excerpt of the global online video platforms market...excerpt of the global online video platforms...
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Excerpt of the Global Online Video Platforms Market Analytics, Personalization, and Monetization
are Becoming Key Differentiators
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June 2014
Research Team
Lead Analyst Contributing Analyst
Anisha Vinny Industry Analyst
Digital Media Group
(+1) 210-247-3883
Dan Rayburn Principal Analyst
Digital Media Group
(+1) 917-523-4562
Strategic Review Committee Leader
Avni Rambhia Industry Manager
Digital Media Group
(+1) 765-418-9229
Research Director
Mukul Krishna Senior Global Director
Digital Media Group
(+1) 210-247-3850
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Executive Summary
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Executive Summary
• 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 Pay TV 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. Source: Frost & Sullivan
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Executive Summary (continued)
• 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.
• 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. Source: Frost & Sullivan
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Executive Summary (continued)
• 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.
• Ease of integration and interoperability, scalability, value-added services such as
analytics and digital rights management (DRM), and reliable service guarantees are
critical in this market. Source: Frost & Sullivan
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Executive Summary—Market Engineering Measurements
Total OVP Market: Market Engineering Measurements, Global, 2013
Market Overview
Market Stage
Market Revenue
Market Size for
Last Year of
Study Period
Market
Concentration
Growth $369.4 M
(2013)
$800.2 M
(2019)
53.9% (% of market share held by
top 4 companies)
Compound
Annual Growth
Rate
Customer Price
Sensitivity
Degree of
Technical
Change
13.7%
(CAGR, 2013–2019)
6
(scale:1 [Low] to 10 [High])
7
(scale:1 [Low] to 10 [High])
Decreasing
Stable Increasing
For a tabular version, click here. Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan
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Executive Summary—Market Engineering Measurements
(continued)
Competitor Overview
Number of
Competitors
Number of
Companies that
Exited*
Number of
Companies that
Entered*
25
(active market competitors
in 2013)
1
(2013)
0
(2013)
Decreasing Stable Increasing *Companies with revenue of more than $2.0 M.
Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan
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Hot Company Watch List
• Frost & Sullivan’s analysis of the OVP market identified MediaPlatform as having tremendous potential
for growth.
• Companies are put on the Hot Company Watch List by virtue of their strategies over the past 12
months that put them in a good position to strengthen their market position significantly over the next
year.
Source: Frost & Sullivan
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Hot Company Watch List—MediaPlatform
Source: Frost & Sullivan
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Hot Company Watch List—MediaPlatform (continued)
• MediaPlatform’s organizational strategy is to provide the best software platform to medium and large
enterprises for internally and externally managing live and on-demand video and rich media with
complete deployment flexibility: cloud, hybrid cloud, or on-premises. The company was founded in
2005; its clients include Facebook, General Motors, Ericsson, and Adobe.
• MediaPlatform has adopted a sound and proactive partnership strategy, identifying meaningful
synergies with customer requirements. The company’s partner network includes Intercall,
ServiceMesh (now part of Computer Sciences Corp), Winnov, and Adobe. Its products are
integrated solutions including SharePoint, Yammer, Salesforce.com, Eloqua, and 3PlayMedia.
• The company operates through a hybrid sales strategy, employing direct enterprise sales reps and
resellers and service provider partners. Flexible pricing models allow customers to purchase annual
subscriptions or pay per view. The MediaPlatform solution supports on-premises, cloud and hybrid
SaaS deployments.
• The company saw a phenomenal 60% growth in 2013, and is expected to grow 75% in 2014.
Source: Frost & Sullivan
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Enterprise Segment Drivers
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Mark
et
Re
str
ain
ts
Enterprise Segment—Drivers
Enterprise Segment: Key Market Drivers and Restraints, Global, 2014–2019
1–2 Years 3–4 Years 5–6 Years
Mark
et
Dri
vers
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
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
Impact: H High M Medium L Low
Note: Drivers and restraints are shown in order of impact. Source: Frost & Sullivan
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Enterprise Segment—Drivers Explained
The Need to Economically Deliver Video to Fast-growing and Highly Fragmented Video-enabled
Consumer Devices Drives Demand for OVPs
• The video-enabled consumer devices market grew in 2013. According to Cisco, 526 million mobile
devices were added in 2013, bringing the global number of mobile devices to 7 billion. Globally, smart
devices made up about 21% of total mobile devices and 88% of the mobile data traffic.
