OTT, multiscreen surge drives uptick in adaptive bitrate gear and transcoders

Joseph O'Halloran | 26-07-2013

In what may be the equivalent of the Klondike shovel-makersí success, there is now tangible evidence of steady investment in the platforms necessary to optimise the burgeoning over-the-top and TV everywhere services.

A new study from Infonetics Research, Broadcast and Streaming Video Equipment and Pay TV Subscribers, has shown that global broadcast and streaming video equipment market exceeded $2 billion in 2012 and is set to grow about 12% in 2013.
In this booming streaming video industry, Infonetics regards adaptive bitrate (ABR) origin and packaging servers as key components in the efficient delivery of OTT content, especially as more pay-TV providers and content delivery networks move towards using the technology to deliver such streams efficiently.
Additionally, the analyst notes that increasing amounts of transcoders are being used to prepare linear broadcast and file-based content for distribution directly to subscribers.
"With competition and content heating up, pay-TV providers are transitioning their traditional, broadcast-focused video processing environments to ones that can ingest, process, deliver, and decode video content from multiple sources," commented Jeff Heynen, principal analyst for broadband access and pay-TV at Infonetics Research. "At the same time, content owners and studios are also adjusting their workflow and video output to support multiscreen and streaming services."
As a result, Infonetics predicts 33% growth for ABR in the period to 2017. Looking at where the most profitable markets may be, the analyst also predicts that between 2012-2017 telco IPTV subscribers will likely have the highest CAGR (17%) of any pay-TV subscriber segment.