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Cable Technology Feature Article

June 06, 2013

Traditional Video on Demand Vendors Risk Losing Half VOD Market by 2018

By Raju Shanbhag, TMCnet Contributor

Mobile screens are getting larger every day, and people have access to various fast and cheap broadband plans. A combination of these two factors has resulted in users preferring to watch videos on the go, on their mobile devices. While this is a welcome development for users, video content owners have to make some swift adjustments to be in the game.

In its new research, titled "Cloud Video and Video Hardware Research Service," ABI Research (News - Alert) has focused on the changing dynamics of the video content market. As the priorities of the video content viewers change rapidly, traditional players in the field are finding it difficult to adjust to the new market scenarios, the report claims.

The new shift in video is that the viewers now prefer to watch them on their tablets instead of their PCs or TVs. This has resulted in traditional players like Arris (News - Alert) (including Motorola Home), SeaChange, Cisco and Ericsson losing some ground or registering slow growth. VOD vendors who are still sticking to the old video delivery format will witness only 30-percent growth, the report states.

According to the report, the VOD management market will welcome the new players who understand user needs. They will register 100-percent growth in the coming years as they cater to changing user demands.

ABI had stated that in 2012, video platforms distributing video on behalf of media and entertainment companies recorded revenue of $2.1 billion. ABI Research predicts that this revenue will grow to an impressive $4 billion in 2017.

“VOD Equipment and system vendors have adapted their systems to work on commoditized IT-grade hardware and are enabling multiscreen IP delivery to sit alongside classic set-top box delivery,” commented practice director Sam Rosen. “However, they have failed to adapt to syndicated workflows."

Recently, the company ranked Telogis as the industry leader in innovation. Telogis (News - Alert) provides cloud-based location intelligence platform.

Edited by Alisen Downey

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