Cable / Telecom News

Headend companies loving the telco TV boom

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WITH MORE AND MORE of the world’s telcos adding subscribers and services, the companies making the headends which deliver the video signals are enjoying a boom, says research firm In-Stat.

"As more headends are built, the market for broadcast TV content-processing equipment will turn from newly built headends to headend upgrades," said Michelle Abraham, In-Stat analyst, in a release. "Many of these upgrades will be the addition or replacement of encoding equipment as more channels are added and encoding technology improves. The launch of new HD channels will be a driving factor for additional encoding equipment."

The research also found:

* The worldwide telco TV headend market will reach US$732 million in 2011.
* Broadcast content processing equipment revenue will stagnate, while middleware, content protection, and on-demand content will continue to rise.
* A video-on-demand (VOD) service has become a requirement for many telcos when they deploy telco TV, which has improved the market for on-demand equipment vendors.

www.in-stat.com