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Video Infrastructure Market to Grow 43% as Cisco Boosts Its Share

RENO, NV -- (Marketwire) -- 08/14/12 -- New data from Synergy Research Group shows that the video infrastructure market generated revenues of $32 billion for technology vendors in 2011, a figure which is forecast to grow by over 7% per year to reach $45 billion by 2016. While revenues from client hardware and software segment (comprised primarily of set-top boxes, residential gateways and associated software) will remain relatively flat at around $14 billion per year, particularly strong growth will be seen in content management and distribution (comprising content delivery networks, media data centers and content management related software), which will surge to become a $23 billion market by 2016. Revenue from professional services related to video infrastructure will also show strong growth, while the content acquisition and preparation segment will grow by a steady 5% per year.

Driving the growth in infrastructure sales are two big trends -- transformation of a relatively mature pay-TV market and a surge in OTT services. The number of pay-TV subscribers worldwide will keep on growing steadily, but more importantly the number of digital pay-TV subscribers will continue surging to reach over 900 million by 2016. Meanwhile IP will have a major impact on pay-TV networks, which will continue evolving towards data centers and cloud-centric architectures. On the OTT side, the boom in accessing free content will continue to drive huge increases in traffic while generating little revenue for service providers, but at the same time paid OTT services will account for an ever-larger proportion of the revenues of pay-TV operators, which will in turn drive investment in technology that is able to support OTT.

"Clearly the biggest event in this market recently is Cisco's acquisition of NDS," says Jeremy Duke, Synergy Research Group's founder and Chief Analyst. "The price was high but you can see the rationale. Cisco was already a market leader with 18% video infrastructure market share; the addition of NDS boosts this to 21% by adding revenues and customers in some key market segments. It also significantly expands what Cisco can offer to telcos and to cable operators looking to migrate their traditional cable head ends to data center and cloud architectures -- which we believe is a multi-billion dollar market in transition."

About Synergy Research Group

Synergy Research Group (, a strategic partner of TeleGeography (, provides market intelligence, analytics, and strategic consulting services to the networking and telecom industries. For over a decade, Synergy has been a respected leader for quantitative analysis with a focus on emerging technologies, being the first to track IP Telephony and VoIP equipment. Synergy Research Group delivers quarterly data and analytical web-based tools with a comprehensive set of syndicated research services covering Video Infrastructure, UC Applications, Enterprise Voice, Data Center, Mobile Internet Infrastructure, Videoconferencing & TelePresence, Network Security, Cloud Communication & Collaboration, Content Delivery Networks, IPTV, Routers, Ethernet Switching, Service Provider VoIP, SAN, Smart Grid, WLANs, and emerging IP communication technologies.

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For more information:
Heather Gallo
Synergy Research Group
+1 775-852-3330 ext. 101
Email Contact

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