CDN models.

– Internet protocol networks that connect from Data Centres and CDNs to Final Mile networks provide a "lean" delivery system that can profitably support Advanced Advertising and more personalised video delivery experiences.

– North America will remain the dominant geographic segment for CDNs through 2013. However, Europe and Asia Pacific will see significantly higher growth rates.

– Adaptive Bit Rate Video approaches will permit IP-networks to deliver a high-quality User Experience at lower bit rates, and will cross over to TV-based services.

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Categories: Research Library, VOD