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ABI: SVOD Fueling Encoder Sales

3 Apr, 2013 By: Erik Gruenwedel

With the surge in original programming from subscription video-on-demand services and premium channels, the market for video encoders is burgeoning, according to new data from ABI Research.

Video encoding is the process of preparing the video for output, where the digital video is encoded to meet proper formats and specifications for recording and playback of the video across different networks and devices.

VOD platforms have become more versatile as they move from transactional VOD to SVOD, catch-up TV and TV Everywhere platforms. With content owners, over-the-top video distributors and multichannel video program distributors employing multiscreen video strategies, operators are looking to engage their viewers directly via PCs, tablets and smartphones with TV Everywhere offerings.

“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,” Sam Rosen, practice director at ABI Research, said in a statement. “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.”

Indeed, VOD hardware, video server hardware, ad servers, content delivery network hardware and alternative delivery mechanisms are all key building blocks for this market, according ABI.

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