[October 17, 2012]

Infonetics Research: Video Infrastructure Market Rebounds in Q2; Satellite STBs Surge

Market research firm Infonetics Research released excerpts from 2 recent video reports, Video-on-Demand (VOD) and Encoder Equipment and Video Subscribers, which tracks equipment sold to telco IPTV, cable video, and satellite video providers, and Set-Top Boxes and Subscribers, which tracks IP, cable, satellite, and hybrid set-top boxes (STBs) and over-the-top (OTT) media servers.

ANALYST NOTE

"Thanks to a 7% increase in encoder spending by North American cable and satellite operators, the global video infrastructure market saw a return to growth in the second quarter," notes Jeff Heynen, directing analyst for broadband access and pay TV at Infonetics Research. "The market continues to be driven by cable and satellite operators upgrading their encoding infrastructure to support more high-definition channels and unicast video-on-demand content."

Heynen adds: "Meanwhile, satellite set-top boxes surged in Q2, with global shipments up 20% and revenue up 19% sequentially. The biggest growth is coming from the Asia Pacific region, particularly China, but growth is also strong in Latin America and North America, where DirecTV (News - Alert) and Dish Network are seeing sustained subscriber growth and renewed interest in higher-function STBs like Dish's Hopper."

VOD AND ENCODER MARKET HIGHLIGHTS

• The global video infrastructure market, including IPTV (News - Alert), cable, and satellite video infrastructure, totaled $199.5 million in 2Q12, up 5% from the year-ago 2nd quarter
• Telco IPTV, cable, and satellite subscriber growth continues unabated in Latin America and Asia Pacific:
  • There is sustained investment in Brazil to build up capabilities ahead of the 2014 FIFA World Cup and 2016 Summer Olympics
  • A national effort is underway in China to increase the availability of digital services in rural�provinces
• Huawei (News - Alert) and ZTE dominate the VOD and streaming content server market, together accounting for more than half of worldwide revenue in 2Q12
• The top 3 cable video service operators by subscribers are Comcast, Time Warner Cable, and Jiangsu Cable TV
• Many cable operators devote at least 2/5 of their total annual capex to set-top box upgrades

VOD AND ENCODER REPORT SYNOPSIS

Infonetics' quarterly VOD and Encoder Equipment and Video Subscribers report provides worldwide and regional market share, size, forecasts, analysis, and trends for telco IPTV, cable video and satellite video infrastructure and subscribers. Companies tracked: Anevia, ARRIS, Cisco, Concurrent, Edgeware, Ericsson, Harmonic, Huawei, Motorola, OptiBase, Thomson (News - Alert) Video Networks, UTStarcom, ZTE, others. To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp.

SET-TOP BOX MARKET HIGHLIGHTS

• The global set-top box market, including cable, satellite, IP and hybrid IP/DTT, totaled $3.6�billion in 2Q12, up 4% sequentially
• While revenue was up for satellite set-top boxes in 2Q12, it was down for both IP and cable�boxes
• 40% of all STBs shipped in 2Q12 had high-definition (HD) capabilities and 22% had DVR�functionality
• Apple TV is the most prominent over-the-top media server platform in North America and, increasingly, the world
• After 2 consecutive quarters of growth, cable STB revenue in North America declined�10%
• Despite a 2% drop in revenue from the previous quarter, Cisco (News - Alert) took the worldwide set-top box revenue share lead from perennial #1 Motorola

SET-TOP BOX REPORT SYNOPSIS

Infonetics' quarterly STB and Subscribers report provides worldwide and regional market share, size, forecasts, analysis, and trends for IP STBs, cable STBs, satellite STBs, hybrid IP/DTT, and OTT media servers, and video subscribers. Companies tracked: ADB, Amino, Cisco, Coship, Dasan, DVN, Echostar, Huawei, Humax, Jiuzhou, Motorola, Netgem, Pace, Sagemcom, Samsung, Skyworth Digital, Sumitomo, Technicolor, ZTE, others. To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp.

RELATED RESEARCH

• Latest Infonetics Video / Pay TV research brief: http://bit.ly/Rzq2DS
• IPTV operators turn up the heat with multi-screen TV, content discovery, social networking
• Operators name Cisco top dog in IP set-top boxes in new Infonetics survey
• Video infrastructure markets growing despite challenges; big year for multi-screen TV
• Cable still king of pay-TV, but satellite and IPTV poised for takeover
• Telcos on track to spend $75B per year on outsourced services by 2016; Huawei edges up
• Telecom capex spike expected in 2012; Asia is world's largest spender

UPCOMING RESEARCH

Download VIDEO/PAY TV report highlights, tables of contents, and prospectuses at http://www.infonetics.com/login, Infonetics' 2012 Research Calendar at http://bit.ly/zwjcRs, and Infonetics' 2013 Market Research Lineup at http://bit.ly/QT1CE8.

TO BUY REPORTS, CONTACT SALES:

N. America (West), Asia, Latin America: Larry Howard, larry@infonetics.com, +1 408-583-3335

N. America (East), Texas, Midwest: Scott Coyne, scott@infonetics.com, +1 408-583-3395

Europe, Middle East, Africa: George Stojsavljevic, george@infonetics.com, +44 755-488-1623

Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

ABOUT INFONETICS RESEARCH

Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics' brief About Us slides at http://bit.ly/QUrbrV.

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