Analysis of the Global Video Nonlinear Editing Market
- ID: 2341372
- November 2012
- Region: Global
- 89 Pages
- Frost & Sullivan
Uplift in Mature Market Expected Despite Constant Risk of Vendor Vagaries
Professional video segments are moving towards digital, HD, file-based and multimedia ecosystems, and these factors will drive continued demand for video nonlinear editing solutions globally. However, this market is highly concentrated with over 50 percent held by two companies, Apple and Adobe. Any strategic change in product innovation or pricing by either can significantly alter the growth trends and market landscape.
This research service covers the Broadcast, Post-Production and Professionals segments; and provides an in-depth discussion of market drivers and restraints, regional analysis, competitive analysis, revenue forecasts, and technology trends. The study period is 2009-2016 with the base year as 2011.
Market Overview - Key Questions This Study Will Answer
- Is the market growing? How long will it continue to grow, and at what rate?
- Are the existing competitors structured correctly to meet customer needs?
- Will competing companies and products continue to exist or will they be acquired by other companies? Will these products become features in other markets?
- What are the current pricing trends in the market, and how are competitors continuing to provide value-priced products?
- What technical trends, including cloud technologies, are shaping the marketplace today?
- What trends are on the horizon, and what does this mean for future product strategy?
- Will pro-video segments, such as broadcast and post-production, drive more growth than the professionals segment that largely comprises individual video creators?
Executive Summary 4
Market Overview 10
Total Video Nonlinear Editing Market -
- External Challenges: Drivers and Restraints 16
- Forecasts and Trends 34
- Market Share and Competitive Analysis 43
Broadcast Segment Breakdown 53
Post-Production Segment Breakdown 61
Professionals Segment Breakdown 69
The Last Word 78
- Learn More - Next Steps 87
- Table of Acronyms Used
The video nonlinear editing (NLE) market is at crossroads. The landscape of this otherwise mature and highly concentrated market was disrupted in 2011 with multiple vendors positioning different strategies, which are likely to impact growth from 2012 to 2016.
The main drivers for this market include:
- The accelerated growth of multimedia video consumption and access
- Continuing fall in prices for information technology (IT) hardware and software
- The transition of professional video (pro-video) segments such as broadcast and post-production to Internet Protocol (IP)- and file-based workflows
Pro-video editing today is a far cry from what it was a decade ago. Systems are faster and multifunctional, and a high-end NLE bundle costs one-fifth (if not less) than what it did in 2002.
The biggest market challenge is that more than percent of the total NLE revenue has been in the hands of Apple and Adobe, and for both of them, editing (or any pro-video solution) is not a core product. Any move from either of these companies, especially Apple, with regard to pricing and
product features has had a dramatic impact on the competitive landscape over the years.
The market was especially shaken up in 2011 by Apple’s release (and overhaul) of Final Cut Pro X (FCPX) at $, with a percent price cut, which not only shrank the market size in total revenue, but also resulted in a marginal churn of FCP users to competitors.
Widespread speculation on Apple’s long-term strategies for this market—even a possible departure to focus more on its consumer video versions—is the reason for the shifting of customer loyalties.
Long-term growth in the pro-video segments will be determined by a vendor’s ability to innovate, provide constant upgrades, and create an easy, yet holistic, ecosystem around the editing products.
Ironically, in the broadcast segment, Apple and Adobe products are still typically used for creative offline editing and often sit side by side with other real-time solutions. This segment is likely to be the least affected and will exhibit the highest CAGR in revenue at percent from 2011 to 2016.
Leading dedicated vendors for broadcast are Quantel, Avid, and Grass Valley. Adobe’s growing focus on this segment has helped it garner a significant market share as well.
The post-production segment will be driven by increasing adoption among post-houses in the United States, Asia, and Africa. International collaborative workflows that use knowledge transfer over private and public Internet networks for content production have become a reality and will increase
over the forecast period. This segment will grow in revenue at a CAGR of percent from 2011 to 2016.
The professionals segment continues to form the largest part of the market with $ million in revenue and thrice the number of new users (-plus) in either broadcast or post-production.
However, growth in both units and revenue is expected to be tempered, especially in the near term.
Despite creating a buzz in the industry, cloud-based solutions have not directly contributed to the market. Product innovation and adoption in this direction are expected to be positive, yet gradual.
Executive Summary—CEO’s Perspective
1 Collaborative international projects are a reality, and the next frontier of innovation in editing is the cloud.
2 Apple, the previous market leader, loses its sheen; the next months will decide its revenue growth trajectory.
3 Large facilities are being replaced by on-premise mobile workstations for several feature projects.
4 Incentives abound for media companies in various regions, and leveraging them will be key for growth.
5 The total market average price fall is likely to desist; but room for correction among mid- to high-end products exists.