According to the source the change is from MPEG-2 (DVD, SVCD players) decoders, to MPEG-2 encoders (Personal Video Recorders) and MPEG-4 enabled chips. The deliveries of MPEG-2 encoders is expected to double in 2004, in comparison to the previous year. Broadcasters are expected to utilize technologies offering higher compression rations, namely MPEG-4, in the future, thus increasing the market demand for the hardware.DVD players are adding support for MPEG-4, as are set-top boxes connected to bandwidth-limited networks. MPEG-4 ICs will grow at a triple digit rate reaching more than 100m units in 2007.
While MPEG-2 decoders for Super Video Compact Disc (SVCD) and DVD will decline as the devices are replaced in the market by DVD recorders, MPEG-1 decoders have found a new market in CD players with MP3 support, as they are a very economical solution for CD player manufacturers wishing to add MP3 playback. DVD recorders and PVRs (Personal Video Recorders) will push shipments of consumer MPEG-2 encoder ICs to more than double in 2004 over their 2003 shipments. Source: Digital Media Europe
