According to ACG Research, the $3.1 billion worldwide market for video infrastructure declined year-over-year in the second quarter "because of a general slowdown in service providers' capital expenses, accelerated competition and companies moving toward the cloud platform." Specifically, the firm said the worldwide market for set-top boxes dropped 1.9 percent from the first quarter and 17.1 percent year-over-year. The firm said the market for video packet infrastructure grew around 7 percent over the first quarter but fell 1.3 percent year-over-year.
"Video infrastructure continues to be a top priority for major enterprise organizations, especially with the advent of faster broadband Internet connections and Internet-connected mobile devices," said Meghna Zutshi, ACG Research's video technologies analyst. "Acquisitions and collaboration are in play to combine efficiencies of capex to deploy faster broadband, which is the future vehicle for content delivery and monetization. Traditional SPs [service providers] are moving pay-TV rapidly to OTT delivery model. Video content delivery on multiple screens, anywhere on any device, DVR with local content storage and playback capability and cloud DVR are driving the industry focus." Release