MOUNTAIN VIEW, CALIF.—It’s a good time to be in video servers, according to
Frost & Sullivan. The market researcher said the global video and ad
insertion server market is on a growth trajectory of hitting $2.33 billion in
2019, up from $1.32 billion last year.
“Major sports events,
such as the Sochi Olympics in Russia and the FIFA World Cup in Brazil, are now
increasingly recorded in HD and ultra-HD. The consequent shortening of the
sales cycles for digital media technology is fuelling the uptake of digital
equipment, including video server systems,” F&S said.
Personalized video services are also driving demand for video servers, F&S
Digital Media Research Analyst Aravindh Vanchesan said.
“The advent of advanced capabilities such as pausing live TV and catching up
TV, networked personal video recorders and interactive advertising is widening
this global market scope,” he said.
F&S offered three predictions for the video server market: More vendor
consolidation, more vendor acquisition by content providers and digital
platforms cutting into TV ad dollars. The third phenomenon may negatively
impact video server demand, particularly from broadcasters, F&S said,
unless they can be convinced to go to a more regionalized or targeted
"As vendors look for opportunities in this intensely competitive space,
mergers and acquisitions will gain pace," Vanchesan said. "While the
video server market witnessed significant consolidation among vendors over the last
five years, the highly fragmented ad cable segment, as well as the
telecommunication and broadcast segments, will witness strong M&A activity
during the forecast period.”
Companies interviewed for the F&S research included Avid, Anevia,
Arris/Motorola, Cisco/Arroyo/NCS, Concurrent Computer, EVS, Edgeware,
Espial/Kasenna, Grass Valley, Harmonic, Imagine Communications, Quantel,
SeaChange/XOR, UTStarcom and 360 Systems.