Analytics, Personalization and Monetization Differentiates Online Video

Platforms

Research PREVIEW for the

Analysis of the Global Online Video Platforms Market

@FS_ITVision

Key Highlights

• An online video platform (OVP) is a fee-based, software-as-a-service (SaaS) online content solution that enables content owners to ingest, transcode, store, manage, protect, publish, syndicate, track, and monetize online video.

• The global OVP market has seen tremendous growth over the past year. Over-the-top (OTT) video is a must-have feature for businesses today, thanks to the worldwide proliferation of video-enabled consumer devices; however, bring-your-own-device (BYOD) video is easier said than done. Enterprises, media, and entertainment companies are increasingly relying on OVP solutions to manage, publish, and monetize video content in a scalable manner.

• Enterprises are increasingly experimenting with video as they realize its power as a communications tool. For broadcasters and PayTV operators, the demand for high-quality, TV Everywhere services and the growing subscription and ad revenues from online video make it a profitable segment of their business. Growing investment in bandwidth worldwide offers added incentive to leverage video to grow revenue and customer loyalty.

• On the flipside, the general confusion and lack of market awareness around what an OVP consists of and delivers; and a mushrooming of vendors ostensibly serving the market, hold back the market.

• Home-grown solutions, and low-cost alternatives such as the YouTubes and Vimeos of the world, are diverting small and medium businesses (SMBs) and smaller content providers away from investment in professional OVP solutions.

• OVP is seeing a distinct dichotomy between the enterprise and media and entertainment (M&E) segments. The requirements, challenges, and growth opportunities are unique for each segment. The study calls this out and looks at these segments in greater detail.

Source: Frost & Sullivan

Key Highlights (Continued)

• Slow economic growth globally and limited information technology (IT) budgets form the backdrop of the competitive environment. Enterprises are still largely document-centric; as they gradually embrace video as a content type, and develop an enterprise-wide video strategy, the role of OVPs will increase manifold. Concerns about security, video formats, and defining video quality in an online environment are also hurdles in the OVP marketplace.

• Frost & Sullivan observes that Brightcove, Ooyala, Kaltura, and thePlatform are still essentially the largest participants in the OVP space. However, over the past few years, a number of regional participants have developed. Xstream and Arkena are notable participants in Europe; Brazil’s Samba Tech has been the vendor of choice in the Latin American markets; and Australia’s Viocorp is a significant OVP participant in Australia and New Zealand.

• However, on the whole the OVP market is still very much in the growth phase, and is set to grow at a compound annual growth rate (CAGR) of 13.7% over the next 6 years. The North America and Latin America market will lead the way, followed closely by the Europe, Middle East, and Africa and Asia-Pacific markets.

• Over the past year, the Scandinavian and Latin American regions have shown huge potential for growth. Many interesting regional and technology trends have surfaced globally; they are covered in greater detail in the study.

• The pricing for OVP use is based on a software license fee, plus bandwidth. The platform license fee is typically determined based on how many content pieces are in the system as well as the number of components in the video platform ecosystem.

• The demand for OVPs will continue to grow, as will the supply. Over the forecast period, the landscape will be peppered with mergers, acquisitions, and tighter technology and reseller partnerships.

Source: Frost & Sullivan

OVP- Enterprise Segment- Drivers & Restraints

Enterprise Segment: Key Market Drivers and Restraints, Global, 2014–2019

Managing other content types takes precedence over video H H H

Lack of market awareness and acknowledged best practices in vendor selection make customers wary of commitment and prolong sales cycles*

M M M

Homegrown solutions and YouTube are popular alternatives for OVPs, which restricts sales* M M L

Security concerns around having branded IP in the cloud M L L

Persistently sluggish economy dampens aggressive investment in enterprise video L L L

1–2 years

3–4 years

5–6 years

The need to economically deliver video to fast-growing and highly fragmented video-enabled consumer devices drives demand for OVPs*

H H H

Increased use of video for content marketing driving OVP demand H M M

Widespread availability of the means of video production, and the ease of video capture within the enterprise, spurs demand for solutions to manage workflows

H M M

Seamless video management, publishing, and reporting is becoming business-critical and yet are

complex to achieve in-house, hence driving OVP consumption* M L L

Enterprise video enables enterprises to compress business cycles and drive cost savings and other efficiencies, fueling demand for OVPs

M L L

Impact: H High M Medium L Low Note: Drivers and restraints are shown in order of impact. Source: Frost & Sullivan

Mark

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M

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*Explanations are provided in the total market section for these drivers and restraints.

