Service providers spy Cloud TV’s silver lining

Despite some sceptics seeing it as a fad, cloud-based TV delivery will be generating extremely healthy revenues within the next five years, according to US firm Multimedia Research Group.

While over-the-top (OTT) providers have been making use of cloud delivery for a while, the market for cloud services for pay-TV is just getting going, as operators gradually migrate away from legacy hardware and software and vendors scramble to meet this emerging demand.

The market is predicted by MRG to grow substantially from nearly US$ 120mn in 2013 to US$ 700mn by 2017, with cloud services from cable operators taking the majority, followed by satellite and then IPTV.

The market is expected to be driven by the move to multi-screen and TV Everywhere services, cable’s migration from QAM to IP video networks, and the capex/opex reductions that cloud-based delivery offers.

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