Skip to main content

How OTT is Forcing Legacy Media to Evolve

The highly efficient approach that Google applies to storing and serving digital video content is apparently influencing the legacy video distribution value-chain to evolve.

Proving once again, that necessity is the mother of invention -- particularly when meaningful new competition forces an industry to change.

According to In-Stat, traditional Video-on-Demand (VoD) services, and their typical siloed video services currently use a great deal of proprietary -- or industry-specific (i.e. very expensive) -- equipment. They see traditional and pay-TV service providers migrating to more efficient Content Delivery Networks (CDNs) and data center models based on server virtualization.

In-Stat believes that this migration enables content portability and will have a direct impact on equipment vendors, service providers and content owners. Meaning, this will be disruptive to the legacy status-quo.

"Increasing usage of over-the-top (OTT) Internet video is driving traditional TV service providers to launch TV Everywhere initiatives," says Gerry Kaufhold, In-Stat analyst. "The data center approach promises more flexibility to manage content for delivery to multiple device types, enabling service providers to offer any content, on any platform, in any location."

In-Stat believes next-generation on-demand approaches increase content owner influence, and greatly expand the delivery options. Among other impacts, content owners and service providers will need to re-negotiate licensing agreements that will reflect more flexibility and responsiveness to consumer demands.

The CDN trend will also drive a shift in the type of equipment and features that manufacturers provide to service providers to handle video delivery.

In-Stat's market study found the following:

- Over the next five years, the worldwide value of Content Delivery Network (CDN) services will pass $2 billion annually by 2011 and continue growing thereafter.

- Barriers, such as digital rights management, competing encoding formats and standards, and restricted bandwidth remain a challenge to meet new demands for flexibility in content use.

- Adaptive Bit Rate Video approaches will permit IP-networks to deliver a quality User Experience at lower bit rates.

Popular posts from this blog

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

The Metaverse Raised Virtual Reality Interest

After years of slow growth and limited use cases, the Virtual Reality (VR) market is now forecast to grow significantly over the next five years. Consumer interest in VR games and media continues to grow after the COVID-19 pandemic accelerated activity. At the same time, the need for employee enablement and immersive content within the enterprise environment remains strong. According to the latest market study by ABI Research, over 90 million Head Mounted Display (HMD) shipments in 2027 will drive total VR market revenues to reach over $95 billion across hardware, software, and services. Virtual Reality Market Development "The virtual reality market is no stranger to false starts, with identifiable efforts in VR dating back to the 1980s and 1990s. While the technology never found purchase results, the increased capability of VR hardware combined with the demand for immersive content in numerous markets, presents a significant opportunity," says Eric Abbruzzese, research direc

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe