Global revenue from video-on-demand (VOD) and streaming content servers,
edge QAMs, and video encoders decreased 3.6 percent to $251 million in 2Q11
from 1Q11, according to Infonetics Research.

 

 

VOD and streaming content server sales grew 4 percent
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.

 

 

“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,” said Teresa Mastrangelo, directing
analyst for video at Infonetics Research.

 

 

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 percent.

 

 

Infonetics expects global revenue from VOD and streaming
content servers, edge QAMs, and video encoders to grow to $1.2 billion by 2015.
 

 

Telcos and cable operators are expanding VOD and
streaming content server capacity to deliver targeted advertising, on-demand,
start-over, and RS-DVR services.

 

 

Satellite operators are investing in MPEG-4 encoders to
expand their channel lineups and offer more high definition (HD) and 3DTV
content.

 

 

By Telecomlead.com Team
[email protected]