TV middleware maintains market consolidation

Editor | 07-04-2013
ABI Research is predicting that the consolidation that has marked the recent middleware market is set to continue.
The analyst points to a trend whereby Cisco’s acquisition of NDS and Arris’ purchase of Motorola Home from Google - in addition to the rumoured takeover by Ericsson of Microsoft’s Mediaroom Middleware Group - has added fuel to this trend.
ABI calculates that around four-fifths of revenues within the middleware, conditional access (CAS) and digital rights management (DRM) markets originate from companies with end-to-end solutions.
In terms of who is driving the market, ABI identifies the leading players as Cisco/NDS, Nagra, Microsoft, Motorola Home and Rovi who account for 70% of the market. It adds that start-ups offering innovations on one aspect of the television experience account for around a fifth of the market.
“We expect the TV middleware market to continue its consolidation phase,” explained Sam Rosen, practice director at ABI Research. “Two forms of consolidation are expected to occur. First, hardware and software companies will come together to offer more of a service oriented approach, similar to Pace’s acquisition of the Latens CAS system in late 2010. Second, acquisitions bringing together technologies required for the next generation TV offering will occur, such as TiVo’s acquisition of TRA for measurement technology.”