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Home > Computers and Information Technology > Media & Internet > Cable/Television & Broadcasting
The Video Service Infrastructure Landscape Rife with Consolidation, Innovation and Complication
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| Published Date:
May 2007
Published By:
Yankee Group
Page Count:
10
Order Code:
R388-2502
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The traditional video experience is rapidly advancing, no longer serving as a one-directional stream of broadcast signals, but a bidirectional environment made up of analog, digital, HD, VoD, and much more that makes the operators’ networks much more complex. Although video grooming, middleware, and VoD solutions are nothing new to the marketplace, the level at which operators are investing in these solutions and smaller vendors are being acquired by larger players raises the importance of the video service infrastructure (VSI) market.
With the VSI market’s profile rising quickly, two major vendors have shown the evolutionary path of video infrastructure: Motorola and Cisco. While Motorola has been in the video business since its acquisition of General Instruments in 1999, it was not until the acquisition of Scientific Atlanta did Cisco fully move into the VSI space.
The competitive landscape will continue to consolidate as larger vendors move toward building an end-to-end solution for both IPTV and cable systems. Acquisition strategies proved to be the best choice up to this stage, but as Motorola and Cisco look forward, organic growth and investing in the acquired technologies will prove more important than continuing along the M&A path as the primary means to portfolio development.
Video is at the forefront of operators’ minds. To keep up with the content race and the multi-platform video environment, service providers will increase interactivity and functionality of their video offerings. In turn, this will enhance the user experience, which is a key component of driving new revenue streams and reducing churn. Accordingly, the VSI market is continuously evolving to make the video system platform neutral, bandwidth efficient, interactive and innovative.
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