better than best-effort: opportunities and challenges for...
Post on 19-Jul-2020
7 Views
Preview:
TRANSCRIPT
Better than best-effort:Opportunities and challenges for video service providers and vendorsRob GallagherResearch Director, Consumer Services+44 (0) 7876 791 092rob.gallagher@ovum.com@robdgallagher
Ovum | TMT intelligence | informa2 Copyright © Informa PLC
OTT will account for a growing share of TV revenues and an even larger share of users
Source: Ovum
Ovum | TMT intelligence | informa3 Copyright © Informa PLC
OTT delivery is creating real new value for pay-TV operators too
• Premium multiscreen a growing reality
• Standalone OTT for large “cord-never” market
• Live esp. for sport a key requirement/differentiator
Source: Ovum
Source: Ovum
Ovum | TMT intelligence | informa4 Copyright © Informa PLC
Up to 439mn SD-capable homes
At least 425mn HD-capable homes
At least 309mn 4K-capable homes
Consumer broadband bandwidth shouldn’t be a problem…
Source: Ovum
Ovum | TMT intelligence | informa5 Copyright © Informa PLC
And yet… less than half of broadband users have “excellent” or “good” video experiences
Source: Ovum
n= 7,330
Ovum | TMT intelligence | informa6 Copyright © Informa PLC
There is a correlation between quality and broadband speed… but not enough
Source: Ovum Source: Ovum
n= 7,330 n= 7,330
0%10%20%30%
40%50%60%
70%80%90%
100%
1Mbps to5Mbps
5Mbps to10Mbps
10Mbps to20Mbps
20Mbps to50Mbps
50Mbps to100Mbps
100Mbps+
How would you describe the picture quality when watching TV or video over broadband?
The picture is very poor The picture is acceptable
The picture is of variable quality It is good quality
It is excellent quality
Ovum | TMT intelligence | informa7 Copyright © Informa PLC
Global, Internet traffic by type, 2013, 2015, and 2020Ovum’s Global Broadband Experience survey of 15,000
consumers in 30 developed and developing markets
There’s never been a better time for CDNs and operators to collaborate
Source: Ovum
Ovum | TMT intelligence | informa8 Copyright © Informa PLC
CDN providers also need to increase quality of service - in more ways than one
Ovum | TMT intelligence | informa9 Copyright © Informa PLC
Video performance issues have opened the door for challenger CDNs
Key
Global pureplay
Regional pureplay
Carrier CDN
Source: Ovum
n= 35
Ovum | TMT intelligence | informa10 Copyright © Informa PLC
66% use two or more CDNs 35% of single CDN users plan to go multi-CDN
The crucial foot in that door? Multi-CDN strategies
Source: Ovum Source: Ovum
n= 52 n= 17
Ovum | TMT intelligence | informa11 Copyright © Informa PLC
Quality of services trumps cost per GB Multi-CDN use is increasingly sophisticated
The rise of multi-CDN strategies will be unstoppable
20%
37%
43%
46%
54%
54%
Best interconnect with ISPs
Load balance between CDNs
Support different applications
Lowest cost per gigabyte (GB)
Ensure the highest QoS
Serve different countries/regions
Why do you use more than one CDN provider in Europe?
Third-party platform
66%
In-house platform
20%
Do not use14%
Do you use any of these platforms to manage your use of multiple CDN providers?
Source: Ovum
n= 35 n= 35
Source: Ovum
Ovum | TMT intelligence | informa12 Copyright © Informa PLC
Drivers Solutions
Multi-CDN will help DIY CDN spread beyond major OTTs and network operators
Managed
Licensed
Open source
Multiscreen now core
Major TV events
Unreliable CDN performance
Lack of transparency
Service integration
Need to reduce costs
Spare capacity
Ovum | TMT intelligence | informa13 Copyright © Informa PLC
OTT delivery has crossed the line from disruptor of the status quo to creator of value for both new and existing players
The theory that ever-growing broadband speeds alone will provide the headroom OTT video needs to seriously advance and improve is being challenged by reality
Great video experiences are now essential to broadband consumers, so there’s never been a greater incentive for operators, CDNs and content providers to collaborate
Quality of service - both in terms of network performance and customer support - will increasingly determine success in the CDN market
But no improvement in quality of service will halt the rise in multi-CDN and DIY CDN strategies - there’s just too much at stake
Key takeaways: Being better than best effort
Thank you. Questions?Rob GallagherResearch Director, Consumer Services+44 (0) 7876 791 092rob.gallagher@ovum.com@robdgallagher
top related