The Current State of Broadcast TV

Broadcast and streaming video equipment income is said to reach $2.3 billion by 2018, according to Infonetics Research, an IHS company. Although on the whole, broadcast and streaming video equipment revenue declined 4 percent to $810 million in the first half of 2014, said Infonetics Research.

In the first quarter of 2014, sales of video-on-demand (VOD) playout servers rose by 20% as firms in places such as China and areas in the Middle East continue to push expenditure within the industry.

Content delivery network (CDN) edge server income is expected to grow at a 14% CAGR (Compound Annual Growth Rate) from 2013 to 2018, and multiscreen transmission encoders are anticipated to grow reasonably too.

Regardless of the reduced development of broadcast equipment in the first half of 2014, streaming video and broadcast equipment income for the full-year 2014 is said to also grow slightly. This is predicted to be due to the emerging 4k displays and compatible equipment which will be needed to future-proof video broadcasting equipment and keep them up to date with consumer displays. Though at the moment, businesses are also believed to be holding off for a little while until the best reputable brands emerge in this very competitive market.

“The cost of encoding and transcoding platforms continues to come down, pressuring video and broadcast equipment revenue as pay-TV providers move to generic hardware platforms and, ultimately, network functions virtualization rather than dedicated platforms,” said Jeff Heynen, who is principal analyst for broadband access and pay TV at Infonetics Research.

“This is a long-term shift that will keep video revenue from growing more significantly, despite the fact that pay-TV providers must fundamentally alter their video processing environments to support linear, over-the-top (OTT) and multiscreen content that continues to grow exponentially,” Heynen also added to his previous comments.

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