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.
