VOD Servers Up, Video Encoders Down

Infonetics Research reports that global revenue from VOD and streaming content servers, edge QAMs and video encoders decreased 3.6% to $251 million in 2Q11 from 1Q11. The sequential decline was due mainly to a contraction in video encoder spending across all ope...

Infonetics Research reports that global revenue from VOD and streaming content servers, edge QAMs and video encoders decreased 3.6% to $251 million in 2Q11 from 1Q11. The sequential decline was due mainly to a contraction in video encoder spending across all operator segments. Year-over-year (2Q10 to 2Q11), the video encoder segment is up 6%.

VOD and streaming content server sales grew 4% sequentially, driven by operators racing to add on-demand content for their subscribers to counter growing competition from over-the-top (OTT) video services. In 2Q11, benefitting from strong shipments into China, ZTE holds on to the lead it took from Huawei in the global VOD server market in 1Q11; Huawei is No. 2, and Concurrent is No. 3.

Infonetics expects global revenue from VOD and streaming content servers, edge QAMs and video encoders to grow to $1.2 billion.
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