Video On Demand --VOD-- Market Showing Impressive Growth According To New Allied Business Intelligence Study
OYSTER BAY, N.Y.--(BUSINESS WIRE)--May 9, 2002--Video on Demand (VOD) is rapidly coming of age, with all major US cable operators having VOD offerings in multiple markets and looking to dramatically expand into additional markets in 2002 and 2003. By year end 2002 Allied Business Intelligence (ABI) estimates that 4.8 million North American households will be VOD-capable.
VOD gives cable operators a product offering that satellite operators cannot replicate. Increased revenue per subscriber and reduced churn are driving immense interest from cable operators.
"Cable operators are intent on using VOD to differentiate their offerings from those of satellite operators," said Navin Sabharwal, ABI Director of Residential & Networking Technologies. "VOD is evolving beyond simply Movies on Demand, and certain VOD offerings such as Subscription VOD, will become an instrumental component in digital tier service."
The ultimate goal of Everything on Demand (EOD) is creating a significant VOD media server market. The global equipment market is projected to grow from $108 million in 2001 to $186 million in 2002. Leading vendors such as SeaChange, Concurrent, Diva and nCube will face increased competition from Sun and SGI, and other computer industry players. SeaChange and Concurrent led the market in 2001 with market shares of 40% and 28% respectively.
Not just limited to the cable platform, VOD offerings are being launched by content aggregators while progressive telcos are looking at IP VOD over DSL. Satellite providers are piggybacking on personal video recorder (PVR) technology to offer Near VOD (NVOD).
ABI's new study "Video on Demand: Infrastructure Issues and Service Offerings" assesses the current state of the VOD market, and provides trends and forecasts for North American, European and Rest of World markets. The report examines the rollout of VOD in the context of digital migration from analog tier service, VOD capable households and service operator strategies. Particular focus is paid to the infrastructure and equipment needed to roll out VOD, especially the media servers.
Allied Business Intelligence Inc is an Oyster Bay, NY-based technology research think tank that publishes research and technology intelligence on the wireless, broadband, electronics, networking and energy industries. Details can be found at www.alliedworld.com or by calling 516-624-3113.
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Contact:
Allied Business Intelligence Inc, Oyster Bay
Navin Sabharwal, 516/624-3113, ext 20
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