The global online video platform (OVP) industry is undergoing a transformation spurred by the decline of cable and the rise of OTT content and direct-to-consumer (D2C) platforms. Consumers now have endless media and entertainment (M&E) options, but intense competition and pricing pressures are limiting the ability to expand segment growth beyond a modest CAGR of 4% up to 2030. Moreover, the pressing challenge of subscription fatigue is pushing platform providers to continuously innovate through new content monetization and user engagement strategies.
ONLINE VIDEO PLATFORMS: GROWTH OPPORTUNITIES
- Expanding reach and scalability of OTT platforms in growing regions like the Middle East and Latin America.
- Developing broader solutions and wider toolsets for multiple business processes and different customer needs.
- Integrating immersive technologies like virtual reality (VR), augmented reality (AR), and mixed reality (MR).
- Companies to Action: Backlight, Brightcove, Edgio, JW Player, Kaltura, MediaKind, Muvi, Synamedia, Vimeo, and Wowza.
Today, long-term macroeconomic factors are forcing participants across the M&E ecosystem to maximize output with fewer resources. Content creators and distributors are facing intensified scrutiny and tighter budget constraints. Additionally, network operators, broadcasters, and online publishers are seeking new ways to monetize existing assets. Against this backdrop, the following imperatives are urging providers to pivot their growth strategies:
- Innovative Business Models– identifying new revenue streams to monetize existing assets, while adapting to hybrid models that combine advertising, subscriptions, and transactional pay-per-view revenue.
- Increasing Competitive Intensity– boosting engagement, driving differentiation, and minimizing costs to reduce customer churn amid increasing saturation of entertainment and streaming services.
- Disruptive Technologies– harnessing the potential of large language models (LLM), machine learning (ML), artificial intelligence (AI), and generative AI (GenAI) for improved analytics, tracking, and personalization.
Mapping the Evolving OVP Provider Landscape
Amid these headwinds, Frost & Sullivan’s latest analysis dives deep into the growth opportunities and emerging technology strategies of 10 leading OVP providers including Brightcove, Backlight, and Wowza. Download now to know more about:
- Competitive benchmarking of disruptive OVP technologies and tools.
- Best practices that help combat diminishing OVP revenues.
- Partnership and collaboration strategies to maximize customer value.
Harnessing New Strategies for OVP Growth
The OVP segment for M&E applications reached $860 million in 2023. Between 2024 and 2030, it is expected to grow further, reaching $1.12 billion in revenue. However, M&E brands, content owners, and content aggregators are facing intense competition as more players in the ecosystem vie for market share. Additionally, the surge in subscription services, alongside traditional linear TV, appears to have reached a saturation point. Consumers are reducing the number of services they pay for, and advertising revenue for many linear broadcasters is on the decline. As the video platform and services market trends toward consolidation, providers can adopt the following best practices to stand out and remain competitive:
- Harnessing AI-enabled tools to optimize computing resources, content delivery, and infrastructure management.
- Minimizing customer churn by developing new frameworks for content monetization, interaction, and personalization.
- Providing reliable digital infrastructure and robust network capacities to facilitate the growing popularity of live streaming.
To view detailed innovation strategies, competitive differentiators, and best practices in OVP, click here.
In conclusion, as the OVP industry evolves amid fierce competition and changing consumer needs, innovation remains crucial. By embracing AI, enhancing infrastructure, and rethinking monetization strategies, providers can better navigate industry challenges, differentiate themselves, and capitalize on emerging growth opportunities in the M&E landscape.
