Just one more sign that the pay-TV model—as we know it—is in for more than a little upheaval: A new report says content owners–like HBO, Disney and Fox–will play an increasingly large role in the growth of the encoding and transcoding market as they look for ways to go directly to consumers with their products.
The report, from ABI Research’s Sam Rosen, forecasts encoder and transcoder revenues worldwide to grow at 10.4% annual growth through 2017, from $779 million in 2010 to $1,408 million in 2016.
Content owners’ contribution to the market will grow from 11% in 2012 to 17% in 2017, their role stemming from “authenticated access offered as part of a retransmission agreement with a classical pay-TV operator (and will) increasingly include advertising supported free-to-wire services and some standalone content-owner bundles,†said Rosen.
Other factors in the sector’s growth? Increased demand for HD content, new distribution platforms, more channels available on existing platforms, and N-screen/TV Everywhere platforms delivering TV content to the PC, tablets and mobile devices.
ABI said Envivio leads the file-based multiscreen market while Elemental Technologies leads the live multiscreen market, and predicts mature markets will see more growth in multiformat transcoders while emerging markets will see more growth in contribution and broadcast encoders. The report looks at hardware and software encoders and transcoders, used in pay TV markets worldwide.
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