Recent research by In-Stat said that the telco TV headend equipment sector will undergo a substantial growth spurt over the next five years. The drivers of that growth include the demand for high-definition content, the expansion of video channels and the continued adoption of on-demand services.
The maturation of the various technologies and services will allow telco service providers to pursue targeted advertising and converged service business models, according to In-Stat.
“For operators to generate significant profitability from telco TV and related video services, they must find ways for the network to add value,” says Keith Nissen, In-Stat analyst. “This will dictate finding solutions to the challenges faced with personalized advertising, converged video services, and ultimately the integration of network and Web-based applications.”
Recent research by In-Stat included the following:
- The telco TV headend equipment market will grow to more than $700 million by 2012.
- The upgrade to MPEG-4 encoding was strong during 2007 and 2008.
- Increasingly, headend functionality will be distributed to the edge and access network.
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