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Vidyo, Inc 2006 - Confidential
A Ready Market - 5
available to millions of enterprise workers. IT managers will be focused on cost, scalability,
and resiliency in order to make video cost-effective and efficient while pleasing (high
quality) to the user at the same time..
Consumer Applications
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Instant messaging is widely adopted in the consumer space, with over 800 million user
accounts in 2005 generating over 10 billion messages per day. And the trend is clear ?
consumer IM is growing from text-only to include voice and video calling enhancements.
Consumer webcam sales have surpassed the 20 million per year mark, and video instant
messaging is already becoming increasingly popular, with sessions currently running in
the billions per year. Today, AOL, MSN, and Yahoo! all support video chat; and Skype,
popular with both consumers and traveling enterprise workers, has recently introduced
video calling and limited videoconferencing. All of these services will create strong
demand for better video technology that works across a variety of consumer Internet
access services.
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Many believe that the future of consumer television lies with ?Internet TV" and the
ability to deliver hundreds of on-demand channels with high quality and reasonable
bandwidth constraints. Service providers in this market will need video technology that
can deliver in environments with widely varying performance parameters.
3G Wireless
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In many countries, wireless networks are replacing wired ones as the primary
communications infrastructure, and now 3G networks, for which carriers have
committed hundreds of billions of dollars, are promising to provide mobile voice, data,
and multimedia. In fact, over 40 wireless service providers around the world are
currently running 3G multimedia trials and video is considered a key element in driving
demand for 3G services and 3G-capable endpoints. Success for these vendors will
require video technology that can provide consumers reasonable quality in the highly
unreliable wireless world.
Technology Innovations
Despite new video compression standards such as H.264 and ever-more powerful processors,
major challenges remain with respect to the transmission of real-time voice and video over
packet networks and the Internet in particular. Packet-switched network-supported
multimedia applications require many different transmission capabilities (bandwidth, latency,
jitter, packet loss, etc) while being delivered to a wide variety of endpoint devices operating
in homogeneous and heterogeneous bandwidth environments. Conventional video coding
systems encode video content using a fixed bit-rate tailored to a specific application. As a
consequence, conventional video coding does not fulfill the requirements of flexible digital
media applications. Hence, traditional technologies have impeded the wide-scale adoption
of video-enabled communications over IP networks. A new approach is needed.
