In-Stat: SDV Will Give Cable Operators a Big HD Boost

Switched Digital Video (SDV) technologies is helping cable operators keep up the pace with expanding HDTV and super-high-speed data services, reports In-Stat, the high-tech market research firm. SDV distributes video more efficiently over cable TV coaxial lines, enabling cable operators to better compete with DBS and telco TV rivals

“Initial deployments will create a strong market for upgrades, which will become dominant in 2012,” says In-Stat analyst Gerry Kaufhold. “The strategic key to success for vendors will be winning early deployments, because follow-on upgrades will be lucrative. World-class professional services, staff training, and the ability to remotely monitor and repair SDV installations will be the winning formula.”

Recent research by In-Stat has found that the market for SDV equipment, software, and services is expected to grow from about $165 million during 2008, up to more than $1 billion in 2012. North America will be the biggest market, with Asia coming on strong later. Large cable TV systems will drive early growth for SDV. Medium cable TV systems will become an important segment as early as 2009. Even small cable TV systems will turn to SDV in large numbers after 2010.

In-Stat has published its research in a report, “Worldwide Switched Digital Video for Cable TV.” The report estimates the annual costs for new and upgraded SDV installations, the expected to use SDV, and the annual value of the SDV market in four geographic regions.