According to ABI Research, pay TV operator spending on middleware, conditional access, DRM and other software contracted 5% in North America and Western Europe during 2013, compared to 2012. Worldwide, however, spending on video software was up about 5% to $4.48 billion, driven mainly by growth in developing regions of Asia-Pacific.
Middleware providers believe the development of Comcast's RDK is one of the most significant factors in the decrease in software spending in North America during 2013, with merger uncertainty a second important reason. Today, larger middleware companies see the RDK mainly as a threat - operators directly hiring developers rather than relying on traditional vendors - while smaller middleware providers see it as an opportunity to decrease technology spending while offering robust solutions.