Frost & Sullivan Recognizes Telestream and Digital Rapids for Their Joint Dominance and Booming Growth in the Emerging Broadband Video Transcoders Market

Nov 30, 2009, 12:36 ET from Frost & Sullivan

MOUNTAIN VIEW, Calif., Nov. 30 /PRNewswire/ -- Based on its recent analysis of the broadband video transcoders market, Frost & Sullivan recognizes Telestream and Digital Rapids with the 2009 World Frost & Sullivan Award for Market Share Leadership. In a highly fragmented and competitive market, in which only four vendors had more than 10 percent market share each, Telestream and Digital Rapids showed strong revenues in 2008, garnering a cumulative market share of close to 36 percent. The reason for the dual recognition is that both vendors have a similar stake in the industry with significant brand holding and customer trust.


The broadband video segment is still considered nascent, lacking lucrative revenue models. However, the phenomenally growing size of global audiences for this medium has left content creators with little choice but to have an outlet over the Web. This in turn has led to an escalating demand for video compression solutions. The rising complexity of scalability, multiple formats, multiple delivery options, such as unicast streaming, multicast streaming, and on-demand video distribution at various bit rates, are driving the market to choose specialized solutions from the market. Transcoding is increasingly turning out to be an enabling technology in a larger video processing workflow.

The competitive landscape of the broadband video transcoders market is crowded, with over 15 vendors, mostly emerging small companies. While large encoder vendors have few or no products for this medium, several small vendors have created and harvested competitive solutions for transcoding, which cater to demands such as multi-format support as well as scalability, all while offering competitive price points to the customers.

"There are few vendors that offer an optimal range of products for the varied needs of customers in this segment, and fewer still that have managed to gain a robust penetration, acquiring thousands of customers globally, continuing to innovate, and also grow despite the impact of recession," says Frost & Sullivan Senior Industry Analyst, Vidya Nath. "With their significant market penetration, Telestream and Digital Rapids have proved that broadband video is serious business for the media and entertainment sector, and with superior compression solutions they enable content creators to do seamless, high-quality video streaming and thereby provide for viable business opportunities."

Telestream and Digital Rapids both offer solutions to multiple segments, including broadcast, cable, telco, enterprise, and post-production, among others. Each company acquired close to 18 percent of the market during 2008-2009. An important factor that has contributed to growth is the companies' highly diversified product lines. Not only does each company offer individual standalone products, but each also offers highly customizable turnkey solutions that enable small, medium, and large customers to compress live and offline video for efficient delivery over IP. The ability to complement their transcoding products with other software and appliances to assist in the workflow has been instrumental in a higher adoption of the products of both companies.

Telestream mobilized its efforts for a stronger competitive offering through acquisitions. In 2008, it acquired Vara Software, a UK based company that brought in additional products, technologies and employees while expanding the distribution network. Similarly in 2006, the acquisition of encoding specialist Popwire helped Telestream further expand its encoding expertise and product offerings.

Digital Rapids on the other hand, has been in strong pursuit of clients globally. With technology expertise as its primary USP, the company aggressively pushed products in to head ends of service providers and broadcasters in all parts of the world. Its thousands of customers span small, medium and large corporates, governments, public organizations, universities, online portals, movie studios, and broadcast networks.

"Digital Rapids' solutions were among the very few products to find universal appeal and were used for streaming not only by NBC in United States, but also by CCTV in China, NOS in the Netherlands and more for the Beijing Olympics," notes Nath. "Its solutions are also used for a variety of applications such as web streaming, IPTV, video-on-demand, digital dailies, remote production, archive, and training for major clients all over the globe."

More importantly, Telestream and Digital Rapids have not only increased their penetration, but also achieved double digit growth during a downturn period that put most vendors face to face with losses and customer churn. This remarkable performance - a testimony to their competitive strategies and efforts towards further growth - make both companies the worthy recipients of the 2009 World Market Share Leadership Award in the broadband video transcoders market.

Each year, Frost & Sullivan presents this award to one or more companies that demonstrate excellence in capturing the highest market share within its industry. The award recognizes the company's leadership position within the industry in terms of revenues or units, as specified.

Frost & Sullivan's Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry.

About Telestream

Founded in 1998, Telestream products make it possible to get video content to any audience regardless of how it is created, distributed or viewed. Many of the world's most demanding media and entertainment companies, service providers and enterprises rely on Telestream products to streamline their operations and generate more revenue from their media. In addition, a growing number of video prosumers are turning to Telestream to simplify the creation of video for online and mobile distribution. Enterprise-class products include video capture devices, video transcoding and workflow automation server software. Desktop products include encoding, live webcasting, screencasting and component software. Telestream enables users in a broad range of business environments to leverage the value of their video content. Telestream's corporate headquarters are located in Nevada City, California, and its team of video experts is located in France, Germany, Sweden, UK and US. For more information, please visit

About Digital Rapids

Digital Rapids provides the leading hardware and software solutions for transforming and delivering media, enabling the multi-platform experiences that are changing how audiences view content. Scaling from standalone appliances to global workflows, Digital Rapids solutions enable media professionals to maximize their productivity, quality, and the value of their content. Recipient of a coveted IBC Innovation Award and four prestigious Frost & Sullivan honors for encoding and transcoding leadership, Digital Rapids combines innovative technology with proven expertise to help our customers expand their audiences, increase their media revenues and reduce their costs. Digital Rapids Corporation ( is headquartered in Ontario, Canada with offices in the United States, the UK, Australia, Argentina and Hong Kong.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents. To join our Growth Partnership, please visit

Jake Wengroff

SOURCE Frost & Sullivan