The demand for video streaming services is expected to increase due to proliferation of online media content service on the internet and mobile platforms globally. Video encoding and transcoding equipment plays a pivotal role in enabling faster delivery of media content over the internet to end-users.
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Video encoder helps to convert an analog based video content to digital format which is then compatible to run on internet and mobile devices. On the other hand, a video transcoder is used to convert an existing digital video content to another digital format for smooth functioning in a device. For example, a conversion of MP3 music file to WMV file can be termed as video transcoding.
The primary function of both encoder and transcoder is to retain the video quality while converting to a different video format. However, there is considerable loss of video quality based on technology used for conversion. Video encoders are available in the form of software and hardware based encoders. Hardware based video encoders primarily find application among broadcasting and cable operators due to its specialized encoding capabilities in video conversion.
Video encoders enable broadcasters to reduce network congestion and allow high data bandwidth that can be further utilized for other purposes. Software based video encoders provide many codecs to customize bit-rate and video quality. Also, it is easy to upgrade software encoders as compared to hardware encoders. However, the cost of hardware based encoder is high when compared to software based encoder due to the high latency speed characteristic in software encoder. The same applies to software and video based transcoder solution.
The application of video encoding and transcoding is expected to increase in education, media and entertainment, telecommunication, broadcasting, IT and gaming. The market can be segmented on the basis of type into hardware and software based solution.