The Digital Video market shows early effects of worldwide economic forces
TIBURON, CA- Monday, July 27, 2009-Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia, announced the release of the Digital Video Software Market Study. This new, stand alone Market Study is part of the Digital Content Creation series, which includes the 3D Modeling and Animation Market Studio for 2009.
This study looks at the market for digital video software and includes software used for video editing, special effects, and compositing. It covers the software used by professionals and consumers. The digital video software market reached $1.5 billion in 2008. The market will remain flat in 2009 but it will start to recover in 2010 and see growth through 2013. JPR estimates the digital video market will grow to $2.3 billion by 2013 for a CAGR of 9% for the years 2007 to 2013.
The digital video market is dominated by three major companies, Adobe, Apple, and Avid. In this difficult economy, the leaders have solidified their position
|Worldwide forecast for Digital
Video software ($M US dollars)
The digital video market depends on several industries that have been affected by worldwide economic forces: the advertising industry, the movie industry, and broadcast television. The advertising industry has been under pressure for some time as the market redefines itself in terms of the Internet. In addition the problems of the automotive industry, a major source of revenue for the advertising industry, have made a bad problem worse. The entertainment industry has also been hit by the writer's strike and broadcast TV has a declining viewership.
There are bright spots however. The corporate digital video market did well up to the last quarter when world economic problems intruded into all markets all over the world. The consumer market was also slow to respond to economic factors and did not really react until the first quarter of 2008.
"The high-end professional market has suffered the most in this economic downturn. Customers for digital video software are tightening their belts and holding off on upgrades. Vendors are also losing some customers to less expensive desktop based systems. In addition, consumers have made it very clear that they are not interested in difficult to use video editing software. The years 2008 and 2009 are going to be remembered as particularly difficult in the DCC markets and especially digital video. However, we do see growth picking up in 2010 and accelerating though 2013. A CAGR of 9% for the periods between 2007-2013 is actually quite respectable," says Kathleen Maher, Vice President Jon Peddie Research and the author of the DCC report series.