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More consolidation ahead for TV middleware market

With Cisco buying NDS last year and Ericsson now rumoured to be buying Mediaroom from Microsoft, the TV middleware market is going through a major shakeup at the moment – and there is more to come, according to ABI Research.

Sam Rosen, practice director at ABI Research, predicts that two forms of consolidation will occur: firstly, hardware and software companies will come together to offer more of a service oriented approach, and secondly, acquisitions that bring together technologies required for the next generation TV offering will occur, such as TiVo`s acquisition of TRA for measurement technology.

At present about 70% of revenues within the middleware, conditional access (CAS), and digital rights management (DRM) markets come from the top five players (Cisco/NDS, Nagra, Microsoft, Motorola Home and Rovi), while a “significant” number of innovative startups account for around 20% of the market.

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