Akamai edging out Ooyala, Brightcove in multiscreen video service market
Editor | 25-04-2014
As both the over-the-top (OTT) and TV everywhere markets reach new levels of penetration, multiscreen video service technology providers are now beginning to cash in says ABI Research.
Indeed the company's Multiscreen Video Service Providers Competitive Assessment shows that the market is rapidly growing, and will likely be worth $4.6 billion in 2019, up from $2.3 billion in 2013.
Cloud video service companies are providing the backbone for video services, services from content providers and sport's leagues, and film studio's nascent movie stores and UltraViolet offerings.
The survey data also shows that the cloud video services market is led by content delivery network (CDN) firm Akamai, which has what ABI calls "impressive" relationships with nearly every other vendor in the video ecosystem to handle the video distribution needs of Tier 1 customers. Second in the market is Ooyala, the second largest (by revenue) online video platform (OVP) which has focused continually on the needs of media customers while Brightcove has grabbed third place after acquisitions of Zencoder (cloud based encoding platform) and more recently, Unicorn Media (with a strong ad insertion capability).
"This market was characterised by significant in-house versus off-premise decisions just 12 to 18 months ago," said ABI Research practice director Sam Rosen. "Now, most traditional broadcasters and distributors, as well as new entrants to the market are universally adopting cloud services until their solutions scale to number in the top five to ten video services. Like any complex and rapidly changing market, there are significant opportunities as well as a few pitfalls."
In future, ABI expects the OVP category to grow faster than other business models servicing the overall market.