OTT Not Yet Impacting Global IPTV

Some smaller IPTV operators globally are turning to hybrid solutions that incorporate over-the-top video and cloud-based services, but that movement has not yet had much impact on the overall global IPTV market, according to a semiannual Global IPTV Market Leaders Report done by Multimedia Research Group (MRG) Inc.

The survey of IPTV vendors and service providers found an increase in IPTV operators from 853 to 875 since the spring of 2010, and that growth is happening in many different regions of the globe, says Jose Alvear, MRG IPTV analyst. But the maturing deployments by Tier 1 service providers continue to dominate the overall numbers as large providers such as AT&T Inc. (NYSE: T) add subscribers to their existing services.

As a result, there were no changes to the overall market leaders in the six IPTV vendor segments MRG tracks. Microsoft Corp. (Nasdaq: MSFT) continues as the global leader in middleware and video-on-demand software; Motorola Inc. (NYSE: MOT) is still leader in video head-end gear and set-top boxes; Alcatel-Lucent (NYSE: ALU) leads in access equipment; and Verimatrix Inc. is the content protection/ digital rights management leader.

"There are smaller, regional startup companies that are making headway in their regions," Alvear says, but the numbers are too small to show up.

The pace of acquisitions within the IPTV vendor space is viewed by Alvear as an indication that there is growth to come in the sector. There were 20 such acquisitions, 10 of which were publicly reported, including Motorola's purchase of SecureMedia and BitBand, and Pace's acquisition of Latens. (See Moto Nabs SecureMedia, Moto Closes BitBand Buy and Pace Buying Latens ).

The impact of OTT video on IPTV deployments is, as yet, undetermined, the MRG study concludes.

In regions such as South America, where regulations kept telecom companies out of video service delivery, OTT represents their best market opportunity, Alvear points out, and in other countries, including Argentina, Australia and Italy, service providers have embraced hybrid video solutions that incorporate OTT.

But there are also opportunities for pure-play IPTV remaining, he says.

"In Eastern Europe, Russia, and parts of Asia, we still see opportunity," Alvear says. "Even in North America, there is IPTV growth -- Canada just started allowing IPTV."

— Carol Wilson, Chief Editor, Events, Light Reading