Cable Technology Feature Article
Video Infrastructure Market Hit by Slowdown in Digital Cable and Satellite Segment: Report
By Rajani Baburajan, TMCnet Contributor
The downturn in the North American digital cable and satellite subscribers is affecting the video infrastructure market, Infonetics Research said in its “4Q10 Cable, Satellite, and IPTV (News - Alert) Video Infrastructure and Subscribers market share and forecast report.”
According to Infonetics (News - Alert), the global video infrastructure revenue sequentially decreased 3 percent to $836 million in 4Q10. The increase in video encoder revenue was 10 percent and topped the $100 million mark in 4Q10. The growth in encoders was fueled by renewed efforts among cable operators to expand their HD channel lineups.
“The overall video infrastructure market was impacted by another decline in video-on-demand and streaming content server sales in the quarter, as well as a slowdown in digital cable and satellite middleware sales,” said Jeff Heynen, directing analyst for broadband access at Infonetics Research (News - Alert), in a statement.
North American MSOs and telco IPTV operators are going slow with their purchases of video-on-demand (VOD) servers. They are experiencing slow uptake of pay VOD programming. As a result of the poor usage, North American video infrastructure recorded the biggest decline in the fourth quarter. Sales decreased 7 percent, after two straight quarters of revenue increases.
As per the survey, Concurrent is leading the VOD and streaming content server market for revenue, followed by companies such as ZTE, SeaChange, and Cisco. Huawei did not find a place in the top five list in the fourth quarter. Operators are yet to make enough revenue from pay video-on-demand services, the research finds.
Recently, ACG Research said the size of the Service Provider Video Infrastructure (SPVI) Market was $3.6 billion in fourth quarter of 2010, an 8.2 percent sequential and 6.3 percent year over year increase.
Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.
Edited by Janice McDuffee