Video Encoder Market: Value Chain and Stakeholder Analysis

 Video encoding is the process of making a video for output. It is a comprehensive process of compressing and changing the format of video content. The goal of the video encoding process is to ensure that the video consumes lesser space. Video encoding is important in many senses. Firstly, the encoding makes it much easier to transfer video over the internet. The compression during the video encoding process reduces the bandwidth required, simultaneously maintaining the quality of the video. Secondly, video encoding helps in creating compatibility with certain programs and software. There is some content that is already compressed to an acceptable size; however, it still requires encoding for compatibility with certain programs or services. In such a case, video encoding becomes necessary.

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The overall video encoding process is administered by video codecs or video compression standard. Video codecs is an electronic circuit or software that includes an encoder to compress the video and decoder to create the exact video (decompress). Some of the examples of video codecs are RV40, H.264, and VP8 among others. There are a number of free video encoding software available in the market that are compatible with Mac and Windows.

However, for a better encoding process, a number of licensed proprietary software is available in the market that is used by content creators. The process of video encoding is rather complex; hence performing in-house encoding might create several challenges.  These challenges might include setting-up and maintaining the video encoding software and its related hardware component which will require a large server base. Also, there is the requirement for highly skilled IT personnel to manage and maintain all the video encoding processes. Hence, in order to avoid such challenges, end-users prefer to avail video encoding services. The cost of establishing and maintaining the in-house video encoding system could be costly than going for a third party video encoding service.

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Video Encoder Market – Drivers and Restraints

The Video encoder market is driven by several factors. Firstly, the video encoder market got a boost after the introduction of the software based video encoding process. The software based video encoding solution has gained traction in the last few years. The software based solution is much more affordable unlike the legacy hardware based system. They can be easily implemented and are highly scalable and can be easily upgraded. Secondly, continuous increase in the sales of handheld devices and strong internet penetration has increased the rate of video consumption. Hence, video providers now have to deliver ideal video experience to consumers.

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Pragati Pathrotkar

Pragati’s longstanding experience in the field of market research is reflected in her insightful news articles on business, science, and technology as presented on Edition Truth. Her interest lies in understanding the ramifications of cultural diversity, green behavior, ecommerce, economic progress, and technical consciousness on these increasingly consumer-oriented industries. Her understanding of digital marketing techniques gives her news stories an engaging twist.

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