Video transcoding entails converting a media file of one format to another, and the conversion is either digital-to-digital or analog-to-analog. This is the standard procedure when the target device does not support the format or if storage capacity is limited storage capacity. Transcoding enables converting of data into the suitable format as well reduces file size.
A video transcoder is used to convert existing digital video content to another digital format to enable compatibility and viewing on a device. For example, conversion of a MP3 music file to a WMV file can be termed as video transcoding. This process is also used to convert incompatible data to a better-supported format and for fitting various HTML files or graphics files to the unique constraints of smartphones, tablets, and other web-enabled devices.
Some primary factors driving growth of the global video transcoding market include high growth in Software as a Service (SaaS) offerings, high digitization of cable and broadcast, growing need for transcoding owing to increasing number of portable devices. Furthermore, demand for video transcoders is expected to increase further owing to rising demand for multiscreen video services.
Multiscreen video entails transformation of video content into multiple video formats having different resolutions and bit-rates for devices such as television, smartphone, tablet, and personal computer. In addition, introduction of high efficiency video coding (HEVC) or H.265 is anticipated to boost demand for video transcoders among network operators and media companies in the near future. However, high initial cost for replacement of old hardware-based transcoders or upgrade to more advanced technology-based products are key factors expected to hamper market growth.
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