CONTENT COMPANIES are more and more using their in-house engineering and software capabilities to manage their digital assets, and create approaches that give them increased control, lower the cost of operation, and widen their revenue possibilities, says In-Stat.
In its research CDNs and Data Centers to Usurp Video-on-Demand, the market research firm says that this has created a shift towards content delivery networks (CDNs) and data center models based on server virtualization, a trend that 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,” said In-Stat analyst Gerry Kaufhold, in the press release. “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.”
Recent research by In-Stat also found the following:
– Over the next five years, the worldwide value of 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.
