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February 3rd, 2014

SNL Kagan—A Compressed State Of Affairs (Of SatBroadcasting™ Interest—Analysis | Reports)

[SatNews] SNL Kagan MRG has released its latest report,  MPEG Broadcast Contribution Encoders, which are used to compress the video and audio stream coming from the camera, truck or venue before it is transmitted to the studio—contribution encoders are also used for compressing the stream as it is moved between studios.
“Though there will be shifts in the market with some segments growing more slowly than others, the overall contribution encoder market will grow in 2014 after declining in 2013,” said senior analyst Michelle Abraham.  “We will see the normal seasonal patterns with greater shipments in even years for major events like the World Cup and the Olympics. Cellular newsgathering equipment is relatively new in the market, so there is a higher growth trajectory projected for that segment of the market.” SNL Kagan MRG feels that this segment of the market will reach about $320 million based on more than 20,000 units in 2017.
One large factor influencing the future of the contribution encoder market is the rollout of HEVC. SNL Kagan MRG expects that the mobile and fixed segments of the market will deploy HEVC encoders in different time frames with those using cellular transmission equipment moving first. There will be a number of demos of HEVC contribution encoding equipment at NAB with the first shipments expected later in 2014. There are many broadcasters who have not upgraded their newsgathering capabilities to HD, so replacing older SD MPEG-2 equipment with new HD H.264 equipment will continue with the overall market shift to HD. By 2017 SD encoders will account for 13 percent of the market, compared to 35 percent in 2013. ASPs will decline each year so vendors will need to increase their shipments each year to keep their revenues stable—higher prices for HEVC encoders will help with revenue.
Other trends shaping the market over the next few years include transmission via the unmanaged Internet, improvements in satellite transmission technology, 4K content production, and the need to reduce expenses at the same time as the demand for more and more video content is increasing. Not all of that content will use broadcast encoders though, as it becomes easier and easier for reporters to capture video footage with nothing more than a cell phone.
SNL Kagan MRG’s latest report, first in a series of reports on MPEG broadcast encoders, looks at contribution encoder market trends, the technologies, such as HEVC, that are impacting this segment, and the vendors supplying the market.  Fixed and mobile contribution encoder units (streams), ASPs and revenues are forecasted by region.

Learn more at the SNL Kagan infosite: http://www.snl.com/