Multiscreen to give kick to video infrastructure market in 2013

Joseph O'Halloran | 21-12-2012

Even though operators are currently deferring video infrastructure spending, research firm Infonetics is predicting a big switch-on for 2013.

In its Video-on-Demand (VOD) and Encoder Equipment and Video Subscribers report, the analyst has increased its long-term forecast for the overall video infrastructure market to $1.1 billion by 2016, as operators worldwide migrate to MPEG-4 HD encoders to support higher picture quality using less bandwidth, and as multiscreen services take off.

Infonetics calculates that for the third quarter of 2012, VOD and encoder equipment revenue fell 3% quarter-on-quarter, with all regions declining by single digits. Yet after two consecutive quarters of declines, spending on VOD and streaming content servers grew 1.8% in 3Q 2012 and the number of IPTV subscribers nearly doubled between 2012 and 2016, from 83 million to 165 million worldwide.

Analysing the set-top box market, Infonetics calculates that due mainly to increased momentum in the Asia Pacific region, principally in China and India, the global STB market will likely grow to $16.6 billion by 2016. Presently, the analyst found that global STB revenue was essentially flat in Q3 2012, totalling $3.7 billion. The research found that the IP set-top box segment grew the most in 3Q 2012, with revenue up 27% from the previous quarter, and that 45% of all set-top boxes shipped now have HD capabilities. Looking at the key players, Cisco took top place in terms of cable STB market share just ahead of Motorola.

“Operators are being extremely cautious with their video infrastructure spending right now, looking to sweat their assets as much as they can, knowing that a spending spree looms on the horizon to support more unicast and multiscreen services, including RS-DVR, start-over, look-back, and streaming delivery to mobile devices,” said Jeff Heynen, directing analyst for broadband access and pay-TV at Infonetics Research. “We expect a noticeable jump in video equipment spending in 2013.”