Content Delivery Networks (CDNs) and data centres could outstrip Video-on-Demand (VOD) as content companies move to manage their digital assets and create approaches that give them increased control, lower the cost of operation, and widen their revenue possibilities, says a report from In-Stat.
At minimum, the next generation VOD technology will “dramatically change” the current business model and the user experience for video delivery services, the hi-tech research says in a research report called CDNs and Data Centers to Usurp Video-on-Demand.
“As Content Providers build or out-source their own data centers, they will be in charge of every aspect of their content,” said In-Stat Gerry Kaufhold, in the press release. “We will see flexible, complex, and creative ways to derive every last penny out of every piece of content.”
Recent In-Stat research also found that:
– Over the next five years, the worldwide value of CDN services will nearly double, to more than US $2 billion;
– The Information Technology industry is aggressively driving forward with cost-cutting technologies that simplify storage, virtualized servers, and standardize networks;
– Traditional TV and subscription-TV services need to migrate their existing “siloed” VOD infrastructure to more efficient data centre and CDN models;
– Internet protocol networks that connect from data centres and CDNs to ‘Final Mile’ networks provide a “lean” delivery system that can profitably support advanced advertising and more personalized video delivery experiences;
– North America will remain the dominant geographic segment for CDNs through 2013, however, Europe and Asia Pacific will see significantly higher growth rates;
– Adaptive bit rate video approaches will permit IP-networks to deliver a high-quality user experience at lower bit rates, and will cross over to TV-based services.