• By the end of 2014, the number of mobile-connected devices is expected to exceed the total global
population, and by 2018, this number is expected to exceed 10 billion.
• This huge spike in the number of video-enabled consumer devices and connectivity, along with the
improvement in data speeds, has created a consumer-driven demand for video content. Mobile video
is forecasted to grow 14-fold between 2013 and 2018.
• Demand for OVPs that can deliver this video content across multiple platforms and devices will grow
as a result. This driver will have a high impact on the OVP market throughout the forecast period.
Source: Cisco Visual Networking Index; Frost & Sullivan
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Enterprise Segment—Drivers Explained (continued)
Increased Use of Video for Content Marketing Driving OVP Demand
• Enterprise customers are using video more strategically. There has been a general increase in video
uptake across almost every vertical. In pharmaceutical and retail companies, sales enablement is a
popular use-case.
• There is a growing trend of consumer product companies seeing themselves as media companies in a
way. Even traditional companies such as Proctor & Gamble, Red Bull, and Kraft Foods are investing in
in-house video production and distribution for marketing to increase brand awareness, resulting in
greater OVP uptake.
Source: Frost & Sullivan
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Enterprise Segment—Drivers Explained (continued)
Widespread Availability of the Means of Video Production, and the Ease of Video Capture within
the Enterprise, Spurs Demand for Solutions to Manage Workflows
• The rapid proliferation of mobile devices means that billions of people around the world have a means
of video production in their pockets.
• The growth of Instagram, Facebook, and YouTube, has greatly increased content. This naturally
affects education, enterprise, entertainment, and premium media. Healthcare is a great example—10
years ago, operating rooms did not use video feeds; today, 5 or 6 feeds may be generated from a
single operating room.
Source: Frost & Sullivan
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Enterprise Segment—Drivers Explained (continued)
Seamless Video Management, Protection, Publishing, and Reporting are Becoming Business-
critical and Yet are Complex to Achieve In-house, hence Driving OVP Consumption
• The value proposition of online video is coming to be widely recognized by enterprises and M&E
companies alike. At enterprises, video is being used to drive new hire onboarding, training, employee
engagement initiatives, and customer and partner communication. M&E organizations are realizing the
benefits—the magnitude of the audiences and the tremendous profits that can be generated through
online video.
• Managing a company’s video assets; publishing these online; making them available globally in a
secure, scalable, and reliable fashion is difficult. DRM to secure online content, and analytics to
effectively track views and gain insights from this content, are key to best utilizing online video.
• IT departments at enterprises often do not have the skills to carry out these functions day-to-day and
prefer to rely on OVP vendors.
• Inability of M&E firms to manage the complexity of putting video online is creating an increasing
demand for OVPs to help manage and monetize video assets.
Source: Frost & Sullivan
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Enterprise Segment—Drivers Explained (continued)
Enterprise Video Enables Enterprises to Compress Business Cycles and Drive Cost Savings and
other Efficiencies, Fueling Demand for OVPs
• Enterprises are looking at online video far more strategically to efficiently communicate with employees
and partners, to combat churn, and to create a better trained workforce that improves competitive
strength and customer satisfaction. Online video plays a critical role in many modern business
processes. For example, business service firms must train global sales forces and technicians in
rapidly evolving tools and technologies; pharmaceutical companies must train clinicians, sales
representatives, and partners in new drugs; medical associations or industry consortia must provide
informational updates to their members; and companies must train new hires.
• In financial services, pharmaceutical, life sciences, law, and government agencies, regulatory
compliance and associated training is critical. Video enables effective employee training and tracking
of attendance and engagement.
Source: Frost & Sullivan
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Market Share and Competitive Analysis—Total OVP Market
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Pro
du
ct
Lin
e a
nd
Co
mp
eti
tive S
trate
gy
Competitive Landscape
Total OVP Market: Competitive Landscape, Global, 2013
10.0
9.0
8.0
Samba Tech
Xstream
thePlatform
Ooyala
Kaltura
Brightcove
7.0
6.0
Viddler VMIX
Wistia
RAMP Systems
Arkena
5.0
4.0
vzaar OpenText
Haivision
Vbrick
Piksel
Vimeo Pro
MediaPlatform
3.0
2.0
1.0
0.0
0 5 10 15 20 25
Market Penetration
Note: Size of bubble indicates size of company by revenue. Source: Frost & Sullivan
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Competitive Factors and Assessment
• The competitive landscape map illustrates the relative positioning of vendors in terms of their current
market share and strategic positioning for growth. The following factors were considered while
constructing this landscape.
• Current market share by percent of revenue: The size of the company’s circle and its X-axis coordinate
directly correlate to the current size and strength of the vendor’s market position.
• Relative strategic excellence is shown on the Y-axis. The higher a vendor’s strategy score, the more
likely it is to outperform the market and win market share from competitors. Factors include:
o Product specifications and functionality
o Product line strategy
o Geographical footprint
o M&A and partnership strategy
Source: Frost & Sullivan
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Market Share and Vendor Analysis—Market Leader
The top 4 participants in terms of global 2013 OVP market share were Brightcove, thePlatform, Ooyala,
and Kaltura.
• Brightcove: Based on 2013 revenue, Brightcove is the global market leader with a 22.8% share.
Brightcove provides OVP solutions for enterprises and digital media companies around the world. The
company essentially founded the OVP space, and has continued to innovate and dominate the
marketplace since its inception. Brightcove boasts a large client base that includes Intel, Bank of
America, Oracle, Puma, Showtime, and Viacom.
o With the addition of Zencoder to its stack, Brightcove’s range and performance of transcoding is
second to none. From a technological perspective, its compelling DRM offering and the depth of its
advertising solutions are huge differentiators. Apart from the fully integrated OVP, Brightcove has
also begun to offer a la carte solutions.
o Brightcove built a huge network of ecosystem partners and strategically acquired companies to add
value to its offerings. The recent acquisition of Unicorn Media is an example. The company has
also been successful in deploying teams to and capturing demand in the Middle East, Australia,
New Zealand, and throughout the APAC region.
Source: Frost & Sullivan
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Market Share and Vendor Analysis—Market Challengers
• Ooyala and Kaltura tied for second place in 2013 OVP revenue. Each company had a 10.8% market
share.
o Ooyala pursues a range of customers—broadcasters, media companies, publishers, enterprises,
and brands. As the OVP space has evolved and stronger niche capabilities have become essential
to differentiate vendors, Ooyala has done a solid job of rebranding itself to be a provider of cross-
device video analytics and monetization solutions. Dell, Telegraph, Sephora, Arsenal, and ESPN
are among its customers. Ooyala has been expanding its footprint outside the United States, and
expanding its focus to the more lucrative and challenging M&E market, over the past 2 years.
o Kaltura, the open source video platform, has differentiated itself by creating a dedicated suite of
apps for solutions in major verticals including digital marketing, enterprise collaboration, online
learning, media and enterprise, subscription, and publishing. Clients can mix and match from the
app exchange to suit their needs. The company focuses on education and enterprise customers.
With its new round of funding ($47 million), Kaltura has announced plans to enhance its product
offerings by investing in webcasting capabilities and lecture capture solutions.
Source: Frost & Sullivan
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Market Share and Vendor Analysis—Market Challengers
(continued)
• ThePlatform is the leader in the media and entertainment space, and has a 9.5% share of the total
OVP market. It is part of the Comcast family, which acquired it in 2006. thePlatform has an exclusive
focus on the premium TV and video market—working with studios, networks, and production houses.
On the distribution side, thePlatform caters to big Pay TV operators and broadcasters. CBS, Hulu,
BBC Worldwide, PBS, CBC/Radio Canada, and Oklahoma State University are among thePlatform’s
clients.
o Advanced publishing, a robust policy support system, and a unique content discovery experience
based on efficient metadata schema, are key differentiators of thePlatforms solution. Being the only
solution in the market with a 99.99% SLA for customer-facing services, it is no surprise that
companies like rely on its solution for viewers to access video anytime and anywhere in the world.
Most recently, thePlatform was chosen as NBC Olympics’ central OVP during its production of the
winter games in Sochi, Russia.
• RAMP Systems and MediaPlatform are both on Frost & Sullivan’s Hot Company Watch List.
• One of the main challenges in the OVP market is that customers do not know how to distinguish
between the various offerings. However, over time, many vendors in this space have developed
competitive differentiation. For example, Brightcove boasts of more than 6,000 customers—it caters to
enterprises, corporate communication departments, and publishers. ThePlatform focuses on the M&E
space and big Pay TV operators. Ooyala is popular among agencies, brands, and marketers, and
Kaltura—with “open-source” as its value proposition—is popular among education providers and
enterprise markets.
Source: Frost & Sullivan
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Market Share and Vendor Analysis—Contenders
Other market contenders in the OVP space are:
• Brazil’s Samba Tech is a key participant in Latin America with clients in Brazil, Colombia, Peru, Chile,
Mexico, Ecuador, and Chile, capturing many of the large enterprises. The company has built and
maintains a network of relationships and has figured out how to navigate this diverse market. It is
positioning itself as a partner of choice to help international participants enter the region.
• Sweden’s Arkena has offices in all Scandinavian countries, as well as in France, Germany, Spain, and
Poland. It is part of TDF, Europe’s largest operator of broadcast networks worth about $2.0 million.
HBO Nordic, Volvo, and Carlsberg are among its major clients. Arkena started as a webcasting
solution provider, and now owns and operates its own CDN infrastructure.
• Denmark’s Xstream was founded in 1999 and is headquartered in Copenhagen. It provides end-to-end
OVP, TV Everywhere, encoding and analytics solutions to broadcasters and media companies.
Disney, SES Platforms, and Canal Digital are among its customers.
Source: Frost & Sullivan
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Market Share and Vendor Analysis—Emerging and
Receding Participants
For OVP vendors that focused on distinguishing themselves in their positioning and market messaging,
and that sought presence in multiple regions, 2013 was rewarding.
• Emerging Participants
o After KIT Digital filed for bankruptcy, rebranding efforts gave birth to Piksel. The Piksel OVP solution
is used by major media companies and enterprises. Its solution has been built up over time,
primarily through acquisitions and product consolidation, including its acquisitions of Kyte, Kwego,
and Kickapps in 2011.
o Wistia, founded in 2006 and based in Somerville, MA, provides OVP solutions to mid-sized
enterprises around the world. Its solution has had particular success in Latin America.
o Haivision unveiled the Haivision Video Cloud, its live and on-demand OVP offering, in 2013. It
provides an end-to-end solution from live video encoding to analytics and reporting tools.
o Viddler, the UK-based Vzaar, and OpenText are other up and coming participants in this space.
o An emerging trend is that relatively younger companies are beginning to tailor offerings to particular
functional areas and verticals. For example, Vidcaster is an OVP built for digital marketing and
training use-cases specifically, while MediaCore is an OVP for the education market.
• Receding Participants: Though 2013 saw no major exits, some vendors saw a decrease in revenue
or lost market share outside the United States because of heightened competition and pressure on
prices and margins. VBrick Systems, for example, acquired Fliqz many years ago and rebranded it;
however, the company has been focused on the enterprise video management, webcasting and
transcoding space. Source: Frost & Sullivan
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Learn More—Next Steps
• Talk to an Analyst
• Arrange a Growth Workshop
• Explore the Growth Excellence Matrix 2.0
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