Over-the-Top Video and Content Delivery Networks Will Transform Video-On-Demand Provisioning
SCOTTSDALE, Ariz., July 14, 2009 -
Next generation video-on-demand technology—known as Content Delivery Networks (CDNs) and Data Centers—will dramatically change the business model and the user experience for video delivery services, reports In-Stat http://www.in-stat.com. CDN-provisioned Video-on-Demand (VoD) will allow content owners more control over their creations and provide viewers with more choices in programming and delivery methods.
“As Content Providers build or out-source their own data centers, they will be in charge of every aspect of their content,” says Gerry Kaufhold, In-Stat analyst. “We will see flexible, complex, and creative ways to derive every last penny out of every piece of content.”
Recent research by In-Stat found the following:
Over the next five years, the worldwide value of Content Delivery Network services will nearly double, to more than US $2 billion.
The Information Technology (IT) industry is aggressively driving forward with cost-cutting technologies that simplify storage, virtualized servers, and standardize networks.
Traditional TV and Subscription-TV Services need to migrate their existing “siloed” Video-on-Demand infrastructure to more efficient Data Center and CDN models.
Internet protocol networks that connect from Data Centers and CDNs to Final Mile networks provide a “lean” delivery system that can profitably support Advanced Advertising and more personalized video delivery experiences.
North America will remain the dominant geographic segment for CDNs through 2013. However, Europe and Asia Pacific will see significantly higher growth rates.
Adaptive Bit Rate Video approaches will permit IP-networks to deliver a high-quality User Experience at lower bit rates, and will cross over to TV-based services.
This research is part of In-Stat’s Multimedia Broadband Infrastructure service. By 2012, 92% of US households will be connected to Broadband, making the Internet the single most-widely available Content distribution system. Telephone companies, wireless carriers, TV networks, Internet Service Providers (ISPs) and Subscription-TV (Pay-TV) operators are making major investments to support Personalized Content services that use broadband. What happens on the Internet is shaping TV, and mobility is now a key growth area. The twin concepts of “the mobile Internet” and “computing in the cloud” are going to disrupt current business models because networks absolutely must inter-operate to be more efficient. Asset Management and Transcoding will be vital to move Content across an ever-growing range of devices that connect to a multitude of networks.
In-Stat’s MBI service provides vital insights about how competing service providers are extending their delivery capabilities across over-the-air, wired and wireless “final mile” networks to make Personalized Content the killer application. MBI sets up side-by-side comparisons among competing market segments and provides our opinions about how companies can succeed. MBI covers all geographic regions, keeping subscribers abreast of new developments or trends occurring anywhere in the world that may have an impact on their business.
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In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology and semiconductor vendors, infrastructure and device manufacturers, service providers and media companies worldwide rely on partnerships with In-Stat’s tenured, experienced staff and on our in-depth market intelligence to support critical business, product and technology decisions.
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