Video Delivery Platforms Experience Shift

Adoption of the MPEG-4 (define) advanced video codec (AVC) market continues to grow, but it won't have widespread availability until 2006, according to a report published by In-Stat.

The emergence of newer MPEG-4 technology isn't pushing out existing MPEG-2 yet. In-Stat expects MPEG-2 only decoders to phase out, but compatible units will allow the platform to grow through 2009. Worldwide revenues for the MPEG Video IC (define) market were $3.8 billion in 2004.

The nascent MPEG-4 platform will enjoy more growth next year. Analyst Michelle Abraham said the market will be small in 2005 while suppliers conduct interoperability testing, but she expects widespread availability in 2006. Demand, in part, will come as more mobile handsets feature MPEG-4 Ics for mobile video delivery based on DVB-H and DMB standards.