TMCnet Feature
March 07, 2013

VOD, OTT and Emerging Markets Spur ATEME to Double-Digit Growth

By Tara Seals, TMCnet Contributor

Amid a greater thirst for video on demand (VOD), over-the-top (OTT) content and the ongoing transition to high-definition TV across the globe, video compression provider ATEME has doubled its business in emerging markets while booking a 50 percent increase in global revenue overall, it said.

The company experienced double-digit growth in North America and EMEA in 2012, and a near -100-percent increase in the fast-growing Asia-Pacific and Latin America markets. Premium VOD in Latin America with DirecTV (News - Alert) and others is a particular bright point, as is demand for multiscreen services as smartphones, tablets and mobile broadband becomes ubiquitous. To keep up with emerging markets demand, the company last year established regional operation centers in Miami for the Americas region and Seoul for the Asia-Pacific region to provide closer in-market sales support, customer engineering, and repair and logistics services.

"ABI Research (News - Alert) reported this month that the overall infrastructure video equipment market will grow to reach $3.8 billion dollars in 2017, up from $2.8 billion in 2012, with video encoders representing the fastest growing sub segment of the market," said Michel Artieres, CEO of ATEME. "Our corporate growth over the last year reflects the overall expansion of the market today and the strong desire from our customers for innovative solutions in the new media landscape."

The company saw sales to clients in more than 60 countries in 2012, and generated annual revenue of $24 million. The company revealed that it is cash positive, with its cash balance up $2 million compared to its last financing round in the second quarter of 2010.

Thanks to the growth, ATEME has increased its company head count to 105, including the hire of Mike Antonovich as general manager of the Americas. It plans to add another 30 employees in 2013.

Product development will be a focus for the company in 2013, it said. The majority of the additions are devoted to supporting the company's R&D efforts into HEVC/H.265 and other next-generation video compression developments. It is also continuing development of its KYRION line of hardware encoders and its TITAN line of file and live content transcoding software for multiscreen delivery.

ATEME said that demand for its MPEG-4 4:2:2 10-bit encoding technology has been particularly robust when it comes to high-end sports contribution applications. Major international sports events such as the London Olympics and the Euro Football Championship in the summer of 2012 led to “substantial investments in broadcast contribution infrastructure, further bolstering the company's financial metrics,” it said.

Edited by Brooke Neuman
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