IPTV vendor consolidation in 2008

There are over 20 IPTV middleware vendors generating meaningful traction. Keeping in view the growth prospects of overall IPTV equipment market over the next few quarters, this segment is likely to see some consolidation during 2008. Orca acquisition is a start to a wider vendor consolidation across IPTV equipment industry expected this year.

Encoder space is perhaps the most consolidated segment in IPTV market. There are around 6 major players left in that market now. Hardware oriented platforms usually commoditize faster and hence consolidate earlier. IPTV middleware is a software product.

Moving over to VoD, that segment also seems reasonably consolidated. There are around 12 vendors generating some meaningful sales there. But I expect a couple of acquisitions in IPTV VoD segment as well.

Finally the content security market in IPTV is driven by 8 major players, with half of them being larger vendors. Let us say one or two acquisitions in that segment as well.