Table of Contents
OTT Technologies and Proliferation of Delivery Screens Challenge the Growth of Pure-Play Encoders
This research service examines the global Pay TV video encoders market, highlighting drivers and restraints, unit shipment and revenue forecasts, market shares, geographic differences, pricing trends, and technology trends. The service also includes a discussion of the competitive landscape, including profiles of market leaders, challengers, and emerging participants. The Pay TV video encoders market is divided into three segments: cable, IPTV, and satellite. Each segment details unit shipment and revenue forecasts by region (North America and Latin America; Europe, Middle East, and Africa; and Asia-Pacific), including market shares and growth potential. The base year is 2013, with forecasts through 2020.
-Global Pay TV video encoders revenue totaled $ million in 2013 and will grow to $million by 2020. Cable will remain the largest market segment over the forecast period, though both IPTV and satellite will increase market share.
-Availability of versatile headends for different types of services, continued digitization, growth in number of HD and SD channels, and migration to more-efficient compression formats drive growth in the cable video encoders segment.
-Saturation in larger markets and the high cost of laying fiber challenge growth in the IPTV video encoders segment, while easing regulations in Latin America and analog switchover in Europe and Asia-Pacific drive growth.
-Scarcity of bandwidth and rising competition from other Pay TV services pose risks for the satellite video encoders segment; however, it will likely experience healthy increases in subscribers and revenue from 2014 to 2017.
-Over-the-top (OTT) services, such as Netflix, challenge traditional linear Pay TV business models, particularly in regions with mature broadband and 3G/4G infrastructure, well-established content licensing, and multiple screen-owning consumers.
-To better compete and minimize subscriber churn, Pay TV operators are offering more HD channels, video-on-demand packages, personal video recorders, and other services.
-Leading Pay TV operators have also joined the OTT bandwagon to make their content available to subscribers online and via multiple screens for free and pay-per-view.
-Pay TV operators will require versatile, scalable, and feature-rich video encoder products to enable their growing content libraries and services.
-Devices are simplifying, while simultaneously increasing capabilities. For example, Pay TV operators increasingly rely on integrated receiver decoders with re-encoding capability for reducing resolution and/or bit rate, as opposed to standalone video encoders. Vendors also are beginning to develop and market hybrid video encoders capable of addressing the encoding and transcoding needs of multiple screens apart from linear Pay TV services from a single hardware box.
-Frost & Sullivan recommends the following growth strategies:
oCapitalize on global growth opportunities, particularly in Southeast Asia, North and Central Africa, and Latin America.
oCraft a video encoder product line that comprehensively addresses convergence and multi-screen needs, particularly for the cable and IPTV video encoder segments.
oDifferentiate in terms of compression quality, remaining competitive on cost and channel density, and innovate on lateral features such as multiplexing and advertising insertion.
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