ABI: Alternate Modes of Content Distribution Drive Growth of Conditional Access Systems
July 15, 2008 // Published as a news service by IHS
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In 2007, the market for conditional access systems (CAS) was comprised of legacy vendors such as NDS and Nagravision, newer players such as Widevine and Verimatrix and new entries from giants such as Cisco and Sun Microsystems.
According to ABI Research, this robust competitive environment was one factor in the growth of the market as it surpassed $1 billion worldwide in 2007, but there are other key trends that will influence further development in the conditional access (CA) market.
Analysts said these key developments are being driven by the birth of alternate modes of content distribution, including Internet protocol television (IPTV) offerings from telephone companies.
"Extending access to content beyond the television adds to the revenue-generating capacities of service providers, while also offering flexibility to consumers," said Zippy Aima, ABI Research industry analyst.
"Content owners are looking at new ways to make content available to consumers and will take advantage of the 'Web 2.0' era. Though IPTV had a slow start, vendors see deployments not only in North America, but also in Europe and Asia."
In Asia, governments are enforcing the move toward digital transmission, analysts said. Meanwhile, in the U.S., the Federal Communications Commission (FCC) set a 2009 deadline for completing the transition from analog to digital. Since it is easier to copy and redistribute a digital signal, government bodies are also enforcing the use of CA technologies.
According to ABI Research, cable will continue to lead the pack through 2013, reaching revenues of $737 million by 2013. By that same time, telephone companies and satellite technologies will reach revenues of $558 million and $410 million, respectively.
Digitization of content and the birth of new business models to distribute that content have broadened the horizon for all companies tied to the entertainment business, analysts said. From content creation to delivery, vendors across the digital media value chain are reaping the benefits of the evolution of the marketplace.
Source: ABI Research.