MPEG Encoder Market Stalls

The broadcast MPEG encoder market grew in 2008, but growth will turn negative as the 2GHz relocation project in the US comes to an end, and the economy slumps. Overall, worldwide Real-Time Broadcast Encoder revenue will see a slight decline in 2009 mainly due to declining ASPs as units grow slightly. However, contraction will accelerate in 2010, as revenue declines more than 15 per cent reports In-Stat.

“The launch of new pay-TV services will slow in the current climate,” says Michelle Abraham, In-Stat analyst. “Encoder upgrades to save on operational expenses are more viable, with a number of new product introductions in 2009 that will reduce the bandwidth necessary for video transmission.”

Research by In-Stat found the following:

– Positive 2008 growth was driven by the launch of new terrestrial, satellite and IPTV platforms and the 2GHz relocation project in the US.

– Worldwide HD H.264 professional encoder revenue for terrestrial broadcast stations will more than double between 2008 and 2013.

– The European region will be the largest geographic segment for HD H.264 professional encoder revenue for mobile contribution, representing nearly 33 per cent of the worldwide $111 million market in 2013.

– H.264 will make greater inroads into the HD contribution segment, as content producers want to use the same bandwidth for HD contribution as they were previously using for SD contribution.

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