Shipments Up, Revenues Decline, in Some MPEG IC Marke

In-Stat: Markets for MPEG video ICs continue to grow in unit terms. The consumer market for MPEG encoders and codecs in DVD recorders and PC-TV tuners, in particular, are driving increases in unit shipments, . However, in the case of MPEG decoders for DVD players and online network receivers, declining Average Selling Prices (ASPs) are bringing down revenue. There are more and more markets for MPEG video encoding and decoding functions. While some of these will remain small, others, like mobile handsets, offer large unit opportunities.

• H.264 decoder ICs are being used in both mobile applications and line-powered devices.

• STMicroelectronics is again the largest supplier of MPEG decoder ICs in the Online Networks segment.

• In the DVD recorder market, IC solutions are integrating more functions, which helps keep prices stable. Revenue in this segment will grow to US$778 million in 2010.

MPEG Video ICs: Transitioning to H.264

Publ 20060719