HEVC fallout damages VVC adoption, AV1 grows on back of Android TV and OTT, LCEVC takes root, in $7.8 billion annual royalty market

The arrival of a new generation of video codecs, the first designed for our streaming-first media and entertainment world, will disrupt the transcoding market substantially, over the course of the next ten years.

The next generation of codecs are set to be more costly, and this means that the Total Addressable Market (TAM) for video device royalties will grow 146% to $8.42 billion in the decade following 2020. Meanwhile, the Service Obtainable Market (SOM), what we believe to be the likely path, will grow to $7.62 billion in 2030. This means that patent pools will be collecting ever more royalties from the available market, with the total SOM reaching over 90% of the TAM by the end of the period.

This report is critical for anyone who wants to understand how transcoding workloads are going to dramatically shift in the next decade as the next generation of codecs arrive. The answer sheds light on how OEMs will have to loosen their purse strings to keep up with consumer demand and puts a cool-headed roadmap on how and when these changes will likely take place.

Companies mentioned in this report: Access Advance, Alliance for Open Media (AOMedia), Altera, Amazon, AMD, Apple, ARM, Ateme, AWS Elemental, Beamr, Bitmovin, Cisco, Dolby, Dolby Labs, Encoding.com, Ericsson, ETRI, Facebook, Fraunhofer, Fujitsu, GE, Godo Kaisha IP Bridge, Google, Harmonic, Huawei, IBM, IEC, Intel, InterDigital, ISO, ITU, JVC Kenwood, LG Electronics, Maxell, Media Coding Industry Forum (MC-IF), MediaKind, MediaTek, Microsoft, Mitsubishi Electric, Moving Picture Experts Group (MPEG), Mozilla, MPEG Licensing Administration (MPEG LA), MVMO, NAB, NEC, Netflix, NTT, Nvidia, On2 Technologies, Orange, Panasonic, Philips, Qualcomm, Samsung, Sharp, Sisvel, SK Telecom, Sky Italia, SmugMug, Sony, Synamedia, Tagivan, Tata Elxsi, Telecom Italia, Thaicom, Toshiba, Tremmen, Tecnologica

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Roz Hilton (Business Development Director, Video Technologies)

[email protected]

+ 44 (0)1962 732886