Report: VoD fueling aggressive server spending

Cable operators and telco service providers are in a fierce battle to provide video-on-demand and "both continue to spend furiously to add video-on-demand and streaming content server capacity," according to a report developed by Infonetics Research analyst Jeff Heynen.

The report concludes that operators are investing in non-traditional video delivery sources for VoD even as they spend less on more traditional forms of linear video infrastructure. While video infrastructure revenue decreased 11 percent to $2.5 billion in 2009, VoD and streaming content server revenue increased 60 percent from 2008 and is expected to continue to climb, the report said. 3D TV, it said, might go up but it won't affect how operators spend their money.

As almost an addendum, the report concluded that Motorola is still the worldwide set-top box maker followed by Cisco and Pace, and that worldwide set-top box revenue grew 7 percent in the fourth quarter to offset a "dismal" third quarter.

For more
- see this news release

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