Video Transcoders: A Business-critical Technology in Global Media and Entertainment

Video Transcoders: A Business-critical Technology in Global Media and Entertainment

Speed, quality, cost, and flexibility will be critical as focus shifts from delivery to monetization, finds Frost & Sullivan

MOUNTAIN VIEW, Calif., Jan. 8, 2015 /PRNewswire/ -- Fierce competition and consumer pressure is giving a boost to over-the-top (OTT) content volumes, intensifying the demand for video transcoders globally. With media and entertainment companies looking to deliver OTT multiscreen offerings at par with traditional primary screen content, both in terms of volume and quality of experience, they are investing significantly in digital content workflows and multi-screen transcoders. As industry focus shifts from delivery to monetization, product differentiation will hinge on speed, quality, density, operating cost, flexibility and future-proof architectures.

New analysis from Frost & Sullivan, Global Media and Entertainment Video Transcoder Market, finds that the market earned revenues of $270.0 million in 2013 and estimates this to reach $959.8 million by 2020. While adoption of on-premise products and solutions will continue, software- and platform-as-a-service for multi-screen workflows will gain faster traction due to their agility, scalability and convenience.

For complimentary access to more information on this research, please visit:http://bit.ly/1ApdXbu

"Ensuring high-quality, glitch-free transcoding across multiple generations of encodes and transcodes remains a crucial problem to solve, making this a technologically-intensive market," said Frost & Sullivan Digital Media Principal Analyst Avni Rambhia. "Managing scale and agility requirements in a cost-efficient manner is an added dimension of complexity that is driving upgrades and investments in the global media and entertainment video transcoder market."

While uptake continues to increase, prices are decreasing due to commoditized silicon and, ironically, the rise in cloud-based models is limiting market growth. The inability to fully monetize online video content also affects profits, although niches such as live sports and catch-up TV are beginning to yield dividends in the form of subscription revenues and sold-out advertisement inventories. Over time, advances in high-definition, 4K, high efficiency video coding (HEVC), and the emergence of commercial solutions over home-grown systems will counteract these restraints.

The advancement of online video platforms and video origin servers in the traditional video transcoders market is another challenge. Companies are responding either through portfolio expansion or establishing strategic partnerships. Strong brands with massive distribution channels, but dated internal technology, are acquiring smaller companies with cutting edge technology and limited go-to-market resources.

"Operators are looking for video to become an 'it just works' solution as opposed to a technologically-intricate deployment requiring continuous oversight and enhancement," concluded Rambhia. "Accordingly, video transcoder vendors need to position themselves as long-term outsourcing partners for operators, as opposed to the traditional strategy of differentiating purely on format support and compression efficiency."

Global Media and Entertainment Video Transcoder Market is part of the Digital Media (http://www.digitalmedia.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Global Pay TV Video Encoders Market, Global Pay TV Middleware Market, Global Web and Mobile Analytics Market, and Global Big Data Analytics Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.


-- The Integrated Value Proposition provides support to our clients
throughout all phases of their journey to visionary innovation
including: research, analysis, strategy, vision, innovation and
implementation.
-- The Partnership Infrastructure is entirely unique as it constructs the
foundation upon which visionary innovation becomes possible. This
includes our 360 degree research, comprehensive industry coverage,
career best practices as well as our global footprint of more than 40
offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion

Join Us: Join our community

Subscribe: Newsletter on "the next big thing"

Register: Gain access to visionary innovation

Global Media and Entertainment Video Transcoder Market

NDBF-70

Contact:

Clarissa Castaneda

Corporate Communications - North America

P: 210.477.8481

F: 210.348.1003

E: clarissa.castaneda@frost.com

http://www.frost.com



SOURCE Frost & Sullivan

Frost & Sullivan

Web Site: http://www.frost.com


-------
Profile: intent