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Why Multiformat Video Transcoder Demand is Growing

Consumers are now viewing video entertainment at a variety of different locations -- each having unique connectivity and display characteristics.

Moreover, various new consumer electronics devices -- and a growing list of video formats -- will increase the number of profiles required to be generated by multiformat transcoders.

While processor and product improvements will enable more from each transcoder, they will not be enough to keep up with the demand, requiring purchases of more processing capability by streaming video service providers.

According to the latest market study by In-Stat, the file multiformat transcoder market grew at a rate of 72 percent in 2010 -- due mostly to the growth in multiscreen services from online video content providers and traditional pay-TV service providers.

In-Stat also forecasts that worldwide revenue for both live and file multiformat transcoders will continue strong growth over the forecast period.

“Pay-TV service providers and video content providers are the main customers for these products,” says Michelle Abraham, Research Director at In-Stat.

While there are similarities in their product needs such as video quality, there are also differences in density and the need to keep packaging together with transcoding.

And while the file transcoding market experienced the most growth in 2010, In-Stat expects multiformat transcoders for live streaming to show the most growth over the next five years.

In-Stat's latest market study found the following:
  • The multiscreen services 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.
  • Multiformat transcoder revenue will surpass $460 Million in 2015.
  • As service providers begin using multiformat transcoders in place of real-time broadcast encoders to process the signal to the TV, In-Stat expects to see even more profiles used.

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