OVP- Media & Entertainment Segment- Drivers & Restraints

Media and Entertainment Segment: Key Market Drivers and Restraints, Global, 2014–2019

Continued uncertainty in ROI and online content business models makes companies reluctant to invest in TV Everywhere, even with the more economical OVP option

H H M

Lack of market awareness and acknowledged best practices in vendor selection make customers wary of commitment and prolong sales cycles* H H M

Lack of standards defining online video quality M M L

Homegrown solutions and YouTube are popular alternatives for OVPs, which restricts sales* M L L

Lack of standards for online video formats M L L

1–2 years 3–4 years 5–6 years

The need to economically deliver video to fast-growing and highly fragmented video-enabled consumer devices drives demand for OVPs*

H H H

Amid intense competition, companies must differentiate on content selection, time to market, quality of experience, customer loyalty, and ad revenue; OVPs enable success for these businesses

M M H

Growing access to broadband (wireline or wireless) worldwide fuels growth in demand for

online video; OVPs enable companies to fulfill this demand M M M

Seamless video management, protection, publishing, and reporting are becoming business-

critical and yet are complex to achieve in-house, driving OVP consumption* M M M

Impact: H High M Medium L Low Note: Drivers and restraints are shown in order of impact. Source: Frost & Sullivan

Mark

et

Dri

vers

M

ark

et

Restr

ain

ts

*Explanations are provided in the total market section for these drivers and restraints.

Executive Summary—CEO’s Perspective

2 Cloud and cloud-based OVP architectures will continue to grow in popularity. Content protection and DRM will be critical.

3

Providing end-to-end workflows is not a sufficient OVP value proposition. Plumbing is a largely solved problem, although some companies choose to purchase best-of-breed point solutions to devise their own OVPs.

4

OVPs are looked upon as trusted advisors for technology and format choices, and as a means to accelerate content licensing through existing relationships.

5

Size, latency, quality, scalability, and value-added services are critical differentiators for OVP vendors. Rise is customer demand for live video is another significant trend.

1

The biggest value that enterprises and M&E companies globally are deriving from OVPs is the cost-efficient reach to BYOD. Helping companies generate sustained views using analytics, metrics, and personalization is key.

Source: Frost & Sullivan

Details of the Full Analysis

The Full Analysis Features the Following Content

Section Slide Number

Executive Summary 6

Market Overview 13

Total Online Video Platforms Market -

• External Challenges: Drivers and Restraints 23

• Forecasts and Trends 31

• Demand Analysis 43

• Market Share and Competitive Landscape 48

Enterprise Segment Breakdown 63

Media and Entertainment Segment Breakdown 74

NALA Breakdown 85

EMEA Breakdown 92

APAC Breakdown 99

The Last Word 105

Appendix 109

List of Exhibits

Exhibit Slide Number

Total OVP Market: Market Engineering Measurements, Global, 2013 10

Total OVP Market: Digital Media Value Chain, Global, 2013 17

Total OVP Market: Key Market Drivers and Restraints, Global, 2014–2019 24

Total OVP Market: Revenue Forecast, Global, 2013–2019 34

Total OVP Market: Percent Revenue Forecast by Region, Global, 2013 and 2019 36

Total OVP Market: Percent Sales Breakdown, Global, 2013 49

Total OVP Market: Competitive Structure Global, 2013 50

Total OVP Market: Competitive Landscape, Global, 2013 51

Enterprise Segment: Top Three Participants 64

Enterprise Segment: Market Engineering Measurements, Global, 2013 65

Enterprise Segment: Key Market Drivers and Restraints, Global, 2014–2019 66

Enterprise Segment: Revenue Forecast, Global, 2013–2019 73

M&E: Top Three Participants 75

Media and Entertainment Segment: Market Engineering Measurements, Global, 2013 76

List of Exhibits (continued)

Exhibit Slide Number

Media and Entertainment Segment: Key Market Drivers and Restraints, Global, 2014–2019 77

Media and Entertainment Segment: Revenue Forecast, Global, 2013–2019 84

Enterprise Segment: Revenue Forecast, NALA, 2013–2019 89

Media and Entertainment Segment: Revenue Forecast, NALA, 2013–2019 90

Enterprise Segment: Revenue Forecast, EMEA, 2013–2019 96

Media and Entertainment Segment: Revenue Forecast, EMEA, 2013–2019 97

Enterprise Segment: Revenue Forecast, APAC, 2013–2019 102

Media and Entertainment Segment: Revenue Forecast, APAC, 2013–2019 103

Total OVP Market: Market Engineering Measurements, Global, 2013 111

Key Questions the Full Analysis Answers

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

What factors will drive the growth of this market? What are the challenges that will hold the market back?

Are the existing competitors correctly structured to meet customer needs? How will this market evolve?

What are the current pricing trends in the market, and how will it evolve?

What technical trends are shaping the marketplace today? What disruptions are on the horizon?

What segments and regions are most rapidly adopting OVPs? How will this landscape evolve?

Source: Frost & Sullivan

Partial List of Companies Interviewed

Source: Frost & Sullivan

• Kaltura • Brightcove

• iStreamPlanet • RAMP

• Vzaar • Haivision

• Unicorn Media • thePlatform

• Xstream • MediaPlatform

• Wistia • SambaTech

• VBrick Systems • Tata Consultancy Services

• Ooyala • Arkena

• MediaCore • Vidcaster

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Clarissa Castaneda Corporate Communications

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Research Authors

Lead Analyst

Anisha Vinny

Industry Analyst, Digital Media

Frost & Sullivan

Research Director

Mukul Krishna

Senior Global Director, Digital Media

Frost & Sullivan

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