Tuesday, January 18, 2011

Consumer demand for “anywhere, anytime” viewing driving robust video encoder and transcoder market growth

SCOTTSDALE, USA: Customers’ desire for more varied content and the ability to view video programming on PCs, tablets and cellphones is generating robust market growth in multiformat video transcoders worldwide. Total pay TV encoder and transcoder revenues worldwide will increase 10.4 percent annually from $779 million in 2010 to $1,408 million in 2016.

Growth in fixed-contribution encoders and broadcast encoders will be strongest in developing markets, where new video services are being introduced and additional channels are being added to many existing platforms. Growth in multiformat transcoders is strongest in North America and Western Europe where more content is becoming available for consumption anytime, anywhere.

“North American operators’ TV Everywhere offerings and European operators’ N-screen offerings are resulting in a proliferation of video resolutions, formats and bitrates,” says ABI Research practice director Jason Blackwell. “As content owners become more comfortable with the value of these offerings, new content will be made available.”

Adaptive bitrate streaming is an important component of video delivery over unmanaged networks. “Microsoft, Adobe, and Apple all have proprietary adaptive bitrate protocols based on H.264 video,” notes senior analyst Sam Rosen. Many in the industry expect HTML5 to bring them together into a unified architecture that works on all devices.”

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