IPTV Deployments Featured Article

Alternate Modes of Content Distribution will further Growth in Conditional Access Systems, according to ABI Research

By Shireen Dee, TMCnet Contributing Editor

In a recent study, ABI Research (News - Alert), a market research firm, revealed the main factors that could influence growth in conditional access markets. According to the report, these growth factors were mostly influenced by alternate methods of content distribution such as telcos' Internet Protocol Television solutions.

 

The market for conditional access solutions has expanded to include Widevine and Verimatrix, as well as other new entries from conglomerates such as Cisco and Sun Microsystems in addition to NDS and Nagravision (News - Alert). The resulting competition was a major factor for the growth of the global market in 2007 which exceeded $1 billion.

 

"Extending access to content beyond the television adds to the revenue-generating capacities of service providers, while also offering flexibility to consumers," explained Zippy Aima, ABI Research industry analyst.

 

"Content owners are looking at new ways to make content available to consumers, and will take advantage of the Web 2.0 era. Though IPTV had a slow start, vendors see deployments not only in North America but also in Europe and Asia." Aima added.

 

With the digitization of content and upcoming business models which will dispense content, there is expected to be greater scope for companies tied to the entertainment business. The steady movement from content creation to delivery could be beneficial to vendors, suppliers and manufacturers that fall in the value chain of digital media.

 

As digital signals have become easier to copy and redistribute, government bodies stress upon applying conditional access technologies. While Asian Governments are making digital transmission mandatory, the FCC (News - Alert) (Federal Communications Commission) has given the United States a deadline of 2009 for completing the transition from analog to digital.

 

The report investigates the role of this technology in the pay-TV market. It not only reveals the growth restraining factors but also provides solutions to the problem.

 

ABI’s recent forecasts include the continued leadership of cable, attaining revenues of $737 million by 2013. It predicts that Telco will attain revenues of $558 million and satellite technologies, $410 million, by 2013.

 

Shireen Dee, TMCnet Contributing Journalist.

 

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