ABI: Concurrent Video-on-Demand Streams to Reach 163 Million in 2011
December 29, 2006 // Published as a news service by IHS
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Traditional video-on-demand (VOD) services may not be growing at a particularly rapid pace, but the introduction of time-shifting, network personal video recorder (PVR) and mobile video will propel the demand for VOD technology as the number of concurrent, time-shifted streams of video grows rapidly.
In fact, concurrent VOD streams worldwide will grow from 1.67 million in 2005 to 163 million in 2011, according to new analysis from ABI Research.
"Simply put, the need for on-demand technology and concurrent usage of that technology will skyrocket over the next five years," said ABI Research principal analyst Michael Arden.
"The growing importance of that usage is reflected in a spate of corporate acquisitions this summer, all intended to add extra VOD capabilities to their purchasers' portfolios."
Cisco, increasingly positioned as a consumer premises equipment provider, added headend capabilities by acquiring Arroyo, which made news recently as the technology behind Cablevision's network PVR attempts.
Analysts said by acquiring Entone's VOD division, headend player Harmonic added an Internet protocol (IP)-based VOD platform that puts the company in a good position to take a larger share of the IP video market.
And Motorola announced it would be buying Broadbus Technologies, a move that will bring in a new customer base and allow Motorola to bridge its product line with the IP world.
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"The big issue is the number of concurrent video streams," said Arden. "In most networks today, they represent under 10% of customers. Once you start introducing new services such as time-shifted and 'start-over' video, and eventually network PVR, concurrency rates shoot up and VOD solutions become more important in the greater scheme of things. That's why the timing of these acquisitions is significant: it gives confirmation that VOD is no longer a niche market, and that these large companies plan on having VOD as a big part of their end-to-end video solutions."
Source: ABI Research.