Appetite for 'Everything-On-Demand' Drives Service Provider Spending
8/11/2009 -- The market for triple-play video services -- or, more precisely, for video-on-demand (VoD) services -- comprises still another safe harbor in an otherwise reeling industry.
That's good news for Cisco Systems Inc., Motorola, BigBand and other VoD purveyors, which are expected to reap a windfall in so-called "everything-on-demand" (EoD) spending, as service providers scramble to expose new HD VoD and RS-DVR services to content-hungry consumers..
"All eyes are focused on video on-demand and streaming content servers as more and more programming moves to on-demand," said Jeff Heynen, directing analyst for broadband and video at Infonetics Research, in a statement. "VoD is rapidly becoming EoD...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."
Cisco, BigBand, Motorola and Verivue are spearheading a transition from "solid-state based, centralized devices" (which connect to a master VoD library) to "cheaper, flash-based" devices that connect via a switched architecture. This transition -- in tandem with rapacious demand on the consumer front -- is driving aggressive EoD uptake on the part of service providers, Infonetics indicates.
Through 2013, the market watcher projects, IP set-top box (STB) revenues will grow at a 14 percent annual clip; that's good news for Cisco, Motorola and other prominent purveyors of IP STB devices.
And the future looks even rosier. By 2013, Infonetics suggests, IPTV services will generate nearly $60 billion in worldwide revenues for telco service providers; that tally does not take into account consumption by mobile devices, Infonetics stresses. --Stephen Swoyer
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