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Video on demand vendors struggling due to mobile devices

Traditional video on demand (VOD) operators are struggling as video consumption shifts towards tablets and smartphones, according to ABI Research.

ABI Research analysts said equipment and system vendors, such as Arris, SeaChange, Cisco, and Ericsson are expected to lose ground to cloud-oriented companies such as thePlatform and Synacor.

Research figures indicate that VOD vendors will see less than 30 percent growth over the next five years, while content management system (CMS) vendors will achieve nearly 100 percent growth to seize half of the total VOD management market.

"VOD equipment and system vendors have adapted their systems to work on commoditised IT-grade hardware and are enabling multiscreen IP delivery to sit alongside classic set-top box delivery," said ABI Research practice director, Sam Rosen. "However, they have failed to adapt to syndicated workflows."

Classic VOD back-office systems are built around delivery to the TV via a set-top box, leveraging a single video format, a managed network, a modest number of business models (free, packaged, and pay per view), and a standalone hierarchical architecture.

Video content management systems, which resemble premium online video platforms (OVPs), have been used in a number of high profile operator multiscreen initiatives, including Comcast's X1 project, Liberty Global's Horizon architecture, and Telefonica's new Global Video Platform.


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