Over-the-Top Video and Content Delivery Networks Will Transform Video-On-Demand Provisioning

Next generation video-on-demand technology—known as Content Delivery Networks (CDNs) and Data Centers—will dramatically change the business model and the user experience for video delivery services, reports In-Stat CDN-provisioned Video-on-Demand (VoD) will allow content owners more control over their creations and provide viewers with more choices in programming and delivery methods.

As Content Providers build or out-source their own data centers, they will be in charge of every aspect of their content. We will see flexible, complex, and creative ways to derive every last penny out of every piece of content.

Recent research by In-Stat found the following:

  • Over the next five years, the worldwide value of Content Delivery Network services will nearly double, to more than US $2 billion.

  • The Information Technology (IT) industry is aggressively driving forward with cost-cutting technologies that simplify storage, virtualized servers, and standardize networks.

  • Traditional TV and Subscription-TV Services need to migrate their existing “siloed” Video-on-Demand infrastructure to more efficient Data Center and CDN models.

  • Internet protocol networks that connect from Data Centers and CDNs to Final Mile networks provide a “lean” delivery system that can profitably support Advanced Advertising and more personalized video delivery experiences.

  • North America will remain the dominant geographic segment for CDNs through 2013.  However, Europe and Asia Pacific will see significantly higher growth rates.

  • Adaptive Bit Rate Video approaches will permit IP-networks to deliver a high-quality User Experience at lower bit rates, and will cross over to TV-based services.

This Market Alert is drawn from the In-Stat research,   CDNs and Data Centers to Usurp Video-on-Demand (#IN0904016MBI), which covers the worldwide market for CDNs, data centers, and video services. It includes:

  • Forecasts of worldwide and regional CDN sales through 2013.
  • Analysis of new business model options.
  • Discussion of CDN and Data Center technology and their implications for content providers, service providers, and consumers.
  • Brief profiles of vendors including: Akamai, Limelight Networks, DG Fastchannel, CDNetworks, Level 3, Cotendo, Internap, Highwinds CDN, Signiant, Cisco, Juniper Networks, Alcatel/Lucent, Ericsson, Adobe Systems, Microsoft, Apple, Real Networks, thePlatform, Harris Broadcast Communications, Thomson Technicolor, Ascent Media, Intel, Inlet, Envivio, Concurrent, Edgeware and Verivue.
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The price is $2,995 (US).

This research is part of In-Stat's Multimedia Broadband Infrastructure service. By 2012, 92% of US households will be connected to Broadband, making the Internet the single most-widely available Content distribution system. Telephone companies, wireless carriers, TV networks, Internet Service Providers (ISPs) and Subscription-TV (Pay-TV) operators are making major investments to support Personalized Content services that use broadband. What happens on the Internet is shaping TV, and mobility is now a key growth area. The twin concepts of “the mobile Internet” and “computing in the cloud” are going to disrupt current business models because networks absolutely must inter-operate to be more efficient. Asset Management and Transcoding will be vital to move Content across an ever-growing range of devices that connect to a multitude of networks.

In-Stat's MBI service provides vital insights about how competing service providers are extending their delivery capabilities across over-the-air, wired and wireless “final mile” networks to make Personalized Content the killer application. MBI sets up side-by-side comparisons among competing market segments and provides our opinions about how companies can succeed. MBI covers all geographic regions, keeping subscribers abreast of new developments or trends occurring anywhere in the world that may have an impact on their business.

Related In-Stat research:

Web-To-TV Video Changes Everything

US TV Viewer's Response to Economic Turmoil

Monetizing the Internet Using Web 2.0 Business Models

The US Market for Multi-Screen Services

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