STMicroelectronics Finishes the Year as No. 1 in MPEG Video Chip Revenues
NEWTON, Mass.--(BUSINESS WIRE)--June 1, 1999--STMicroelectronics finished first in worldwide MPEG video chip revenues for 1998 by taking advantage of the strong demand for its MPEG-2 decoders in set top boxes.
While C-Cube Microsystems finished first in total unit shipments, much of their volume came from lower priced MPEG-1 decoder chips rather than the pricier MPEG-2 chips, according to Cahners In-Stat Group, a high-tech market research firm.
According to Cahners In-Stat Group, growth in MPEG-2 applications for on-line networks (set top boxes) doubled to almost $283 million in 1998 while MPEG-2 for published media (DVD) grew to almost $127.5 million in 1998. Worldwide, the market for MPEG video chips increased to $616 million in 1998, up from $569 million in 1997.
Cahners In-Stat Group also reports:
-- Annual revenue growth increased slightly more than 8% over 1997
while MPEG video chip unit shipments rose a healthy 41.8%; this
growth occurred during a year when total worldwide semiconductor
revenues decreased more than 8%
-- MPEG-4 decoders, for applications such as video-telephony and
video-conferencing, will begin shipping this year and will
experience significant growth in the year 2000
-- The top four MPEG vendors for unit shipments and revenues in 1998
were the same as the last two years: C-Cube, STMicroelectronics, ESS Technology and LSI Logic
"Market share for MPEG-2 Decoders for published media increased dramatically last year," said Michelle Abraham, senior analyst for Cahners In-Stat Group's Multimedia Service. "We expect growth in this area to continue due to the increased Super Video CD player market in China."
MPEG-1 decoder chip shipments are expected to begin declining in 1999. Abraham wrote the report MPEG Video Chip Market Share, No. MM9904MI, which includes market share, product line and revenue analysis.
Cahners In-Stat Group is a high-technology market research firm with comprehensive understanding of computer and convergence, networking, wireless, telecommunications, Internet and semiconductor markets. Headquartered in Newton, offices are also located in Scottsdale, Ariz. and San Jose, Calif.
Cahners In-Stat Group is part of Cahners Business Information, the largest publisher of specialized business publications in the United States and a division of Reed Elsevier. Visit Cahners In-Stat Group online at cahnersinstat.com.
CONTACT:
Cahners In-Stat Group
Michelle Abraham, 602/483-4445
email: mabraham@cahnersinstat.com
Christina Hecht, 602/483-4443
email: checht@cahnersinstat.com
www.instat.com
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