Aside
from the software vendors listed here there are also an increasing
number of new companies entering this market that also support streaming
video for the web. Streaming
video is very much an emerging market with trends and vendors unique
to that market. As such it will be treated as a separate market
analysis, so please look for a future Market Snapshot dedicated
to specifically to the streaming video market.
In
1999 the total video software market reached $270 million. That
figure is projected to increase at 5 ½ times by the end of 2004,
with revenues expected to reach $1.48 billion.
Digital
Video Software Market – Market Projections (in revenues)
The
market can actually be broken into 3 main segments:
·
Editing software
·
Compositing software
·
Paint & Effects software
The
editing segment, not surprising, makes up the bulk of the video
software market at 70% of the overall market. Compositing software
comes in a distance 17% of the total market with paint/effects following
at 13%.
Segmentation
Breakdown - Digital Video Software Market
It
is also not surprising that Adobe rules the video software market
owning roughly 58% of the total market, with Premiere for editing
and After Effects for compositing. Looking at the individual sectors,
Discreet holds second place in the compositing market with 15%.
And in the Paint/Effects market there is no one company that dominates
in that space at the moment.
Adobe
currently is the overwhelming leader in this market, however because
of the growth opportunity in this sector there is a lot of room
for additional companies to gain a substantial presence over the
next several years.
As
for platforms, the Mac still dominates this market with currently
58% of all products being Mac-based. A combined Windows and Windows
NT does makes up 41%, with Unix making up only 1% of the overall
market. This is really not surprising considering the Mac has had
such a head start particularly over Windows-base packages. However
growth of new software and system sales is primarily on the Windows
side, with most of these
packages having been on the market for only the past 18 months.
So to have a combined market penetration of 41% to
the Mac’s 58% shows how quickly Windows is becoming the platform
of choice.
Platform
Breakdown - Digital Video Software Market
Finally,
what will become increasingly important to these users, particularly
new users, will be the ability to easily move seamlessly from editing
to compositing to paint and effects. Therefore, interoperability
will become increasingly important. Also important will be the ability
of these packages to be open and flexible enough to support new
technologies such as the Internet and
streaming video.
Aside
from these more professional packages, there is also a surge in
consumer-based editing and effects packages. This is attributable
to the growing number of digital cameras and digital-ready computer
systems now available. As a result many of the professional video
software vendors have created “Lite” versions of their packages
specifically for the consumer market, while there are still other
vendors that are only targeting the consumer market. In any case,
this is in and of itself an increasingly growing and competitive
area and will be addressed in a separate Market Spotlight on consumer
video products.
