IPTV middleware "spending spree" predicted

June 25, 2008 - Worldwide spending on IPTV middleware will see healthy growth over the next few quarters, according to a new report from market research firm Infonetics Research, driven by growing number of service providers rolling out new IPTV networks or expanding their existing networks to support more subscribers.

The report, entitled "IPTV and Switched Digital Video Equipment, Services and Subscribers", adds that the market for IPTV and switched digital video (SDV) equipment is also getting a push from cable MSOs introducing switched digital video capabilities to their digital TV networks to free up bandwidth and offer more high-definition content.

"While most of the segments we track in the IPTV market are seeing consistent quarterly growth, IPTV middleware is going to be an especially interesting segment to watch," said Jeff Heynen, Directing Analyst for IPTV at Infonetics Research.  "We're expecting an IPTV middleware spending spree over the next few quarters because a lot of the early IPTV service providers are running into scaling issues with their off-the-shelf middleware. Those providers are going to have to replace their IPTV middleware with a more robust solution to replace or augment their first-generation deployments. Middleware issues are one of the main root causes of IPTV rollout delays, so early hiccups have to be addressed quickly."

The combined IPTV and switched digital video equipment market was found to have grown 12% in the first quarter of this month relative to the previous three months to reach US$1.3bn.  Worldwide IP set-top box revenue grew 10% by the same comparison, with Motorola continuing to lead the worldwide market in the first quarter of this year, although its closest competitors made "major inroads".  ADB was found to be current leader of the worldwide hybrid IP/over-the-air set-top box market.

Infonetics Research also forecasts that the number of IPTV subscribers will reach 93mn worldwide by 2011.