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Frost & Sullivan See $1.5 Billion in Video Servers

MOUNTAIN VIEW, CALIF.: The video server market is booming, Frost & Sullivan says. The research firm anticipates the global market for video servers to reach $1.5 billion in 2016, up from $760 million last year. The growth in platforms--digital cable, satellite, IPTV--and play-out options such as video-on-demand, paused live TV, personal video recorders, HD content and interactive advertising add up to increased demand for video server technology, Frost & Sullivan said.

“Today, servers give users the freedom to achieve high processing power, real-time content streaming, and efficient networkability with various equipment,” said Frost & Sullivan Research Analyst Meghali Sharma. “In addition, servers are increasingly being used to add various application features, such as channel branding, integration of graphics, insertion of live inputs, and ad-hoc advertisements.”

Frost & Sullivan said the growth of Internet and mobile video distribution will affect the server market, as will sporting events this year and in 2012, along with the explosion of 3DTV technology. At the same time, continue cost declines for the hardware associated with video services will allow vendors to add functionality while keeping prices constant, the firm said.

“Video server vendors need to understand the dynamic needs of the media and entertainment industry, and establish highly-effective collaborative relationships with equipment vendors offering associated products for a complete infrastructure solution,” Sharma said.