Unlike other new digital distribution technologies, placeshifting won't face its stiffest resistance from content owners (movie studios or record companies, for example), but from wireless operators; for its potential to disrupt new operator-directed content services, according to ABI Research.

ABI principal analyst Michael Wolf said, "With placeshifting, we believe the biggest opponents will be mobile operators who see these solutions as rogue network applications that could potentially paralyze their cellular networks, as well as keeping consumers from paying for mobile video offerings being offered over new mobile video networks."

Nevertheless, ABI anticipates the placeshifting market will grow from under $22 million today to $740 million by 2011, with growth centered around making the technology available to existing devices like smartphones and handhelds. The analyst firm cites increased consumer awareness of hardware, software, and embedded solutions as reasons why.

"ABI Research believes that mobile clients will see some of the strongest adoption of placeshifting capabilities, as smartphones and Wi-Fi-enabled mobile media players integrate the technology to enable streaming of live TV and digital music," according to Wolf.

While some carriers will reflexively resist placeshifiting - as they often do so many other perceived threats to their walled gardens and bandwidth - ABI says others will view it another way; as a means to capture additional average revenue per user (ARPU). So, in those instances, they'll support the technology as way to sell more high-end data plans or increase video service earnings.

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