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Content owners “buying encoders to bypass pay-TV”

Content owners and broadcasters including the likes of HBO, Disney/ABC and Fox are increasingly looking to purchase multi-format video encoders and transcoders that help them deliver video directly to consumers, according to a new report from US firm ABI Research.

While these content owners have always purchased some video encoders for primary distribution to feed into existing pay-TV systems, they are now increasingly looking to invest in multi-format transcoders that support direct to consumer distribution.

Sam Rosen, practice director at ABI Research, said: “Content owners will grow from 11% of the total encoder and transcoder market in 2012 to 17% in 2017, having already passed the importance of Telco operators for use in traditional IPTV platforms.

“Their role in distribution stems from both authenticated access offered as part of a retransmission agreement with a classical pay-TV operator, but will also increasingly include advertising supported free-to-wire services and some standalone content-owner bundles.”

The total encoder and transcoder market is forecast to exceed US$ 1.5bn in 2017, led by the combined Arris/Motorola, with Cisco, Ericsson, Harmonic, and Thomson Video Networks all playing a strong role.

Envivio currently leads the file-based multiscreen market, while Elemental Technologies leads the live multiscreen market, according to ABI Research.

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