Wednesday, August 29, 2012

#MARKETS: "Video Delivery Tops $2 Billion"

Video over the Internet has been of growing importance since YouTube debuted, but those were just shorts. Now with an increasing number of consumers turning off the TV, or rather connecting it to the Internet for watching movies and other longer content, the demand for video deliver platforms to provide all the needed bandwidth has skyrocketed to $2 billion and will grow to $4 billion in five years, according to ABI Research: R. Colin Johnson

$2 Billion Video Delivery Platforms Market Set to Double by 2017: ABI Research

Here is what ABI Research says about video deliver platforms:TV Everywhere and Over-the-Top (OTT) video, including Comcast Xfinity, HBO Go, Netflix, iPlayer, and Sky Go are growing rapidly. Making this possible are several groups of companies responsible for video delivery and management. The companies, including online video platforms (OVPs), managed video platforms (MVPs), content management systems (CMSs), and content delivery networks (CDNs) are all growing at impressive rates. In 2012, revenues for video platforms distributing video on behalf of media & entertainment companies (including cable & satellite distributors) worldwide will reach $2.1 billion, and will grow to over $4 billion in 2017.

Well-known CDN, Akamai, has a commanding lead of the video delivery market, with about $475 million in 2011. CDNs generally are responsible for finding optimal routes for the video, and storing copies close to consumers to ensure a high quality of delivery. KIT Digital, suffering through serious growing pains in early 2012, leads the market for content management systems with nearly $175 million video delivery revenues from media & entertainment companies in 2011. Brightcove is the largest OVP with $64 million in 2011 media & entertainment revenues. Synacor, who primarily hosts websites for Cable MSOs, leads out the MVP market with nearly $91 million in 2011 revenues.

These findings are part of ABI Research's Video Delivery Hardware and Platforms Research Service, which includes Research Reports, Market Data, Insights, and Competitive Assessments. In addition to tracking the growth and dynamics of CDNs, OVPs, CMSs and CDNs, this service tracks video encoders and transcoders, video servers, VOD hardware, and CDN equipment.
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