Video delivery platforms market set to double by 2017 to over $4BN

Joseph O'Halloran | 29-08-2012

Buoyed by growing TV everywhere and over-the-top (OTT) video services, revenues for video platforms distributing video on behalf of media and entertainment companies is likely to rocket over the next five years from its present $2.1 billion to over $4 billion according to a new survey by ABI Research.

Indeed, ABI’sVideo Delivery Hardware and Platforms report shows that the likes ofComcast Xfinity, HBO Go, Netflix, the BBC iPlayer, and Sky Go are providing a huge boost across the online video ecosystem which includes online video platforms (OVPs), managed video platforms (MVPs), content management systems (CMSs), and content delivery networks (CDNs).

In the latter category, ABI calculates that Akamai, has a commanding lead of the video delivery market with about $475 million worth of revenues in 2011. Despite being set back by growing pains in early 2012, KIT Digital is attributed with leading the market for content management systems with nearly $175 million in video delivery revenues from media and entertainment companies in 2011. Brightcove is identified as the largest OVP with $64 million in 2011 media & entertainment revenues and Synacor, whose primary business is hosting websites for cable MSOs, is said to lead out the MVP market with nearly $91 million in 2011 revenues.

According to Sam Rosen, practice director of TV & video at ABI Research, many of these companies claim the same competencies in video delivery yet each offers a unique piece of the solution.He added that smaller content owners and those wanting social media integration and simple platforms lean to OVPs with, moreover, managed video platforms being helpful for operators that don’t have the technical expertise to deliver a video service, and want a turnkey solution.