57 Million Internet Set-top Boxes By 2012

Wednesday, August 12th, 2009
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MRG’s Global OTT Report Shows Internet Video Services Exceeding $11 Billion in 2012, and Internet Set-top Boxes (ISTBs) Reaching Over 57 Million

SAN JOSE, Calif. — A new global report from the Multimedia Research Group (MRG) shows how OTT (Over-the-Top) video services will offer new opportunities for IPTV & Cable Operators and media owners to expand their reach through TV-centric open Internet services. Revenues in 2012 should exceed $11 billion, with Internet Set-top Box (ISTB) penetration (including game consoles) exceeding 57 million. Besides cost containment practices, the report identifies what kinds of OTT video content consumers want (and will pay for), based on a global consumer survey done specifically for this report.

“The real question isn’t whether Service Providers (SPs) should implement OTT, as most analysts already agree,” states MRG Analyst Mike Galli. “The real question is how and with what results, which is why we did a ROI analysis for Tier-1, 2 and 3 IPTV SPs explaining the best practices, cost-loading and break-even points for several different configurations of OTT service.”

The report also disputes the belief that “smart TVs” (TVs with Ethernet ports) will replace ISTBs in the next five years, as predicted by some CE promoters. “ISTBs will continue to be strong players beyond 2015,” states MRG President Gary Schultz. “This is illustrated by the evolutionary path ISTBs must follow to stay ahead of the fast changing OTT business.” The report further asserts that many HD (High-Definition) TVs will rely on (external) ISTBs to provide the needed storage, hybrid-processing, progressive download, and EPG-processing capability at an affordable price to deliver HD content.

Also included is a review of test installations of ISTBs done in a typical home using over 9 platforms and services. Additionally, over 50 companies are profiled in the categories of “OTT Service Providers” (Amazon, Apple, Disney, FetchTV, VUDU, ZillionTV and others); “Platforms” (2Wire, Advanced Digital Broadcast [ADB], Netgem, Roku, TiVo Inc. and others); and “Content Delivery Networks (CDNs)” (Akamai, Abacast, Limelight, IP Vision, and others).

“OTT Video Services & Forecast–2008-2012: Best Practice, ROI, & ISTB Analysis” is 138 pages and is available in a printed English language edition for $2,995 USD, a PDF single-departmental license for $3,495 USD; and is available free as part of MRG’s IPTV Tracking Service. For more information, or a corporate license, or to order the report, contact Rob Smith at 1-408-453-5553 or rsmith@mrgco.com.