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Worldwide Transcoder Vendor Revenues Set to Get a Boost from HEVC in 2014 According to latest report from MRG, an SNL Kagan company
  • USA - English


News provided by

SNL Financial

Dec 16, 2013, 00:00 ET

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Scottsdale, AZ (PRWEB) December 16, 2013 -- Announced today, MRG, an SNL Kagan company and a market leader in the Video and Media ecosystem for more than 20 years, has released its latest report, Multiformat Transcoding.

Multiformat transcoders are used to process video and audio streams for distribution via OTT and multiscreen services as well as for other purposes like digital archiving. Many live transcoders are bought by pay-TV providers who are offering TV Everywhere multiscreen services out of fear of OTT providers undermining their business. They are spending money without generating additional revenue or improving margins. The pay-TV providers do not impact the file segment as much. Many of the customers for file transcoders buy them for mezzanine transcoding and workflow automation which can save money and time, thereby boosting profits and possibly generating revenue if it allows them to distribute their content more widely.

In addition to the many market drivers highlighted in this research, the move to use HEVC compression will encourage customer upgrades with an impact in 2014 and beyond. HEVC will not necessarily require new equipment but providers will likely buy more because they will still need to process H.264 as well as HEVC. With live streams, that means duplicating exactly the number of streams to be processed. For files, a customer may have current downtime to process HEVC as well as H.264. The density of HEVC solutions will not be as great as that of H.264, so it will drive additional transcoder sales.

“The greatest change to transcoder technology will come from the adoption of the HEVC codecs. All vendors are preparing software upgrades to existing equipment or have plans for new HEVC transcoders. Some of their customers are already making the investment in HEVC equipment but most are sitting on the sidelines right now. That is expected to change in 2014,” explains senior analyst Michelle Abraham. “The use of HEVC compression will be the greatest driver of revenue growth for the next few years, reversing the slowing growth we have seen.” Abraham adds.

MRG expects revenues for total transcoders to reach just over $490 million by 2017 as the live portion of the total continues to account for higher revenues.

This report contains worldwide five-year forecasts by region for live transcoders and file transcoders along with a discussion of trends in the market including types of transcoders, technologies, and a comprehensive look at the vendors who offer these products. This deliverable comes in PDF format.

About SNL Kagan

SNL Kagan, a division of SNL Financial LC, is a comprehensive resource for financial intelligence in the media and communications sector, including the broadcasting, cable, entertainment, motion picture, telecom, wireless, satellite, publishing, new media industries and media technologies. The SNL Kagan suite of products integrates breaking news, comprehensive data and expert analysis into an electronic database available online and updated around the clock. For more information, visit http://www.snlkagan.com.

Christina Twomey, SNL Financial, +1 (212) 542-8033, [email protected]

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