Technology Behemoths Eye the IP -Based Video Market, Observes ABI

Last week`s ITU conference in Geneva demonstrated that the telecommunications companies and broadband providers have more viable choices than ever before to compete against cable`s `triple play` of video, voice and data.

OYSTER BAY, N.Y. - - October 22, 2003 - - Last week's ITU conference in Geneva demonstrated that the telecommunications companies and broadband providers have more viable choices than ever before to compete against cable's "triple play" of video, voice and data. The Internet Protocol (IP) set -top box (STB) market, still small compared to the size of the digital cable STB market, is ready to take off. Technology research firm ABI estimates that the market for IP STBs will grow at a rate 6 times faster than that for digital cable STBs in the next 3 years, worldwide.

IP -based video delivery has all the right ingredients in place to become mainstream and compete against the incumbent cable and satellite providers. "Intel and Microsoft, the two biggest bellwethers in the technological arena, are currently expressing interest and offering products to target the IP -based video distribution market," explains Vamsi Sistla, ABI senior analyst. "With this, the telco and broadband providers are bound to see the light at the end of the tunnel that started with Internet streaming more than 5 years back - - with rudimentary data rates and a broadband subscriber base many times less than present date numbers."

Unlike the previous IP -based video services, the present generation of services and offerings focus on the TV instead of the PC as the delivering platform. It has taken a good number of years for the industry to realize that the PC can neither overshadow TV's positional advantage - - nor permanently distract its loyalists.

ABI's new study, "The Rise of IP Set Top Boxes: Broadband Video, Technologies and Market Forecasts," focuses on the rise of broadband video equipment and service markets; possible service models, IP STBs features and trends, broadband VOD (video on demand) service offerings, and advanced digital services are discussed in detail. This report also addresses the growth rates of cable VOD vs. broadband VOD markets, worldwide, as PVR (personal video recording), VOD and PPV (pay per view) will play significant roles in the success of broadband video markets in the future. Detailed worldwide shipments, ASP and revenue forecasts for 2002 through 2008 are provided.

About ABI
ABI is a N.Y. -based technology market research firm founded in 1990. ABI publishes market research and technology intelligence on the wireless, automotive, electronics, networking and energy industries. Details can be found on the web at or by calling 516 -624 -3113.

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