MPEG IC Shipments Up, Revenues Decline

According to In-Stat, a high-tech market research firm, the markets for MPEG video ICs continue to grow in terms of unit shipments. In particular, the consumer market for MPEG encoders and codecs in DVD recorders and PC-TV tuners 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. Declining prices may be bad for vendors, but it’s good for people who are buying the gadgets, like me for instance.

Here’s more info from a recent In-Stat report:

  • 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

Source: In-Stat