Linear encoder markets to decline 21% by 2020

Adam Cox

Adam Cox

The broadcast encoder markets are due to decline over the next five years, with revenues expected to decline by 21% in the distribution market and by 10% in the contribution market.

According to the latest report from Futuresource Consulting, technology drivers in mature markets, such as the transition to HD, are fading and the move to more efficient codecs is only progressing slowly, held back by legacy infrastructure and reduced end user budgets.

“The encoder market is set to go through a significant change,” comments Adam Cox, Senior Analyst, Futuresource Consulting. “If the industry is going to weather the storm, it will need new market drivers, significant growth in emerging markets, and, perhaps most importantly, a change in approach.”

The industry does have some market drivers, in the form of 4K and HEVC, but with high price points for first generation products, Futuresource doesn’t believe these will have a significant impact in the short term. Many users are also waiting to see how the transitions and technologies evolve before investing, wary after the failure of 3D.

Content Delivery World 2015 (Radisson Blu Portman Hotel, London, 5th – 7th October) provides a forum to discuss the opportunities and challenges surrounding the evolution of content delivery architectures and workflows. Click here for more info

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