CAMPBELL, CA – The fourth quarter of 2010 saw a dramatic growth of over-the-top (OTT) services as providers such as Netflix and Hulu launched low-cost streaming services toward the end of 3Q10. Sales of OTT media servers (standalone set-top boxes such as Apple TV, Roku Media Player and Boxee Box) nearly doubled quarter-over-quarter, according to research firm Infonetics Research. OTT media server revenue jumped 90 percent in 2010 and is forecast by Infonetics to grow to $1.16 billion in 2015.
Infonetics analyst Teresa Mastrangelo says that this rapid growth shows service providers and equipment vendors have hit the ‘sweet spot’ for pricing. She adds, “However, these services continue to complement pay TV rather than replace it. On a global basis, demand for set-top boxes continues to increase as more countries transition from analog to digital and more operators offer enhanced services such as high definition and DVR. We also are seeing increasing demand for hybrid set-top boxes, which leverage the existing broadcast infrastructure but utilize the broadband connection to incorporate OTT content and increase interactivity and on-demand services.”
The Infonetics report also found that