NDS SDP Blends Internet Content and Applications with TV Platforms to Enable OTT Monetization

Event Summary

March 10, 2011 -- NDS launched its Service Delivery Platform (SDP), an application development portal that links digital TV platforms with OTT content. The SDP offers a common API to enable the development and delivery of OTT applications and content to STBs and connected devices. NDS also launched the Infinite TV Exchange (ITX), a B2B content marketplace that connects service providers with content owners to create targeted programming channels. ITX offers seamless integration and monetization of OTT content with existing operator offerings.

Quick Take

Analytical Summary

• Current Perspective: Positive on NDS’ launch of its Service Delivery Platform (SDP) and Infinite TV Exchange (ITX), because the solutions address critical concerns of pay-TV operators (specifically, that OTT content and IP-enabled devices threaten to poke holes in their walled garden approaches) and are thus likely to be well received. Recognizing the slow and limited innovation in TV platforms to date, the SDP and ITX solutions aim to reduce the complexity for supporting multiple (and continuously proliferating) consumer devices and accelerate the capability for contracting and monetizing OTT content. By extending operator walled gardens into the domain of OTT content, the NDS solutions are intended to keep subscribers engaged with the operator brand.

• Vendor Importance: High to NDS, because the SDP and ITX solutions are extensions to its existing software portfolio which are deployed in devices and headend back-offices at more than 75 operators, providing a rich footprint to drive adoption. Beyond leveraging its own deployed footprint, integration with legacy video back-offices could enable NDS to penetrate markets such as the U.S., where its software portfolio has had limited traction. Yet, while NDS invokes a common API approach to enabling application and service creation, it targets a much narrower opportunity than traditional SDP approaches, leaving areas of network resource exposure such as messaging and location information off the table and focusing instead on enabling operators to “brand” OTT experiences.

• Market Impact: High on the DMI market, where the video back-office environment has been the loci of increased competitive activity. NDS joins rivals such as Alcatel-Lucent, Cisco, Concurrent, Motorola, thePlatform, and others in recognizing that blending Internet content and traditional TV experiences is a key service differentiator for operators. NDS introduces elements into this dynamic that must not be ignored. By offering a narrower implementation of API aggregation than established SDP approaches, the NDS SDP solution targets applications for complementing and controlling video experiences which may make inroads ahead of more comprehensive approaches. Its ITX solution potentially benefits from the deep content value chain relationships NDS has established as a leading content security vendor.

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