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.
According to a new report from In-Stat, this 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.”