SOURCE: Infonetics Research

Infonetics Research

September 07, 2011 17:33 ET

Infonetics Research: Video-on-demand servers up, video encoders down in 2Q11; growth to resume

CAMPBELL, CA--(Marketwire - Sep 7, 2011) - Market research firm Infonetics Research today released excerpts from its second quarter 2011 (2Q11) Video-on-Demand, Encoder, and Edge QAM Equipment and Video Subscribers market share and forecast report, which tracks video equipment sold to telco IPTV, cable video, and satellite video providers.

ANALYST NOTE
"Second quarter declines in some video equipment segments -- particularly video encoders -- in North America and EMEA were the result of operators pausing to re-evaluate deployment strategies as they begin to implement multi-screen video services. We expect this pause to be limited in duration, as most vendors feel positive that operators will restart video equipment purchases before year-end," notes Teresa Mastrangelo, directing analyst for video at Infonetics Research.

MARKET HIGHLIGHTS

  • Global revenue from video-on-demand (VOD) and streaming content servers, edge QAMs, and video encoders decreased 3.6% to $251 million in 2Q11 from 1Q11
  • The sequential decline was due mainly to a contraction in video encoder spending across all operator segments
    • Year-over-year (2Q10 to 2Q11), the video encoder segment is up 6%
  • VOD and streaming content server sales grew 4% sequentially, driven by operators racing to add on-demand content for their subscribers to counter growing competition from over-the-top (OTT) video services
  • In 2Q11, benefitting from strong shipments into China, ZTE holds on to the lead it took from Huawei in the global VOD server market in 1Q11; Huawei is #2 and Concurrent is #3
  • Infonetics expects global revenue from VOD and streaming content servers, edge QAMs, and video encoders to grow to $1.2 billion by 2015, driven by:
    • Telcos and cable operators expanding VOD and streaming content server capacity to deliver targeted advertising, on-demand, start-over, and RS-DVR services
    • Satellite operators investing in MPEG-4 encoders to expand their channel lineups and offer more high definition (HD) and 3DTV content

REPORT SYNOPSIS
Infonetics' quarterly Video-on-Demand, Encoder, and Edge QAM Equipment and Video Subscribers report (formerly Cable, Satellite, and IPTV Video Infrastructure and Subscribers) provides worldwide and regional market share, market size, analysis, and forecasts for telco IPTV, cable video, and satellite video subscribers and the following hardware: VOD and streaming content servers, SD and HD MPEG-2 and MPEG-4 video encoders, and linear, SDV and VOD/unicast edge QAMs. Vendors tracked: Anevia, ARRIS, Cisco, Concurrent, Envivio, Ericsson, Harmonic, Huawei, Motorola, OptiBase, SeaChange, Technicolor (Thomson), UTStarcom, ZTE, and others.

SALES

RELATED AND UPCOMING VIDEO MARKET RESEARCH
Download report prospectuses, tables of contents, highlights, etc., at http://www.infonetics.com/login.

Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

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