Video infrastructure market to grow 7 percent per year

Telecom Lead India: Video infrastructure market generated
$32 billion revenues for technology vendors in 2011.

 

The revenue is likely to grow by over 7 percent per year
to reach $45 billion by 2016.

 

Revenues from client hardware and software segment
(comprised primarily of set-top boxes, residential gateways and associated
software) will remain relatively flat at around $14 billion per year.

 

Content management and distribution (comprising content
delivery networks, media data centers and content management related software)
will become a $23 billion market by 2016.

 

Revenue from professional services related to video
infrastructure will also show strong growth, while the content acquisition and
preparation segment will grow by a steady 5 percent per year.

 

Two big trends – transformation of a relatively mature
pay-TV market and a surge in OTT services will drive the significant growth.

 

The number of pay-TV subscribers worldwide will grow
steadily.

 

The number of digital pay-TV subscribers will reach over
900 million by 2016.

 

IP will have a major impact on pay-TV networks, which
will continue evolving towards data centers and cloud-centric architectures.

 

On the OTT side, the boom in accessing free content will continue
to drive huge increases in traffic while generating little revenue for service
providers, but at the same time paid OTT services will account for an
ever-larger proportion of the revenues of pay-TV operators, which will in turn
drive investment in technology that is able to support OTT, according to Jeremy
Duke, Synergy Research Group’s founder and Chief Analyst.

 

editor@telecomlead.com

 

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