Frost & Sullivan: The Video Transcoder Market Consolidates; Vendors Gain Strong Growth

Aug. 23, 2011 - PRLog -- MOUNTAIN VIEW, Calif. – Aug 23, 2011 – The boom in Internet-enabled handheld devices worldwide has made streaming video more ubiquitous. Enterprises as well as media companies aggressively push more video today as distribution networks provide more speed, devices support high-resolution, and new media business models become more viable.

Combined, these trends are driving an unprecedented demand for video transcoding products, which connect the dots between disparate input, storage, processing and transmission formats. These trends have also triggered frantic investments, mergers, and acquisition activities in the marketplace.

“We have seen more than ten acquisitions in the last two years as leading companies consolidate pieces of the digital content puzzle,” says Frost & Sullivan Senior Industry Analyst Avni Rambhia. “We expect to see continued consolidation and investment as the market evolves,” adds Frost & Sullivan Industry Manager of Digital Media Vidya S Nath.

New analysis from Frost & Sullivan, World Video Transcoders Market, finds that the world video transcoders market earned $230 million in 2010 and is expected to exceed $750 million in 2017. The research analyzes the transcoders market in three key segments – production, multi-screen, and enterprise, along with a detailed regional analysis.

While enterprises use digital media to facilitate and innovate marketing and corporate communications, the media and entertainment sector authors, delivers, and monetizes digital media in a variety of ways. As the technical requirements of various segments and end-user media are highly fragmented, specialized video transcoding solutions will be in demand. This trend is expected to continue until formats stabilize and transcoding is eventually integrated into automated workflow management tools.

The research finds that many transcoding vendors recorded double-digit growth rates in 2010, in stark contrast to an economic climate that was generally dismal.

However, this growth is not necessarily linear over the forecast period, according to the research analysis. “The common misconception in the industry is that growth trend for the transcoders market would directly correspond with that of consumption of online and digital video,” argues Nath. “While the market potential represents growth, factors such as shrinking prices and higher penetration of software-based transcoders are likely to temper long-term growth rates.”

The growth of individual vendors over the forecast period depends on their ability to expand their product line beyond transcoding and re-invent their market strategies.

“Vendors must consistently innovate their core transcoding solutions to remain competitive, but must also to form synergistic partnerships with other vendors, distributors, and system integrators to educate customers and retain long term value pricing capability,” emphasizes Rambhia.

The video transcoders market is rife with opportunities for growth. Increasingly, Internet-based OTT (over the top) video and on-demand content delivery models are turning the bouquet-based television subscription model on its head, and traditional broadcasters worldwide are embracing the multi-screen TV everywhere paradigm. This in turn implies continued demand for transcoding solutions for a long foreseeable future.

Key vendors covered in this research include (in random order) Digital Rapids, Telestream, Cisco, Inlet Technologies, Amberfin, Envivio and others.

If you are interested in a virtual brochure on this study, please send an email to Mireya Espinoza, Corporate Communications, at mireya.espinoza@frost.com, with your full name, company name, job title, telephone number, company email address, company web site, city, state, and country.
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World Video Transcoders Market is part of the Digital Media Growth Partnership Service program, which also includes research in the following markets: content protection and digital rights management, digital asset management, nonlinear editing, video encoding, video streaming, video servers, disk storage for digital media, and marketing process optimization, among others. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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World Video Transcoders Market
N975-70

Contact:
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Corporate Communications – North America
P: 210. 247.3870
F: 210.348.1003
E: mireya.espinoza@frost.com

http://www.frost.com

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Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's research and consulting services empower clients to generate, evaluate, and implement effective growth strategies.