Classic video on demand vendors risk losing half the VOD market by 2018
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Classic video on demand vendors risk losing half the VOD market by 2018

The shift of video consumption to tablets and smartphones is causing operator requirements for video on demand (VOD) systems to change as vendors struggle to keep up with current generation needs, according to ABI Research.

Equipment and system vendors, such as Arris (including Motorola Home), SeaChange, Cisco, and Ericsson are expected to lose ground to cloud-oriented companies such as thePlatform, Synacor, and KIT Digital (expected to emerge from bankruptcy as Piksel), according to the research group (www.abiresearch.com). VOD vendors will see less than 30% growth over the next five years, while content management system (CMS) vendors will capture the market and see nearly 100% growth to seize half of the total VOD management markets.

Classic VOD back-office systems are built around delivery to the TV via a set-top box, leveraging a single video format, a managed network, a modest number of business models (free, packaged, and pay per view), and a standalone hierarchical architecture.

"VOD Equipment and system vendors have adapted their systems to work on commoditized IT-grade hardware and are enabling multiscreen IP delivery to sit alongside classic set-top box delivery," says ABI Research Practice Drector Sam Rosen. "However, they have failed to adapt to syndicated workflows."

Video content management systems, which resemble premium online video platforms (OVPs), have been used in a number of high profile operator multiscreen initiatives, including Comcast’s X1 project, Liberty Global’s Horizon architecture, and Telefonica’s new Global Video Platform.

 

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