OTT, multiscreen TV spur streaming video, broadcast equipment spending
| 03 June 2014
In global marketplace transformed by multiscreen and over-the-top (OTT) services, spending on broadcast and streaming video equipment market grew 5.6% worldwide to $1.6 billion in 2013 according to Infonetics Research.
Driving the increase in revenues was spending on content delivery networks (CDNs) which the research found to be evolving to support an increasing number of OTT formats such as HTTP Live Streaming (HLS) and Microsoft Smooth Streaming. Two of the strongest growing segments in the broadcast and streaming video market are CDN edge servers, which Infonetics expects to grow at a healthy 17% CAGR from 2013 to 2018, and multiscreen broadcast encoders, growing at an 8% CAGR. By contrast, spending on contribution encoders and video-on-demand (VOD) playout servers decreased.
Infonetics discovered that pay-TV providers were using a wide variety of platforms, from GPU-based devices to software only, to create massive and distributed encoding horsepower in the cloud-all managed centrally via software-defined networking (SDN) controllers.
"We are very early in a long-term transition to software-based and SDN-controlled video processing, but we believe the shift will result in increased spending on both multiscreen encoders and content delivery network equipment, as pay-TV and OTT providers begin purchasing these platforms to more efficiently process and distribute video content," said Jeff Heynen, Infonetics principal analyst for broadband access and pay-TV commenting on the survey. "Multiscreen and multi-format video give providers the flexibility to deliver video to any end device from nearly every point in their network."
In a world where binge-viewing and multi-room and multiscreen become the norm, Infonetics forecasts the total equipment market to top $2.5 billion by 2018 and adds that there will likely be an increase in cloud-based storage capabilities.