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Dark Days Ahead for VOD? ABI Research Says Sales Will Slump

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How people consume online video is changing, says ABI Research, and that means lower sales for vendors of video-on-demand systems. ABI notes that viewing is shifting to tablets and smartphones, forcing operators to keep up with new requirements: Content management systems (CMS) will grow quickly with the shift, while video-on-demand vendors will grow at a slower rate.

Naming names, ABI says that cloud-oriented vendors such as thePlatform, Synacor, and KIT Digital (known as Piksel post bankruptcy) are well positioned to take advantage to the change in viewing habits. On the other hand, equipment and system vendors including Arris, SeaChange, Cisco, and Ericsson will lose ground, ABI predicts. Its research says that CMS vendors will grow by 100 percent over the next 5 years, while VOD vendors will grow by less than 30 percent.

“VOD Equipment and system vendors have adapted their systems to work on commoditized IT-grade hardware and are enabling multiscreen IP delivery to sit alongside classic set-top box delivery,” says ABI practice director Sam Rosen. “However, they have failed to adapt to syndicated workflows.” The future belongs to video CMS solutions that look like premium online video platforms.

For more research on video delivery trends, see ABI's Cloud Video and Video Hardware Research Service page.

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