Telco Video Transcoder Market to Reach $116 Million in 2009
The global market for the transcoders used by telcos to convert video content from one digital format to another will return revenues of $116 million in 2009, according to new data from ABI Research.
The lion’s share of that 2009 revenue will come from North America. Later, as analog-to-digital television switchovers progress in other parts of the world, the sources of that revenue will shift, with other industrialized regions – especially Asia-Pacific – assuming growing importance.
“Several factors are driving the transcoder market,” says industry analyst Zippy Aima. “The current growth in the consumption of Internet video and the increase in demand for video on mobile phones are among the most important. Demand will get a further boost from the surge in high-definition TV, and from migration from MPEG-2 to MPEG-4.”
However, transcoder manufacturers must keep pace with constantly evolving digital video formats, and the lack – so far – of a complete shift to file-based workflows. The demands of digital content rights and distribution management must also be met.
Aima says that transcoder vendors are generally optimistic even in the current economic climate. “While acknowledging that the recession might have an impact,” she reports, “vendors such as Grass Valley and Harmonic are generally quite upbeat about the present and future course of this market. All elements of entertainment value chains are interdependent and it’s possible that a decline in a related segment might affect demand for transcoders, but entertainment-related industries are generally quite resilient even in times of recession.”
The lion’s share of that 2009 revenue will come from North America. Later, as analog-to-digital television switchovers progress in other parts of the world, the sources of that revenue will shift, with other industrialized regions – especially Asia-Pacific – assuming growing importance.
“Several factors are driving the transcoder market,” says industry analyst Zippy Aima. “The current growth in the consumption of Internet video and the increase in demand for video on mobile phones are among the most important. Demand will get a further boost from the surge in high-definition TV, and from migration from MPEG-2 to MPEG-4.”
However, transcoder manufacturers must keep pace with constantly evolving digital video formats, and the lack – so far – of a complete shift to file-based workflows. The demands of digital content rights and distribution management must also be met.
Aima says that transcoder vendors are generally optimistic even in the current economic climate. “While acknowledging that the recession might have an impact,” she reports, “vendors such as Grass Valley and Harmonic are generally quite upbeat about the present and future course of this market. All elements of entertainment value chains are interdependent and it’s possible that a decline in a related segment might affect demand for transcoders, but entertainment-related industries are generally quite resilient even in times of recession.”
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