Combined fixed and mobile contribution encoder shipments are estimated to have generated revenues in excess of $550 million at the end of 2009. With 13% growth in revenues forecast between 2009 and 2010, due primarily to MPEG-4 AVC SD and HD upgrades for the fixed contribution market in North America and Western Europe, revenues of $628 million for the contribution market are expected this year.

A new study from IMS Research The World Market for Professional Video Encoding, reveals that similar to MPEG-2 SD, MPEG-4 AVC SD shipments will decline through 2014 as shipments of MPEG-4 AVC HD increase. This is expected to correlate with the strategy of many operators to aggressively market HD service along with MPEG-4 AVC swap-out campaigns. Shane Walker, author of the study, states, “Sustained, gradual growth is forecast in the contribution market from 2010 forward. In the Asia Pacific region, for example, Japan will stand out as a contribution play due to the rapid transition to digital services and the aggressive adoption of MPEG-4 AVC. In more sophisticated markets where a range of advanced TV services are offered, operators are increasingly focused on delivering HD programming. Because of this, we expect penetration of HD encoders using the more efficient MPEG-4 AVC codec to pass 40% by 2011.”

For mobile contribution encoding specifically, growth is expected in markets where low bitrates are required for microwave electronic news gathering vehicles as these vehicles are much more prevalent than satellite trucks. In addition to the fixed and mobile contribution market, this study provides detailed forecasts for the ingest, transcode, and distribution segments further split by seven geographic regions. In addition, the market is further split by MPEG-2, MPEG-4 AVC and JPEG 2000 standards as well as broadcast platform type for distribution.