Infonetics Research expects a jump in video equipment spending next year among telco, cable and DBS operators, mainly driven by the need to support more multiscreen services. The research house has increased its long-term forecast for the overall video infrastructure market to $1.1 billion by 2016. The forecast includes VOD and encoding gear.
For the quarter, VOD and encoder equipment revenue fell 3% in 3Q12 from 2Q12, with all regions declining by single digits. Following two consecutive quarters of declines, spending on VOD and streaming content servers grew 1.8% in 3Q12.
Infonetics also forecasts the number of IPTV subscribers to nearly double between 2012 and 2016, from 83 million to 165 million worldwide.