Consumers and initiatives like TV Everywhere are driving the video transcoding business to record revenues as their hunger for video anywhere and on any device. This business, according to a new report from In-Stat, is forecast to surpass a $460 million market by 2015 for companies like Elemental, Harmonic, Envivio and Encoding.com.
The market for online video, delivered to multiple devices over unmanaged networks with fluctuating bandwidth, is driving content creators and service providers to produce multiple outputs of every piece of content they send out. As more and more video content becomes available via the Internet and mobile networks, the need for video transcoding products that can ingest content in one format and output content in the video formats used for distribution will grow, said In-Stat.
"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," said Michelle Abraham, research director at In-Stat. "Multi-screen delivery, either directly on the part of content providers, or via pay-TV service providers, is driving a lot of the market for multiformat transcoders. In-Stat expects this to remain the case for the next several years. We define multi-screen as delivering content files or streams to displays of various sizes and resolutions, not just to the TV and the PC."
Elemental CEO Sam Blackman in July told FierceIPTV that the company was experiencing explosive growth... and that was before it landed a major deal to encode for Comcast's Xfinity TV Everywhere play.
Blackman said Comcast currently is releasing 10,000 hours of programming a month on Xfinity and requires 18 adaptive bitrate multi-screen outputs for each piece of content. That is a number, Blackman said, that will increase as Xfinity continues to expand.
In-Stat said multiscreen services from content providers are primarily being launched in the Americas and EMEA and added that the expectations for TV Everywhere have brought new vendors to the market in 2011.
In 2010, the file multiformat transcoding market grew by 72 percent due to the growth in multiscreen services from content providers.
For more:
- see this release
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