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Pay-TV analytics market ‘to grow by 105 per cent’ in next five years

Market is expected to hit $3.7 billion by 2022

A new report from ABI Research says the pay-TV analytics market is expected to hit $3.7 billion by 2022, an increase of 105 per cent.

The report, titled Analytics Opportunity in Video Services, suggests the likes of Netflix, Sky, Telstra, Comcast and other video companies can differentiate themselves from their peers by their strong use of analytics to optimise and improve operational metrics.

Pay-TV companies are starting to transform products to support an analytical focus, moving in the direction of artificial intelligence and machine learning to enable self-optimisation.

“Today’s siloed solutions mean that each business unit may rely on separate sources of data in solutions coming from different vendors, especially as small and mid-size video services,” said Sam Rosen, managing director and vice president, ABI Research. “Best-in-class OTT companies and Tier One operators with multiple services in diverse geographies started to build unified data platforms that centralise data and then provide access to every group based on their functional requirements.”

“Offering an analytics dashboard is table stakes for technology companies offering any component of a video distribution service. The ability to charge for the solution derives from moving from descriptive to predictive analytics, as well as offering modules for new roles within the video service provider.

“True next-generation solutions must offer comprehensive data architectures, as well as offer tools to enable prescriptive analytics or self-optimisation via artificial intelligence and machine learning.”