Faced with increased competition, pay-TV operators are investing in more adaptive bit rate gear and transcoders, according to a recent report.
More transcoders are needed to prepare linear broadcast and file-based content for multi-screen distribution to subscribers, according to the report by Infonetics Research.
Projected by Infonetics to grow by more than one-third by 2017, adaptive bitrate (ABR) origin and packaging servers are key components in the efficient delivery of over-the-top (OTT) content, especially as more pay-TV providers and content delivery networks move to ABR streaming.
“With competition and content heating up, pay-TV providers are transitioning their traditional, broadcast-focused video processing environments to ones that can ingest, process, deliver, and decode video content from multiple sources,” said Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research. “At the same time, content owners and studios are also adjusting their workflow and video output to support multi-screen and streaming services.
“The net result of these transitions is steady investment in the platforms necessary to optimize video streams for a growing list of end devices and formats.”
The global broadcast and streaming video equipment market topped $2 billion in 2012 and is forecast by Infonetics to grow about 12 percent this year.