The global market for the transcoders used by telcos to convert video content from one digital format to another will return revenues of $116 million in 2009, according to new data from ABI Research.
The lion�s share of that 2009 revenue will come from North America. Later, as analog-to-digital television switchovers progress in other parts of the world, the sources of that revenue will shift, with other industrialized regions � especially Asia-Pacific � assuming growing importance.
�Several factors are driving the transcoder market,� says industry analyst Zippy Aima. �The current growth in the consumption of Internet video and the increase in demand for video on mobile phones are among the most important. Demand will get a further boost from the surge in high-definition TV, and from migration from MPEG-2 to MPEG-4.�
However, transcoder manufacturers must keep pace with constantly evolving digital video formats, and the lack � so far � of a complete shift to file-based workflows. The demands of digital content rights and distribution management must also be met.
Aima says that transcoder vendors are generally optimistic even in the current economic climate. �While acknowledging that the recession might have an impact,� she reports, �vendors such as Grass Valley and Harmonic are generally quite upbeat about the present and future course of this market. All elements of entertainment value chains are interdependent and it�s possible that a decline in a related segment might affect demand for transcoders, but entertainment-related industries are generally quite resilient even in times of recession.�
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