The OTT broadcast and video streaming equipment market grew 5.6 percent worldwide last year thanks to increased spending on content delivery networks (CDNs.)
On the flip side, spending on contribution encoders and VOD playout servers declined last year, according to a recent report by Infonetics Research. Infonetics projected that the total market would top $2.5 billion in four years.
"We are very early in a long-term transition to software-based and SDN-controlled video processing, but we believe the shift will result in increased spending on both multi-screen encoders and content delivery network equipment, as pay-TV and over-the-top (OTT) providers begin purchasing these platforms to more efficiently process and distribute video content,” said Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.
The report also said that CDN platforms were evolving to support an increased number of OTT formats such as HTTP Live Streaming (HLS) and Microsoft Smooth Streaming.
Other highlights from the report included:
• Two of the strongest growing segments in the broadcast and streaming video market were CDN edge servers, which Infonetics expects to grow at a healthy 17 percent CAGR from 2013 to 2018, and multi-screen broadcast encoders, growing at an 8 percent CAGR
• Pay-TV providers are using a mix of platforms, from GPU-based devices to software only, to create massive and distributed encoding horsepower in the cloud—all managed centrally via software-defined networking (SDN) controllers
• Harmonic continued to lead the global broadcast and streaming video equipment market, although its revenue share decreased about one point while some competitors gained ground last year.