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Frost & Sullivan Shows the Appeal of HEVC Across the Industry

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The push is on for HEVC, but as Frost & Sullivan industry principal for digital media Avni Rambhia demonstrated at the recent Streaming Media West conference, different parties stand to gain in diferent ways. For encoding companies, for example, it's about creating a new revenue stream.

"Average selling prices in the encoding/transcoding industry have plummeted," Rambhia explained. "If there's any way to differentiate, if there's any way to have a margin right now it's in HEVC. It is very much a push market. It has always been a push market, but by raising the bar they also enable new opportunities and new revenues."

For video providers, HEVC is a way to reach new audiences.

"For the online video service providers, they have a critical mass, they want to continue to gather that critical mass. TV Everywhere is a buzz world, subscription revenues are up. Pay TV satisfaction is down, but you have to continue to push that bar," Rambhia said. "As your volumes get larger and your audiences get larger and more distributed, the op-exes start to matter a lot more, and you want to reach to more and more of the world. Not all of them are broadband connected."

While for pay TV companies HEVC is a way to improve quality over fixed bandwidth.

"For the pay TV service providers, they have limited bandwidth, limited infrastructure. They want to send 4K, they want to grow their channels. They want to improve their quality. HEVC is a good way to do that," Rambhia added.

For more on HEVC deployment, watch the video below and download Rambhia's presentation.


Measuring the ROI on a HEVC Deployment

As HEVC begins to find its stride in the industry, operators are grappling with the challenge of whether and how to begin to swap out MPEG-2 and possibly AVC encoders for HEVC codecs. While HEVC is still many months away from mainstream deployment, it is important for companies to take an ROI-centric look at the technology and evaluate where and when it makes sense to incorporate HEVC into their transcoding and content delivery workflows. This presentation will discuss factors to keep in mind when evaluating HEVC products and while strategically planning future digital media roadmaps.

Avni Rambhia, Industry Principal, Digital Media - Frost & Sullivan

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