IPTV and video equipment and service markets hampered by slowing subscriber growth

Tuesday, January 5th, 2010 
Infonetics Research logo

CAMPBELL, CA — Market research firm Infonetics Research published three video-related market share and forecast reports: ‘Video Infrastructure and Subscribers’, ‘Set-Top Boxes and Subscribers’, and ‘Video Services and Subscribers’.

Analyst Note

“The growth pace slowed for new video service subscribers and fewer existing subscribers upgraded to premium services, two unifying trends defining the IPTV and video market in the third quarter. Holiday shopping and new purchasers of HD TV sets will likely result in an up-tick in premium service upgrades, but subscriber growth across the board will be tepid until macroeconomic conditions improve,” cautions Jeff Heynen, Infonetics Research’s directing analyst for broadband and video.

Market Highlights

  • Worldwide set-top box (STB) revenue dropped 6% in 3Q09 from 2Q09, due to lower subscriber growth, a decrease in purchases of add-on STBs by subscribers with multiple televisions, and operators looking to replenish their inventories
  • Motorola is the worldwide set-top box market share leader, followed by Cisco Systems and Pace plc
  • Worldwide revenue for all video infrastructure segments declined quarter-over-quarter, including VOD and streaming content servers, video encoders, IPTV middleware/content delivery platforms, video content protection software, edge QAMs, digital cable middleware, and satellite video middleware
  • However, combined revenue for all video infrastructure segments is up 90% year-over-year, and quarterly growth is expected to pick up, led by VOD and streaming content servers, video encoders, and edge QAMs
  • Worldwide revenue derived by service providers and cable companies for IPTV, cable video, and satellite video services is forecast to grow to $234 billion in 2013
  • The biggest threat to revenue growth will be online (or “over-the-top”) viewing, which allows users to stream programming delivered over the Internet via sites like Hulu and YouTube, and to aggregate programming via services such as Boxee.

Report Synopses

Infonetics’ quarterly set-top box report provides market size, market share, and forecasts for telco IP STBs (pure IP, hybrid IP/over-the-air, and hybrid IP/QAM STBs), digital and hybrid IP/QAM cable STBs, satellite STBs, and OTT (over the top) media servers. STBs are further broken out by feature: DVR and high definition (HD). Telco IPTV, cable video, and satellite video subscribers are also tracked in the report. Market share is provided for ADB (Advanced Digital Broadcast), Cisco, Coship, Dasan, Echostar, Huawei, Jiuzhou, Motorola, Netgem, Pace, Sagem, Samsung, Sumitomo, Thomson, Yinhe, and others.

The quarterly video infrastructure report provides worldwide and regional market share, market size, and forecasts for telco IPTV and cable video equipment, including VOD and streaming content servers, video encoders, IPTV middleware and content delivery platforms, video content protection software, and edge QAMs. Market share is provided for Alcatel-Lucent, ARRIS, BitBand, Cisco, Concurrent, Edgeware, Envivio, Ericsson, Espial, Harmonic, Huawei, Microsoft, Motorola, Nokia Siemens, OptiBase, SeaChange, Tandberg TV, Thomson, UTStarcom, ZTE, and others.

The biannual video services report provides worldwide and regional revenue and subscriber market size and forecasts for telco IPTV services (pure IPTV, hybrid IPTV/over-the-air, and hybrid IPTV/QAM), basic and digital cable video services, and satellite video services. The report also provides service provider market share in North America and in EMEA for total video services, telco IPTV video services, cable video services, and satellite video services. Market share is tracked for AT&T, Bell Canada, Cablevision, Canal Digital, CanalSat, Charter, Comcast, Cox, Deutsch Telekom, Digiturk, DirecTV, Dish Network, France Telecom, Illiad, Kabel Deutschland, KPN, MTS Allstream, Numericable, SaskTel, Shaw, Sky, SureWest, Telefónica, Time Warner Cable, UnityMedia, UPC Broadband (Liberty Global), Verizon, Virgin Media, and many others.

All three reports provide in-depth market analysis, and track the following regions: North America, EMEA (Europe, Middle East, Africa), Asia Pacific, Central and Latin America.