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The Media and Entertainment (M&E) Video Transcoding Market is Seeing More Opportunity for Virtual Solutions
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This Frost & Sullivan study analyzes the global media and entertainment (M&E) video transcoding market (the base year is 2020). Video transcoders are used to convert content from a single input source to a wide array of output formats, definitions, resolutions, and file or live formats. This enables video to be delivered to diverse networked and handheld devices. Video transcoding also refers to the process of converting uncompressed or compressed content to a different compressed format or significantly repurposing the content, typically in the context of a digital media workflow. M&E video transcoders are distributed through direct sales as well as through value-added resellers and system integrators. For the purposes of this study, Frost & Sullivan has identified 2 major video transcoding segments—production and multiscreen/video on demand (VoD). Video transcoding customers classified in the production segment use video transcoding in post-production and archiving applications, and the key customers are post-production studios. The multiscreen/VoD segment comprises Pay TV operators, over-the-top (OTT) service providers, broadcasters, and Internet-only video services. Typically, multiscreen/VoD transcoding involves the creation of optimized video streams for unicast or multicast distribution of video to primary screens, connected computers, devices, and second/third screens. Video transcoding solutions are found in hardware, software, and software-as-a-service (SaaS) form factors. As the digital media ecosystem evolves to include more content and video processing technologies on a multitude of devices, many vendors are updating their video transcoding solutions from hardware to software and SaaS to remain agile and cost-effective, although some legacy hardware solutions will remain a constant in the market. The market experienced a downturn in revenue due to the COVID-19 pandemic and the budgetary problems that most content providers faced due to global safety measures such as social distancing and lockdowns. However, it is expected to recover over the next 2 years as video transcoding will remain a business-critical technology in the M&E space. The fate of the market is tied to the improvement in workflows and delivery as an increasing number of formats and devices take shape in this mature domain. Through mergers and acquisitions, the market has seen some stiff competition and the entry and the exit of vendors. The global performance of M&E video transcoders varies by region, and this study performs an in-depth discussion on the key regions—North America and Latin America (NALA); Europe, the Middle East, and Africa (EMEA); and Asia-Pacific (APAC). The study also identifies 3 growth opportunities and discusses the trends and the revenues associated with the multiscreen/VoD and the production segments and breaks down the revenue split by form factor.
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