Delivering on the Promise of an Any Screen World
A variety of trends are driving service providers to consider advanced content delivery architectures that promise to ease the challenges of reaching new devices, improve system scalability, lower operational costs, and speed the launch of innovative services. The goal is to become more competitive in the video services marketplace; a market which is highly dynamic and features a host of emerging competitors. The consumer driven and technology trends that entice companies to enter the video services market also present opportunities for traditional service providers to increase their revenues and expand their subscriber base.
These trends include:
An Explosion in the Number of Video Capable Devices
Worldwide shipments of internet connected consumer electronics devices, a category including connected TV, video game consoles, Blu-ray players, and IP set-top boxes, will surge to 503.6 million units in 2013, up from 161 million in 2010. With projected shipments of tablet computers reaching 66.9 million units in 2011, an increase of more than 260 percent from the prior year, an unprecedented number of people now can access video services on-the-go. This enables consumers to extend the amount of time they spend watching video programming and provides operators with the opportunity to promote new revenue generating services to consumers.
The Demand for and Availability of Growing VOD Content
With revenue from DVD sales sliding approximately 40 percent from its peak and box office figures down 20 percent in 2011, content studios are looking at alternate ways to boost revenue. Studios have begun to release more content to VOD service providers to off-set declining revenues in other parts of their business. In addition, the success of services like Netflix and Amazon demonstrate that consumers will pay for increased content variety, generating interest in archived content libraries. In sum, storage expansion represents a challenge that will stress legacy VOD server architectures and present opportunities for tiered storage and content delivery networks.