ATEME’s Growth in the Global Broadcast and DTT Video Encoders Market is Outstanding, Notes Frost & Sullivan
MOUNTAIN VIEW, Calif. — August 27, 2012 — Based on its recent analysis of the broadcast and digital terrestrial transmission (DTT) video encoders market, Frost & Sullivan recognizes ATEME with the 2012 Global Frost & Sullivan Award for Market Penetration Leadership. ATEME is one of the few companies that has shown outstanding growth – in both encoding and transcoding product lines – on the strength of its innovative architecture and algorithmic excellence.
“In the last three years, when many leading vendors saw market shares erode, ATEME’s share of revenues in the total broadcast and DTT video encoders market rose from just over 1 percent in 2009 to over 5 percent in 2011, with particularly strong position in the contribution segment where they rose to the third position with over 8 percent segment share” said Frost & Sullivan Research Analyst Avni Rambhia. “The company has one of the fastest growth rates in the market, with average year-on-year revenue growth of more than 60 percent from 2009 to 2011."
Encoding quality is the primary requirement for the contribution segment; it is also a key requirement for the backhaul & distribution segment. Further, features that permit extensibility of encoders and interoperability with other equipment in the network, as well as a broader portfolio that supports media convergence are a must. Increasing digitization and HD adoption worldwide is yet another driver for this market. Finally, a commitment to customer service, supplemented by professional service will help ensure customer loyalty and support efforts for increasing market share.
“Building on a brand name that is synonymous with encoding quality, ATEME has strategically pursued quality enhancements, built out convergence solutions and made interoperability and extensibility core product features,” noted Rambhia. “Coupled with an old-fashioned emphasis on customer support and professional services, the company has grown from strength to strength both in its home market of Europe and globally.”
ATEME’s Kyrion line of encoders, based on field-programmable gate array (FPGA) architecture, provides high efficiency, programmable encoding capability and low latency, and serves both contribution and backhaul/distribution applications, providing through-support of high quality video from content generation through distribution. Most ATEME encoders also support MPEG-2 encoding and can be upgraded to support the most advanced encoding configurations. This future proofing provides strong value to customers, who can purchase the basic capability they need upfront, knowing that additional features can be added over time, as needs grow or as technology evolves.
ATEME maintains a strong emphasis on customer support, particularly in contribution applications where uptime is critical. In addition to 24/7 online and telephone support for clients, the company also works closely with local system integrators in all geographies to ensure smooth product trials and glitch-free ongoing operation. This, in Frost & Sullivan’s opinion, increases the likelihood of a successful trial, maintaining customer loyalty and ultimately contributing to growing market share.
The company has a strong base in Europe and has grown its presence in North America as well. Now, it is seeing growing adoption in the APAC region. ATEME's primary growth driver in the most developed countries is the contribution of premium sports events, such as Olympic games, tennis grand slam tournaments, Formula One racing or UEFA Football championships. Meanwhile terrestrial broadcasting and analog switch off has been a strong growth driver in emerging countries such as Brazil, Eastern Europe and South-East Asia.
“Providing comprehensive head-end solutions for traditional and new media alike, ATEME is increasingly becoming the go-to company for broadcasters and service operators that are looking to build new head-end infrastructure or upgrade older systems,” opined Rambhia. “As demand for HD encoding grows worldwide and ATEME continues to expand globally through organic expansion and strategic system integrator partnerships, Frost & Sullivan expects ATEME to be even better positioned to gain market share against other competitors.”
Based on these factors, Frost & Sullivan is proud to present the 2012 Global Market Penetration Leadership Award in the broadcast and DTT video encoders market to ATEME. Each year, Frost & Sullivan presents this award to the company that has demonstrated excellence in capturing the fastest measured rate of change of market share within its industry. The award recognizes how fast a company increases its penetration of a market, in terms of revenues or units as specified.
Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry.