Middleware & VOD Servers Poised for Growth

SEPTEMBER 7, 2006 – Based on over 470 IPTV Service Providers, MRG’s new IPTV Market Leader Report September 2006 ranks about 60 different IPTV vendors in four different regional markets and globally, grouped into six different IPTV product categories.

“Mergers and acquisitions continue to have a major impact on the market,” states Bob Larribeau, IPTV Program Director for MRG. “Tandberg’s acquisition of SkyStream and Motorola’s acquisition of Kreatel put both companies into leading positions; and the Alcatel/Lucent merger will have a similar effect.”

The report also identifies over 4.7million VOD-enabled households, meaning a significant improvement in the prospects for VOD server vendors.

The conversion of in-house IPTV Middleware packages to merchant packages is also having a strong effect on the IPTV software market. PCCW’s package marketed by its Galaxy subsidiary is now a leading package. Telefonica’s Middleware package (marketed by Lucent) is becoming another strong contender. Microsoft’s Middleware, however, continues to attract the closest scrutiny due to delayed rollouts at AT&T and Deutsche Telecom.

Companies such as Alcatel, ECI, Tandberg, Motorola, and Microsoft are well positioned in the large IPTV service providers that are poised for significant growth. Cisco and its subsidiaries also are beginning to show up in the ratings. These companies are expected to improve or strengthen their position in the IPTV market over time. However, these ratings will continue to change significantly as the market matures over the next couple of years.

By using a deeper ranking system than before, the report gives separate regional rankings to each company by product category, based on actual numbers of subscribers and video channels supported by that company’s product(s). In addition to current market position, companies’ growth prospects are ranked based on the number of installed base each company has in the 18 fastest-growing service providers in the 4 regions.

“The report is based on over 470 service providers globally, over 100 more than just six months ago,” states Gary Schultz, MRG President. “By deepening our rankings of suppliers in Middleware, Content Protection, VOD (Video-On-Demand) and Set-top-Boxes, we allow many more companies to identify their position in the global and regional markets than just the top five in each category.” Other product categories include Access and Video Headend.

The (56-page) IPTV Market Leader Report - September 2006 is available in printed format for $3,995.00 US; as a Departmental PDF license for $5,200.00 US; and is available free as part of MRG’s IPTV Tracking Service. For more information or to order the report, contact Rob Smith at 408-524-9767 or rsmith@mrgco.com

IPTV Market Leader Report - September 2006 Executive Overview