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TV Everywhere Launch Fuels Transcoder Demand

Pay-TV service providers and other commercial users are expected to purchase multi-format transcoding equipment for their planned or evolving TV Everywhere video delivery services, according to the latest market study by In-Stat.

Transcoder technology is vital to online video content delivery and mobile video distribution, contributing to the market that will grow to nearly $300 million by 2014.

In-Stat believes the market growth is likely to drive acquisitions among the competitive vendors.

"The transcoder market is mostly comprised of small vendors that were formed to serve a particular segment," says Michelle Abraham, Principal Analyst.

In-Stat expects that some small vendors will be acquired by larger companies in the next few years in order to round out a company’s product portfolio.

In-Stat's market study found the following:

- While North America will be the largest region for live transcoders in the future, EMEA and Asia will experience growth as well.

- Worldwide revenues from enterprise-class multi-format transcoders will grow to $297 million in 2014.

- Multi-format transcoders must adapt the content to accommodate multiple different codecs, network bandwidth characteristics, and device screen sizes and resolutions.

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