ABI Research reports that some cable operators are switching to Internet Protocol to deliver content, allowing for advanced interactive video options. Principal ABI analyst Michael Arden explains the motivation for the switch, “IP delivery not only moves a lot of the content that’s clogging up the multicast network onto the IP network, but the greater bandwidth permits other advanced television services such as online shopping and viewer voting that create new revenue streams for operators.”
The delivery standard for this switch (DOCSIS 3.0) has yet to be finalized, therefore none of the current set-top boxes or other Consumer Premise Equipment (CPE) is compatible. Once adopted, DOCSIS 3.0 will require that all customers who want that content purchase new CPE, a prospect that ABI estimates will cost $1,000 per household. CPE vendors like Motorola and Scientific Atlanta stand to benefit from these changes, both on the consumer and operator end.
ABI’s new report, “Worldwide Cable TV Infrastructure, CPE and Services,” addresses these issues. You can read more details about the report here.
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