Research from SNL Kagan MRG is predicting that total worldwide TV service delivery platform revenue will reach $1.3 billion in 2017, from a base of a little more than $900 million last year.
The analyst notes that in just a few short years the TV experience has made a major transition from set-top boxes (STBs) in fixed locations, controlled by pay-TV service providers, to today's anytime, anywhere, any screen experience, including unmanaged devices. However, market segments are important in the analysis. Unit shipments of TV set-top boxes and home video gateways are expected to be relatively flat with little more than 500 million client devices being supported by TV service delivery platforms (SDPs) from pay-TV operators in 2017.
But the use of non-STB second-screen devices will continue to grow steadily as pay-TV operators have been compelled to take their offerings online to compete against OTT.
"Multiscreen delivery has become the baseline for any operator, not only to enable them to compete, but also to remain viable," the firm noted.
SDPs have become a must for operators because they create and manage pay-TV services, TV subscribers and the TV consumer experience for both physical and virtual TV service territories when it comes to features, service entitlements and content merchandising.
"Because multiscreen service providers must create, deliver and coordinate a common experience with a common set of content and coordinated usage rules across all screens, client-side middleware without comprehensive server-side oversight and management is no longer sufficient," said SNL Kagan.