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HD and Digital Programming Bolsters Global Demand for Video and Ad Insertion Servers

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SOURCE Frost & Sullivan

Dynamic Ad insertion helps monetize investments in interactive and on-demand services, finds Frost & Sullivan

MOUNTAIN VIEW, Calif., July 29, 2014 /PRNewswire/ -- Broadcasters and cable operators are migrating from analog to digital networks in an effort to cater to their subscribers' growing demand for digital content. With the transition from standard to high definition (HD) and video on demand (VOD) content shifting the focus to interactive, addressable advertising commercials, the global adoption of video and ad insertion servers is set to escalate.

New analysis from Frost & Sullivan, Global Video and Ad Insertion Server Market, finds that the market earned revenue of $1.32 billion in 2013 and estimates this to reach $2.33 billion in 2019. This research covers the cable, telecommunication and broadcast video and ad insertion server segments.

For complimentary access to more information on this research, please visit: http://bit.ly/UxLwbO

Major sports events, such as the Sochi Olympics in Russia and the FIFA World Cup in Brazil, are now increasingly recorded in HD and ultra-HD. The consequent shortening of the sales cycles for digital media technology is fuelling the uptake of digital equipment, including video server systems.

"Personalized and interactive services such as VOD have further transformed the way consumers watch television," said Frost & Sullivan Digital Media Research Analyst Aravindh Vanchesan. "The advent of advanced capabilities such as pausing live TV and catching up TV, networked personal video recorders and interactive advertising is widening this global market scope."

Despite this immense potential, the popularity of the Internet as an advertising avenue may eat into the advertising dollars of broadcasters, in turn, affecting their ability to budget for technology. Broadcast television providers will be forced to operate on the linear ad insertion model, where all TV sets receive the same commercial regardless of individual preferences. This curbs the need for video and ad insertion servers.

Taking steps towards regional and targeted ad insertion, which has long been considered a potentially strong revenue generator for broadcasters, will be crucial to perk up demand for video and ad insertion servers. Server providers can also target cable and telecommunication companies that need to upgrade their server solutions to distribute video over multiple media such as the Internet and mobile devices.

"As vendors look for opportunities in this intensely competitive space, mergers and acquisitions will gain pace," observed Vanchesan. "While the video server market witnessed significant consolidation among vendors over the last five years, the highly-fragmented ad cable segment, as well as the telecommunication and broadcast segments will witness strong M&A activity during the forecast period."

Global Video and Ad Insertion Server Market is part of the Digital Media (http://www.digitalmedia.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Global Embedded Computing Ecosystem Market, Global Media and Entertainment Solutions for the Cloud, Global Analysis of the Broadcast and Digital Terrestrial Television (DTT) Video Encoder Market, and Global Software Monetization Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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Global Video and Ad Insertion Server Market
ND24-70

Contact:
Clarissa Castaneda
Corporate Communications – North America
P: 210.477.8481
F: 210.348.1003
E: clarissa.castaneda@frost.com 

http://www.frost.com

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