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Friday, March 25, 2011

Video Infrastructure Market Grows 11% in 2010

The Service Provider Video Infrastructure (SPVI) market grew 8% sequentially in Q4 2010 and grew 6% y-y. Much of the increase in Q4 was the service providers’ “budget flush,” while year-over-year growth was more modest.

STB boxes, overall, were up 7%, though down nearly 2% from last year. Cable set top box (STB) revenues were up 4%, though Q4 was down 4% from Q4 2009. IPTV STBs were up 16% sequentially and 1% y-y. Growth in the Video Packet Infrastructure segment was fueled mostly by the continued deployment of Carrier Ethernet as a replacement for BRAS. CMTS revenues grew approximately 3% sequentially and were flat y-y.

Even though Cisco lost 2.6 points in share, the company remains the leading vendor in the overall SPVI market with 37% share — a result of its dominant (60%) share in Video Packet Infrastructure and second place in STBs. Motorola holds the two spot with a majority share (35%) of STBs, which it grew 3.7 points in Q4.

In Cable STBs Motorola gained over 6 points share in Q4 to widen its lead to nearly 40%. In IPTV STBs, Cisco with approximately a quarter of the market gained 6 points to squeak by Motorola for first place share. In CMTS, Cisco gained over 14 points share from 2009 and now has captured over 60% of the market.

The market is transitioning towards more HD, more broadband options, IP video, multiscreen viewing and Internet/OTT video delivery of content. These factors are game changers for service providers and equipment vendors and will undoubtedly change not only the vendor landscape but force business model changes with the service providers.

For information about ACG Research's video infrastructure syndicated service, contact Karen Grenier at
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David Dines