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TV middleware market to exceed $2bn by 2020

TV middleware market to exceed $2bn by 2020

TV middleware market to exceed $2bn by 2020

New analysis from Frost & Sullivan estimates that the pay-TV middleware market will reach $2.03 billion by 2020, having earned expected revenues of $1.05 billion in 2014.

The study, Global Pay TV Middleware Market, covers the IPTV, cable, direct to home and digital terrestrial TV application segments.

“Factors favoring market growth include the increase in the deployment of hybrid models such as cable + IPTV, satellite + IPTV and terrestrial + IPTV,” explains Frost & Sullivan Digital Media Industry Analyst Hiral Jasani. “Moreover, the need for interactive pay TV middleware on secondary devices to offer managed experiences on unmanaged devices is lending impetus to the markets across North America, Latin America, Europe, the Middle East and Africa.”

Frost & Sullivan argues that while, subscriber churn and a high demand for over-the-top (OTT) subscriptions have put tremendous pressure on existing pay TV operator business models, more flexible consumption models are expected to come to the fore, fuelling the need for advanced pay TV middleware solutions globally.

“Pay TV middleware vendors will need to be extremely nimble and focus on providing agile solutions that allow service providers to compete with OTT services,” adds Jasani. “They must direct attention towards open source middleware, as this has proven to be a successful strategy for middleware vendors and operators alike.”

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