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Video Postproduction Services in Canada Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld

Sep 06, 2014, 12:00 ET

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Growth is expected as technology advances beyond the scope of in-house competitors

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New York, NY (PRWEB) September 06, 2014 -- The Video Postproduction Services industry provides production support services, including linear and nonlinear editing, animation and screen ratio conversion. Industry operators have struggled with tightening demand and a rapidly changing technological landscape during the past five years. The development of advanced postproduction editing software programs enabled clients to establish in-house solutions to save money and streamline the production process following the recession. The shifting media landscape has encouraged clients to internalize postproduction activities, damaging the industry's efforts to return to growth. Consequently, IBISWorld estimates that industry revenue has during the past five years.

“Fortunately for the industry,” says IBISWorld Economic Analyst Darryle Ulama, “technological developments have also kept operators afloat and opened up a broader array of potential services to provide.” One such example is screen ratio conversion; operators convert videos to appropriately fit differing displays as consumers continue to absorb their media through a variety of interfaces and devices. In addition, government incentives in some of the country's largest provinces have provided some incentive for video producers to continue their work, resulting in a trickle down benefit for industry operators. The Video Postproduction Services industry has a high number of small specialist providers and few operators that provide large-scale services. In 2014, IBISWorld estimates that the top four industry operators will account for a small portion of total industry revenue, indicating a low level of market share concentration. Market share concentration is estimated to have increased slightly over the past five years, largely driven by the growth of major companies such as Technicolour. However, the development of technology and postproduction software programs is likely to keep market share levels low; these advanced software programs allow small businesses to provide a high level of service or allow potential clients to provide in-house solutions.

During the next five years, the Video Postproduction Services industry's revenue is expected to begin its recovery as former clients return; rapidly changing postproduction technologies may be beyond the scope of in-house units to perform. “While software programs once made in-house postproduction more affordable, the constant upgrades and training required to establish a quality in-house postproduction team are expected to outweigh the benefits,” says Ulama. In addition, investment in the industry's best video engineers via higher salaries, coupled with fewer industry employees, is expected to pay off as wages account for a smaller portion of revenue.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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