Conditional Access Technologies to Post Nearly $1.4 Billion in Annual Revenue by 2014

NEW YORK — In 2008 Conditional Access technologies earned revenue of nearly $1.3 billion worldwide and will continue to grow, adding nearly $105 million more in annual revenue by 2014, according to a new study from ABI Research. Cable generated the bulk of the revenue, followed by satellite and telco. This can be largely attributed to new deployments in the cable market and the momentum this segment has gained in regions other than North America where cable and satellite are mature markets.

“The recent and current financial crisis does not appear to be hurting Conditional Access and Digital Rights Management technology markets,” comments ABI Research industry analyst Zippy Aima. “The continuing explosion in digital entertainment production and consumption, combined with the expansion of new distribution methods such as over-the-top video and telco TV, will support steady growth in the technologies needed to protect that content.”

Other drivers include demand for secure high-definition content, and the ability to share content across multiple devices in a “connected” home.

While overall revenue shows a modest increase over the study’s forecast period, the major changes will be in the revenue share contributed by each of the three platforms, cable, satellite and telco TV. While the former two show slight, fluctuating growth, telco TV is the real engine of this market, showing approximately a 15% increase to 2014.

Some other factors may tend to inhibit the CA market, including excessive government regulation which slows growth, lack of compatibility between platforms, and consumers’ growing assumption that online content should be free.

ABI Research’s new study “Conditional Access and Content Security for Pay TV Markets” focuses on the role of Conditional Access technology in the pay TV market and the factors driving and restraining its growth. It discusses available solutions and profiles the vendors offering those solutions. It tracks pricing trends and provides market forecasts broken down by region and market segment. The report is part of the firm’s Digital Media Research Service, which also includes other Research Reports, Research Briefs, Market Data, ABI Vendor Matrices, ABI Insights, and analyst inquiry support.