Abstract

Major sporting events such as the Soccer World Cup in Europe in 2006 and the 2008 Olympics in China are generating huge demand for digital media technologies such as simultaneous standard (SD) and high definition (HD). Since, digital broadcast switchers are needed to enable digital technologies, this move is helping the growth of the broadcast switcher market world over. Neverthtless, the rising demand has resulted in heightened vendor competition. Vendor profit margins are low as a result of reducing prices to stay competitive. In this environment, survival for market participants is likely to depend on increasing sales by utilizing customer preferences for smaller switchers capable of handling both SD and HD.

This Frost & Sullivan research service analyzes the advantages and disadvantages of the world broadcast switcher market, segmenting it into routing switchers, production switchers, and master switchers. The study discusses the various trends and opportunities while providing in-depth market share analysis, forecasts, drivers, restraints, and revenue forecasts. It also enables companies to align their positioning strategies to benefit from the changing environment and obtain maximum return on investment.

FCC Mandate and Increased Flexibility of Digital Production Encourage Broadcasters and Cable Operators to Go Digital

The Federal Communications Commission (FCC), an independent U.S. government agency, mandate to have broadcast signals digitized has forced broadcasters to invest in digital equipment such as switchers, thereby boosting the broadcast switcher market. However, the adoption of digital technologies is slow due to the heavy infrastructure required to enable digitized broadcasts. Broadcasters are lobbying to push back the deadline for complying with the mandate. Nevertheless, adoption of switchers is expected to increase since the cost of digital technologies is coming down.

"Enterprises are also realizing the strong benefits of digitizing broadcast signals, including easy access to digitally stored video assets, and reduced time required for broadcasting as well as massive savings on storage and maintenance," points out the analyst of this research service. "This advantageous return on investment (ROI) from digital video technology deployment is expected to boost broadcast switcher sales." The availability of ample bandwidth, improved flexibility and speed of digital production and new video compression techniques such as moving pictures experts group (MPEG), which enhance digital viewing experience have further augmented the demand for digital media. This in turn has enhanced broadcast switcher sales worldwide.

Demand for Digital Media Technologies in Emerging Markets in Asia and Europe to Boost Broadcast Switcher Sales

"The move toward digital transformation of the broadcast space was for a long time focused on North America because of the FCC mandate," says the analyst. "Now, Asia Pacific countires are also spending heavily on digital media technologies to upgrade their broadcast infrastructure." This is largely due to the fact that well performing economies in developing countries such as China and India are gearing-up their digital and HD transmission capabilities for major televised events. China in particular is spending a huge amount on digital media technologies to prepare for the 2008 Olympics.

With the Soccer World Cup in Europe in 2006, the European countries are now deploying HD on a larger scale. Network news stations and large local stations are forced to buy broadcast switchers to enable digital signals. While Asia Pacific is set for an average growth rate of 18.2 percent, Europe is close behind with a compound average growth rate of 14.4 percent. This growth is largely attributed to significant media events that are driving the demand for HD transmission. Since, North America already has a mature market, it is expected to have a much flatter growth rate compared to Asia and Europe, growing at 9.7 percent.

Get Full Details About This Report >>