Traditional and Pay TV Services Migrating Infrastructure to More Efficient CDN and Data Center Models

Traditional Video-on-Demand services, and traditional “siloed” video services currently use a great deal of proprietary, or industry-specific, equipment.   Market research firm, In-Stat sees traditional and pay TV service providers migrating to more efficient Content Delivery Networks (CDNs) and data center models based on server virtualization.  This migration enables content portability and will have a direct impact on equipment vendors, service providers and content owners.

Increasing usage of 'over-the-top' internet video is driving traditional TV service providers to launch TV Everywhere initiatives. The data center approach promises more flexibility to manage content for delivery to multiple device types, enabling service providers to offer any content, on any platform, in any location.

In-Stat believes next-generation on demand approaches increase content owner influence, and greatly expand the delivery options.  Among other impacts, content owners and service providers will need to re-negotiate licensing agreements that will reflect more flexibility and responsiveness to consumer demands.  The CDN trend will also drive a shift in the type of equipment and features that manufacturers provide to service providers to handle video delivery.

Recent research by In-Stat found the following:

  • Over the next five years, the worldwide value of Content Delivery Network (CDN) services will pass US$2 billion annually by 2011 and continue growing thereafter.

  • Barriers, such as digital rights management, competing encoding formats and standards, and restricted bandwidth remain a challenge to meet customers' new demands for flexibility in content use.

  • Adaptive Bit Rate Video approaches will permit IP-networks to deliver a quality User Experience at lower bit rates.

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 services 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, CD Networks, Level 3, Cotendo, Internap, Highwinds CDN, Signiant, Cisco, Juniper Networks, Alcatel/Lucent, Ericsson, Adobe Systems, Microsoft, Apple, Real Networks, Intel, Inlet, and Envivio.
For more information on this research or to purchase it online, please visit: or contact a sales representative:

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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