Digital Media Becomes a Staple for

Modern Education

Research PREVIEW for the

Analysis of the Global Lecture Capture Solutions

(LCS) Market

@FS_ITVision

Contents

Section Slide Numbers

Executive Summary 4

Market Overview 10

Lecture Capture Solutions Market —

• External Challenges: Drivers and Restraints 35

• Forecasts and Trends 52

• Demand Analysis 76

• PESTLE Analysis 92

• Market Share and Competitive Analysis 96

The Last Word (Conclusions and Implications) 108

Appendix 111

Key Highlights

Source: Frost & Sullivan analysis.

• The LCS market is fragmented, with the top 3 vendors (Sonic Foundry, Echo360,

Panopto) accounting for approximately a third of total market revenues, and several

others close behind.

• New vendors are emerging and although they are currently small, they are globally

located and well-placed to capitalize on first-mover advantage and growth in

individual regional markets.

• There are near-term barriers to growth, which are unique to education, such as

funding and infrastructure constraints, public policy debates, and training and

pedagogical issues; this is especially true in the K-12 segment where expertise is a

key differentiator.

• Factors driving the market include new pedagogies, re-invention of the classroom

experience to support new use case scenarios (e.g., “flipped” classrooms, and

online/distance education), and growing demand for continuing education.

Key Highlights (continued…)

Source: Frost & Sullivan analysis.

• Winning strategies include innovation that enables educators to best leverage

technologies for maximum learning outcomes.

• LCS enables new scenarios (and new markets), such as MOOCs (Massively open,

on-line classrooms/communities). Universities are scrambling to establish leadership

and figure out how to monetize MOOC offerings (tuition).

• MOOC monetization (certification) is inevitable, and will drive additional demand for

LCS, as content can be deployed repeatedly at very low marginal cost.

• Open source LCS technology remains compelling for some customers, but it is hard

to maintain as is its infrastructure.

• Cost is a barrier to entry, and companies that have established relationships with K-

12 systems in North America comprise the dominant market. This includes

companies selling form factors for student use (e.g. Dell) and selling textbooks and/or

digitized content (e.g., McGraw Hill Ed). Other market restraints include the need for

teachers to learn new LCS-enabled pedagogical techniques, for example, to enable

flipped classrooms.

Lecture Capture Solutions in the Overall Digital Media

Value Chain, Global, 2013

Source: Frost & Sullivan analysis.

Lecture Capture and Video Webcasting

Video

Enabled

Consumer

Devices

Broadcast & Cinematography

Cameras

Encoding & Transcoding

Acquisition Delivery Middleware and Workflow

Enterprise

Media and

Entertainment

Encoding & Transcoding

Digital Asset Management &

Enterprise Content

Management

Media Asset Management Video Servers

Nonlinear

Editing

Integrated

Receiver

Decoders

Streaming Platforms & Servers

Multi-Platform

Delivery &

CDNs

Multi-Platform

Delivery &

CDNs

Content Protection, Entitlement

and Rights Management

STORAGE

STORAGE

Marketing Automation Marketing Process Optimization

Marketing Automation

Dynamic Publishing

Animation Software

Animation & CAE

Software

3D Cinema

Video

Switchers

IP Video Network

Management

Online Video

Analytics

Web/Video Analytics

Ad Insertion

Servers

Online Video Platforms

Digital

Signage

Content Protection & Digital Rights Management

Scope

• This study covers market size, market participants, trends, competitive landscape, and growth

strategies for the global LCS market. LCS facilitate learning by enabling teaching and learning

scenarios inside and outside a physical classroom. LCS enables, captures, and documents

instruction such that teaching can be experienced across time and locations.

• Major LCS functions include lecture capture (instructor presentation and annotation), post-capture

lecture edit and annotation (mostly used by the students), opportunity for real-time and post-

production interaction between students and with the instructor, and integration into other technical

learning solutions, which enable administration, education metrics, and student portfolio

development and assessment.

• LCS technologies include hardware (cameras and capture hardware, servers), software (serving,

consumption, and annotation/personalization), and cloud solutions; thus, they range from

separate, specialized hardware components (such as special tracking cameras) to highly integrated

systems (such as completely automated lecture room infrastructure).

• This study covers LCS vendors globally, servicing North America and Latin America (NALA);

Europe, the Middle East and Africa (EMEA); and Asia-Pacific (APAC), including both developed and

emerging economies. It provides current and projected demand for LCS solutions in those

segments.

• This study is based on comprehensive background research and interviews, representing

approximately three fourths of the market participants.

Source: Frost & Sullivan

Widening Scope of the LCS Landscape

• Traditionally, when evaluating the scope of the LCS market, Frost and Sullivan considered only those vendors

whose primary business and market is education or whose specific offering is marketed to the education vertical

as part of the LCS scope.

• As BYOD becomes more pervasive and video collaboration technologies become more commoditized, a

number of general purpose products are increasingly used for LCS purposes. As a result, Frost & Sullivan

researchers broadened the scope in this study to include large, global multinationals with well-developed

education verticals.

• Cisco and Crestron sell critical commodity components for networks and other education infrastructure required

to support LCS scenarios. As another example, Dell and Apple are general purpose computing companies with

deep education involvement through sales to end users (students), often via school districts.

Conceptual Vendor Category

Characteristics Examples Difference from Earlier Scope

Tier I Stand-alone offerings are predominantly focused on public and private Higher Ed as well as K-12

Echo360 Sonic Foundry

Included in traditional definition

Tier II Offerings are typically bundled with complementary products, such as educational content; general purpose products are specifically targeted to the education vertical

McGraw-Hill Ed VBrick

Adds some companies and use cases to the study landscape

Tier III Relatively large corporations with well-developed education verticals, and/or more generic or tangential offerings

Adobe, Apple, Cisco, Crestron

Newly added to scope; increases market size

Source: Frost & Sullivan

Market Overview—Segmenting Products, Customers, and

Market Regions

LCS products are divided into 3 segments by primary (dominant) form factor:

• Hardware-based capture, encoding, transcoding, serving, or hardware

• Software-based capture, encoding, transcoding, serving, or software

• Software as a service (SaaS) for the above, or cloud

LCS customers are divided into 2 major verticals by both the type of teaching, and the end user student

population (e.g., age):

• K-12 schools and school systems

• Higher Ed schools and systems

LCS market regions are divided into standard geographic categories:

• NALA – North America and Latin America

• EMEA – Europe, Middle East and Africa

• APAC – Asia (inclusive of South Asian countries, China, Japan and Pacific islands)

Formal definitions are provided on the next slides.

Source: Frost & Sullivan

Market Overview—Key Questions This Study Will

Answer

Is the market growing, how long will it continue to grow, and at what rate?

Are the existing competitors structured correctly to meet customer needs?

Will these solutions continue to exist?

How will the structure of the market change with time? Is it ripe for acquisitions?

Are the solutions offered today meeting customer needs or is there additional development needed?

Are the vendors in the space ready to go it alone, or do they need partnerships to take their business to the next level?

Source: Frost & Sullivan

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Research Authors

Lead Analyst

Avni Rambhia

Industry Manager, Digital Media

Frost & Sullivan

Contributing Analyst

Jennifer Curtis

Industry Analyst,

Digital Media

Frost & Sullivan

Research Director

Mukul Krishna

Senior Global Director,

Digital Media

Frost & Sullivan

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