Market research firm Infonetics Research has completed its second quarter IPTV, Cable, and Satellite Video Equipment, Services, and Subscribers report. “Slow but steady IPTV and cable video subscriber growth in North America, Europe, and Asia, led by AT&T, Verizon, Belgacom, Swisscom, Telus, and KPN, helped boost the equipment market in the second quarter, particularly IP set-top boxes, middleware, and video content security software," commented Jeff Heynen, Infonetics Research’s directing analyst for broadband and video.
"Another significant development this quarter was the US Court of Appeals strike-down of the FCC rule limiting cable video providers from owning more than 30 per cent of the video subscription market. This could pave the way for Comcast to pass the 30% threshold via a merger or acquisition. In a year where growth is hard to come by and corporate valuations are low, we think there could be significant M&A activity in North America in the second half of 2009,” predicts Heynen.
Hignlights of the report include:
— Worldwide telco IPTV and cable video equipment revenue hit $1.2 billion in 2Q09, up 15 per cent from 1Q09
— Cable operators are investing heavily in VOD infrastructure and hybrid IP/QAM set-top boxes to transition to a hybrid broadcast/unicast approach
– The UK’s Virgin Media will be a trailblazer along these lines, opting to begin its transition to IPTV now, and aiming to serve roughly 13 million subscribers by 2012
— Chinese cable companies, with roughly 170 million video customers at the end of 2008, are furiously upgrading their ageing broadcast video networks to support digital video and other bidirectional capabilities
— Revenue derived by service providers and cable companies for IPTV, cable video, and satellite video services is forecast to grow to $142 million in 2013 in North America.