VOD technology to lose 50% market share to cloud, CMS
Michelle Clancy | 05-06-2013
The shift of video consumption to tablets and smartphones is causing operator requirements for video-on-demand (VOD) systems to change as vendors struggle to keep up with current generation needs, according to ABI Research.
The analyst firm found that equipment and system vendors, such as ARRIS (including Motorola Home), SeaChange, Cisco and Ericsson, are expected to lose ground to cloud-oriented companies such as thePlatform, Synacor and KIT Digital (expected to emerge from bankruptcy as Piksel). Overall, VOD vendors will see less than 30% growth over the next five years, while content management system (CMS) vendors will capture the market and see nearly 100% growth to seize half of the total VOD management markets.
Classic VOD back-office systems are built around delivery to the TV via a set-top box, leveraging a single video format, a managed network, a modest number of business models (free, packaged and pay-per-view) and a standalone hierarchical architecture.
"VOD equipment and system vendors have adapted their systems to work on commoditised IT-grade hardware and are enabling multiscreen IP delivery to sit alongside classic set-top box delivery," said ABI practice director Sam Rosen. "However, they have failed to adapt to syndicated workflows."
Video CMS, which resemble premium online video platforms (OVPs), have been used in a number of high profile operator multiscreen initiatives, including Comcast's X1 project, Liberty Global's Horizon architecture and Telefonica's new Global Video Platform.