Pay-TV infrastructure investment is down. As a result, major comms equipment providers like Cisco, Ericsson, and Nokia are dumping their video assets. Falling investment in proprietary pay TV infrastructure is a big reason.
Chapter 1: Cisco, Ericsson, Nokia bail on video solutions (0:20)
One early theme to emerge at IBC 2018 in Amsterdam is that major communications providers are divesting their video assets. Three major vendors have made announcements:
- Cisco sold its video provider business to a consortium backed by Permia, and the resulting company is called Synamedia
- Ericsson sold 51% of its Media Solutions business to One Equity Partners, and the resulting company is called MediaKind
- Nokia sold its IP video business to Volaris, and the new company is called Velocix.
Why are these companies exiting their pay TV oriented business when video is forecast to drive 80+% of video bandwidth within the next two or three years?
Chapter 2: What their pay TV customers want (1:50)
Pay TV companies are scaling back or eliminating their investment in proprietary solutions. Instead, they are looking to embrace all-IP platforms upon which they can relaunch all their services. As well, they are looking to eliminate proprietary set-top boxes and allow consumers to use their devices if they would like.
Android TV is a good solution for operators looking to move to IP platforms and open client solutions. At IBC, there will be an Android TV Summit on Friday afternoon. It’s sure to be well attended.
The best option for MediaKind, Synamedia, and Velocix could be to help their customers migrate to IP infrastructure and to embrace open set-top box clients like Android TV.