



"The move to distribute programming in H.264 is creating a new category of product, the H.264 to MPEG-2 transcoder, which will be needed particularly by cable operators that have large installed bases of MPEG-2 set top boxes," says Michelle Abraham, In-Stat analyst. "The large number of cable headends will require large numbers of transcoders."
Recent research by In-Stat found the following:
° Contribution and distribution segments, though lagging behind redistribution in use of H.264, are moving to use the newer compression scheme.
° The MPEG encoder and transcoder market will reach 44,000 units in 2011.
° The silicon TAM for real-time broadcast MPEG encoders will reach a height of US$134 million in 2008.
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