Market for professional VoIP services will grow in 2007

Jan. 7, 2004
Jan. 7, 2004 - Market is expected to top $2.2 billion during that year, according to research firm.

The worldwide market for professional Video-over-Internet Protocol services will top $2.2 billion during 2007, exhibiting a powerful Compound Annual Growth
Rate of 45.3% between 2003 and 2007, according to In-Stat/MDR.

The findings are covered in the research firm's report, "Professional Video Services Over IP Networks - Ethernet & IP Creep Into The Broadcast Industry."

The high-tech market research firm finds that two key segments will drive strong growth: Live Two-Way Video for Interactive Communications and Live One-Way Video for Information Distribution. During 2003, these two "live" categories, combined, only account for 17.3% of the total market. However, by 2007, they will hold a 42% share of the worldwide market for all Professional Video-over-IP network services, according to the report.

"Corporate video services are already embracing IP infrastructures, and the broadcast industry will gradually move to IP services, as well," says Gerry Kaufhold, principal analyst with In-Stat/MDR. "IP networks provide a great deal of bandwidth at low cost, when compared against traditional professional quality real-time video connections which must adhere to very strict technical requirements.

"Corporate networks and broadcast video delivery services are taking advantage of improvements, such as MPLS and IPv6, as well as using video encapsulation products to send real time quality video over IP Virtual Private Networks," Kaufhold continues. "However, the evolution to IP will take some time to accomplish. Many traditional delivery services are provided through long-term purchase agreements, which means that the IP solutions cannot even be considered until the time periods of previous contracts expire."

In-Stat/MDR has also found that:

* North America is expected to be the strongest overall regional market for professional Video-over-IP Services. The bulk of video programming is produced either in US-based television and movie studios, or by US-based corporations. Over the next decade, it is expected that video production activities will experience stronger growth outside North America, so the long-term outlook for these markets should be very positive on a worldwide basis.

* In the Store & Forward category, Content Delivery Networks used by corporations to deliver streaming video services are expected to experience a strong Compound Annual Growth Rate of 36%. Store & Forward networks used for content creation services will
experience modest growth in a few selected areas.

* It is expected that near the end of In-Stat/MDR's five-year forecast period, as previous contracts begin to time out, growth for all four categories of Ethernet and IP video delivery networks will begin to see accelerating growth, which will continue out past 2007.

In-Stat/MDR is based in Scottsdale, AZ. For more information visit

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