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TV everywhere platforms for connected devices to drive video delivery in 2016

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By eeNews Europe

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The worldwide market for VOD equipment is forecast to grow at more than 3% annually, from $493 million in 2010 to $591 million in 2016, while the CDN Server market is expected to grow at 4.3% from $600 million to $774 million. The remainder of the total market is comprised of video servers and ad servers.

“The rapidly rising amount of video content is creating challenges for service providers,” says ABI Research practice director Jason Blackwell. “CDNs have historically focused on delivery between operator networks. However, to facilitate the rapid growth of video, operators are installing CDNs within the footprint of their own networks. Operators used to plan for very low concurrency rates of about 3% on their VOD systems, but increased content and use of these systems on new connected devices is leading concurrency rates to more than 20%.”

ABI Research senior analyst Sam Rosen adds, “Operators face a challenge when introducing new services. Time Warner Cable recently saw unprecedented demand for its TWCable TV in-home streaming iPad App, and had to scale back from 30 channels to 15 due to inadequate server capacity. Some forward-looking vendors have developed time-based licensing models to prevent this type of problem and to allow for peak-demand periods, such as sporting events, that would otherwise overwhelm the servers.”

ABI Research’s “Video-on-Demand, Video Server, Ad Server, Content Delivery Network Hardware” study covers worldwide markets for VOD hardware, video server hardware, ad servers and content delivery network hardware used exclusively within service provider or video delivery networks. It discusses the merging of managed and unmanaged delivery services, and the strategic implications of this trend, including business models, network architectures, peering agreements, and demand drivers for VOD.

Visit ABI Research at www.abiresearch.com


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