EPGs and metadata a bright spot in TV Middleware market

SCOTTSDALE, Ariz. — The traditional TV middleware market, which was relatively flat between 2010 and 2011, grew 11% through 2012 to reach $1.13 billion. During this period, more advanced forms of video software grew over 40% to reach $890 million dollars. Guide software, metadata, and technologies underlying DVR and Video on Demand have driven the growth of this advanced category.

“Now that pricing of the IP portfolio is largely settled, and the market has digested the Arris-Motorola acquisition and pending Ericsson-Mediaroom acquisition, we expect these companies to be the next targets”

Companies succeeding within the guide business include TiVo Inc., Rovi Corp., and ActiveVideo. “TiVo has been the most aggressive with multiscreen technology development while Rovi brings together the complex metadata challenge with guide experiences. ActiveVideo’s technology is very operational in nature, enabling operators to cost-effectively bring their technologies to legacy set-top boxes,” according to Sam Rosen, practice director at ABI Research.

TiVo recently settled most of its pending litigation, including that with Cisco Systems, Motorola (now Arris), and Time Warner Cable. All of these companies have managed both product licensing and patent portfolios to achieve their growth during this period. “Now that pricing of the IP portfolio is largely settled, and the market has digested the Arris-Motorola acquisition and pending Ericsson-Mediaroom acquisition, we expect these companies to be the next targets,” continued Rosen.

These findings are part of ABI Research’s Video SW Middleware and DRM Research Service.