Frost & Sullivan - Digital and HDTV Transition Expected to Rejuvenate Market
MOUNTAIN VIEW, Calif., Jan. 25 /PRNewswire/ -- The introduction of digital and high-definition television (HDTV), is expected to prompt a significant rise in the demand for a wide-range of advanced video production and post-production equipment; but are we expecting too much? Despite the government mandate to deploy HDTV, the transition is likely to be slow, with many broadcasters choosing conversion rather than replacement of existing equipment.
According to new strategic research from Frost & Sullivan (www.frost.com), U.S. Video Production and Post-Production Equipment Markets, the market is forecasted to grow at the compound annual growth rate of 5.7 percent during the forecast period 1997-2004. For the purposes of this study the market has been divided into two major segments -- video production equipment and video post-production equipment.
The major market drivers include the transition to digital which is stimulating the demand for all types of equipment. New product introductions are generating end-user interest, while broadcast users increase their budgets for new product purchases.
''Increased sophistication of PC-based video equipment is bringing higher functionality to the low-end and mid-range markets,'' says Frost & Sullivan Multimedia Communications Industry Analyst Alena Carroll. ''As the capabilities and the value of these products continue to improve, more post-production studios and broadcasters will consider turning toward PC-based equipment and away from high-end alternatives.''
The U.S. Video production and post-production equipment market has a diversified competitive market structure. There are 93 companies represented in this study.
The market is dominated by large companies participating in multiple segments of the market. Among the market participants are international giants from the consumer electronics industry: Hitachi, JVC, Panasonic, Philips, Sony Electronics and Thomson. The market participants also include the multibillion-dollar U.S.-based companies from the computer industry: IBM, Hewlett-Packard, Silicon Graphics and Sun Microsystems.
There are a number of public companies of various sizes in the market with video production and/or video post-production as one of their core businesses. These companies include: Avid Technology, Chyron, Pinnacle Systems, Scitex, and Tektronix.
In addition to the above-mentioned players, there are a number of companies with a smaller presence in the video production and post-production equipment market. Most of these companies are trying to find their niche in one product category, with varying success. The maturity of the market and established position of the market leaders are not favorable for new market entrants, and therefore the competitive situation has been and is expected to continue to be stable.
''Manufacturers of high-end systems will have to continuously enhance their products to demonstrate their advantages over lower-priced solutions,'' says Carroll. Keeping abreast of the technological changes and customer issues will be crucial for success in this field. This study not only monitors key market trends, it also offers strategic recommendations to help companies develop a plan of action to overtake less-informed competitors.
Frost & Sullivan presents Market Engineering awards to recognize companies that have worked hard to make a positive contribution to the video production and post-production equipment market. Winners are selected from an in-depth analysis of the market competitors and interviews with the companies that make up the industry.
The Market Engineering Product Innovation Award is given to Quantel for the cutting-edge technology they have been introducing into the market for a number of years. Quantel has recognized the need to offer its customers a paced transition to HDTV, since very few broadcasters or post-production houses are planning to conduct the transition rapidly because of prohibitive costs.
The technologies reviewed include HDTV, digital broadcast, analog broadcast, MPEG-1. MPEG-2, PAL/SECAM, NTSC, broadband video, compression, videoserver, video on demand, real-time editing, and DSP.
Market participants include: 3-D Video, Inc., Accom, Inc., Admax Communications, Ampex Corporation [AMEX:AXC - news], Artel Video Systems, ASC Audio Video Corporation., Aston Electronic Designs LTD, AutoPatch, Avid Technology, Inc., Avitel Electronics Corporation, AVS Graphics Limited, Axon Digital Design BV, BARCO, Blossom Technologies, C-Cube Microsystems, Inc., Chyron Corporation [NYSE:CHY - news], Cintel, Inc., Compix Media, Inc., Concurrent Computer Corporation [Nasdaq:CCUR - news], Datatek Corporation, Di-Tech, Inc., Digital Equipment Corporation, Discreet Logic, ECHOlab, EMC Corporation [NYSE:EMC - news], Evolving Video Technologies, Extron Electronics, Faroudja Laboratories, Fast Electronic U.S., Folsom Research, Inc., For.A-Video GainesVille, Hammer Storage Solutions, Harris Corporation [NYSE:HRS - news], Heuris Pulitzer, Hewlett-Packard Company [NYSE:HWP - news], Hitachi Denshi America Ltd., IBM Corporation, Ikegami Electronics, Image Video, InnovaCom, Jaleo Technologies, Inc., JVC Professional Products Company, Knox Video, Kramer Electronics USA, Inc., Leitch, Inc., LEL Computer Systems, LNR Communications Inc., Lucent Technologies, Matrox Electronic Systems, Ltd., Media 100, Inc., MegaDrive Systems, Inc., Metawave Ltd., Minerva Systems Inc., Miranda Technologies, Inc., Mitsubishi Electronics America, Inc., Network Electronics AS, NewTek, Inc., Nova Systems, Optibase, Inc., Optivision, Inc., Panasonic Broadcast & Digital Systems Company, PESA Switching Systems, Inc., Philips Digital Video Systems, Pinnacle Systems, Inc., Pioneer Electronics USA, Inc., Pirax Animation Studios, Prime Image, Inc., Pro-Bel, Ltd., Quantel, Inc., QuVIS, Inc., Ross Video Limited, Scientific-Atlanta, Inc., Scitex Digital Video, Inc., SeaChange International, Sierra Design Labs, Sierra Video Systems, Inc., Sigma Electronics Inc., Silicon Graphics, Snell & Wilcox, Softimage, Inc., Sony Electronics Inc., Storage Concepts, Inc., Sun Microsystems, Inc., Tektronix, Inc., Thomson Broadcast, Inc., Tiernan Communications, Truevision, United Media, Inc., Vela Research Inc., Videomedia, Videonics Inc., Videotek, Inc. and Vistek Electronics, Ltd.
This telecommunications industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the telecommunications market.
Frost & Sullivan is an international marketing consulting company that monitors the telecommunications industry for market trends, market measurements, and strategies. This ongoing research is utilized to update a series of research publications such as #2862-64 U.S. Videoconferencing Systems and Services Markets and to support industry participants with customized consulting needs.
Visit the Frost & Sullivan web site: frost.com.
Report: 2887-6 Date: January 1999 Price: $3450
SOURCE: Frost & Sullivan
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