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Broadcast Video Encoders Market to Bottom Out in 2010 Finds Frost & Sullivan - HD to catalyze marginal recovery in the long term
Broadcast Video Encoders Market to Bottom Out in 2010 Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Mountain View, CA, United States, 2009/06/26 - HD to catalyze marginal recovery in the long term.

   
 
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The economic slowdown and shrinking advertising revenues are ailing the broadcast industry, causing broadcasters to tighten their budgets on new equipment and replacements for 2009 and 2010. This will negatively affect the overall demand for the broadcast and digital terrestrial television (DTT) video encoders market.

New analysis from Frost & Sullivan (digitalmedia.frost.com), World Broadcast and DTT Video Encoders Market, finds that the market earned revenues of over $240 million in 2008, and estimates this to decline to nearly $160 million in 2010. The market should start recovering from that point on, although at a single-digit growth rate.

If you are interested in an Executive Summary or Research Overview, please email Jake Wengroff, Corporate Communications, at jake.wengroff[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"The video encoders market has not been isolated from the economic downturn and should brace itself for a growth decline of close to 30 percent in 2009," cautions Frost & Sullivan Senior Industry Analyst Vidya S Nath. "Investment cutbacks and capital expenditure (CAPEX) freezes are challenging the video encoders market, leading to further price reductions and accelerated competition, even though product penetration is continuously increasing."

The most affected region will be the United States – due to both the recession as well as saturation in demand caused by the recent digitization efforts by most broadcasters. Other regional digital mandates, too, will drive the demand for video encoders, though there is a very high risk of delay in several regions, as broadcasters face financial constraints to fund their CAPEX.

Eventually, what will spur recovery in the market are upgrades to advanced compression formats and high definition (HD). HD unit penetration will start exceeding standard definition product deployments in 2011.

"The economic downturn has only reinforced the priority list of a broadcaster," says Nath, "These are topped by high bit-efficiency, very high quality, cost-competitiveness, easy and faster software upgrades, and hassle-free products and services."

World Broadcast and DTT Video Encoders Market is part of the Digital Media Growth Partnership Services program, which also includes research in the following markets: MSOs video encoders, enterprise, Internet and mobile video encoders-transcoders, content protection and digital rights management, digital asset management, nonlinear editing, video switchers, content delivery networks, video servers, disk storage for digital media, and marketing process optimization. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

World Broadcast and DTT Video Encoders Market / N59F

 
 
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Broadcast Video Encoders Market to Bottom Out in 2010 Finds Frost & Sullivan

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