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Multi-Format Video Transcoder Growing Upside

Digital video content is delivered to multiple device types over unmanaged networks with fluctuating bandwidth. As a result, video delivery must adapt to the variable bandwidth available on the IP network, the resolution and screen size of the receiving device, and the decoding capability (or limitations) of each device type.

Given that multifaceted scenario, a rigid one-size-fits-all solution is really not an option.

As more and more video content becomes available via the public Internet and accessible on mobile networks, the need for video transcoding products -- that can ingest content in one format and then output that content into the various video formats -- will grow significantly.

According to the latest market study by In-Stat, worldwide revenue for multi-format digital video transcoders will surpass $460 million in 2015.

"The industry is at the start of multiscreen delivery and TV Everywhere. Content providers expect in a few years that as much as 75 percent of their content will be available via the new distribution platforms," says Michelle Abraham, Research Director at In-Stat.

Multiscreen delivery -- either directly on the part of content creators, or via pay-TV service providers -- is driving the market for multiformat transcoders. In-Stat expects this increasing demand to remain the case for the next several years.

They define multiscreen as delivering content files or video streams to displays of various sizes and resolutions -- not just to the typical TV and the PC platforms.

In-Stat's latest market study found the following:
  • The multiscreen services from content providers are primarily being launched in the Americas and EMEA.
  • The expectations for TV Everywhere have brought new vendors to the market in 2011, Arris, Imagine Communications, and Thomson Video Networks.
  • In 2010, the file multiformat transcoding market grew by 72 percent due to the growth in multiscreen services from content providers.

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