TELCO TV HEADEND equipment market will see "substantial" growth in the next five years, predicts new research from In-Stat.
The expansion of video channels, the introduction of HD content, and the continued adoption of on-demand services will position telco operators to pursue “highly-profitable” personalized advertising and converged services business models, the high-tech market research firm says.
"For operators to generate significant profitability from telco TV and related video services, they must find ways for the network to add value," says Keith Nissen, In-Stat analyst. "This will dictate finding solutions to the challenges faced with personalized advertising, converged video services, and ultimately the integration of network and web-based applications."
In-Stat also found:
* The telco TV headend equipment market will grow to over US$ 700 million by 2012.
* The upgrade to MPEG-4 encoding was strong during 2007 and 2008.
* Increasingly, headend functionality will be distributed to the edge and access network.
