MARKETS FOR MULTIMEDIA BROADBAND SERVICES

VOD & Streaming Drive Growth For Digital Media Servers

SCOTTSDALE, Ariz., May 21, 2001 - The worldwide annual dollar value of Digital Media Servers will top $1.2 Billion (US) during 2001, and expand to surpass $4.4 Billion (US) during 2005, according to Cahners In-Stat Group (www.instat.com). The high-tech market research firm finds that two key applications are driving the growth of this rapidly expanding market: Video-on-Demand (VOD) and Streaming On The Internet.

"While each application area is growing independently, Broadcast-related Digital Media Server solutions have a significant long-term growth advantage over the streaming media products," says Gerry Kaufhold, Principal Analyst with In-Stat's Multimedia Broadband Services Group. Over the long term, In-Stat expects that streaming will migrate upwards to become true video. Kaufhold continues, "At this time we expect to see the Broadcast-related companies extending their reach downward and beginning to dominate the market for all Digital Media Server applications."

In-Stat has also found that:

• The "other" segments of the Digital Media Server market will grow gradually from about $746 million (US) in 2001, up to about $1.7 Billion (US) in 2005.
• Currently, Internet Streaming solutions represent the fastest growing segment of the market, but, by 2005, the Video-on-Demand server segment will be on a strong growth trend and will surpass Internet Streaming sometime very soon after 2005.
• During the five-year forecast period, nearly 500 thousand Digital Media Servers will ship cumulatively worldwide.

The report, VOD & Streaming Drive Growth For Digital Media Servers (#MB0103SM) provides insights and forecasts for the market for Digital Media Servers.

To purchase this report, or for more information, please contact Matthew Woods at 617.630.2139; mwoods@instat.com. The report price is $3,495 USD.

Related In-Stat Reports:

• Streaming Media Done Right: Internet Broadcasting Systems
• Video Equipment for Telephone Company Local Switches
• Streaming Media: The Internet Collides with Digital Television

Cahners In-Stat Group (http://www.instat.com) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

For more information, contact:

Gerry Kaufhold, Principal Analyst - Multimedia Broadband Services
Phone: 520.363.9752
Email: gkaufhold@instat.com

Kirsten Skedd, Marketing Manager
Phone: 480.609.4534
Email: kskedd@instat.com