ABI: Content owners buying gear to bypass pay TV

Video encoder/transcoder vendors are tapping a new market of customers: content owners who are buying their own equipment to circumvent pay TV operators and deliver their services directly to consumers, ABI Research said.

In findings that are part of ABI's "Cloud Video and Video Hardware Research Service" report, the researchers called out HBO, Disney/ABC and Fox as "customers for video encoders and transcoders."

"Content owners will grow from 11 percent of the total encoder and transcoder market in 2012 to 17 percent in 2017, having already passed the importance of Telco operators for use in traditional IPTV platforms," Sam Rosen, practice director at ABI Research, said in a press release. "Their role in distribution stems from both authenticated access offered as part of a retransmission agreement with a classical Pay TV operator, but will also increasingly include advertising supported free-to-wire services and some standalone content-owner bundles."

The new players are expected to help the encoder and transcoder markets grow to over $1.5 billion in 2017, led by the newly combined Arris/Motorola (Nasdaq: ARRS), Cisco (Nasdaq: CSCO), Ericsson (Nasdaq: ERIC), Harmonic and Thomson Video Networks, with Envivio leading the file-based multiscreen market and Elemental Technologies driving the live multiscreen market, the research said.

For more:
- ABI Research issued this press release

Related articles:
Encoding company Elemental ready for Olympian test this summer
Telestream rolls out fast transcoder for OTT delivery t o multiple screens