Global Pay TV Video Encoders Market, Forecast to 2025

NEW YORK, Feb. 28, 2020 /PRNewswire/ -- The analyst defines encoders as commercially sold hardware or software products that produce video output in a single compressed format. The video input can be analog, digital compressed, or digital uncompressed.

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The definition also includes Integrated Receiver Decoders (IRDs) with integrated encoders in the market sizing, but not IRDs without encoding.This study also segments pay TV video encoding solutions into 3 use cases: cable, satellite, and Internet Protocol TV (IPTV).

Multiple service operators (MSOs) including Comcast and Cablevision, use these encoders to compress content ahead of distribution to cable subscribers.Satellite TV MSOs, such as DIRECTV, Dish Networks, and Sky TV, use these encoders to compress content for Direct-to-home (DTH) delivery to satellite subscribers.

To the extent possible, the analyst includes encoders used for satellite-based free broadcast services, such as Freeview in Australia and the UK. MSOs—typically telecommunications companies such as AT&T, France Telecom, and China Telecom—use these encoders to compress content for delivery to IPTV subscribers. Pay TV video encoding solutions are found in hardware, software, and Software-as-a-service (SaaS) form factors. As the digital media ecosystem is evolving to include more content and video processing technologies on a multitude of devices, many vendors are updating their video encoding solutions from hardware to software and SaaS to remain agile and cost effective, though some legacy hardware solutions remain steadfast in the market. The market is mature, and its revenue is predicted to continue to decline due to the rising popularity of cord cutting and OTT and D2C viewing alternatives to pay TV services. Additionally, delays in refreshments and upgrades of Pay TV workflow components (e.g., video encoders) is stifling market growth. Any growth is most likely to be seen from investments by satellite and IPTV services, and the biggest growth regionally will come from Asia-Pacific investments. There may be some optimism in 4K and HEVC standardization for pay TV services within the satellite and IPTV segment, but the overall market will not see exponential growth throughout the forecast period. Market fate is tied to a Pay TV operator's willingness to invest in compression efficiency and future-proof solutions. Through acquisitions and mergers, the market has seen some stiff competition and exit and entry of vendors. Global performance of pay TV video encoders varies in each region and this study has an in-depth discussion on North America/Latin America (NALA), Europe, the Middle East and Africa (EMEA), and Asia-Pacific (APAC).

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