A new report produced by Caretta Research on behalf of digital video experience company Irdeto has found that more than three-quarters of pay-TV, telco and streaming operators have moved towards a single common backend platform to serve all devices and consumer platforms.
The findings of the report are based on research across the video entertainment industry conducted in January and February 2024, with more than 60 operators, streamers and broadcasters in every global region surveyed.
Focused on how pay-TV, telco and streaming operators can build profitable video streaming platforms, it found the number one challenge operators face is revenue, with 53 per cent tackling subscriber churn, 48 per cent citing declining average revenue per user (ARPU), and 39 per cent focusing on innovation in monetisation, such as launching new services and investing in ad tech.
Looking at technology, 80 per cent of respondents they now have a single common backend platform to serve all devices and consumer platforms. This reflects the importance of flexibility, ease of integration, technology simplification, faster time-to-market, and lower total-cost-of-ownership, said the report.
It also found that just 12 per cent of operators are pursuing a mostly in-house build-it-yourself strategy, and even fewer have a single vendor approach.
“By far the most common approach is a hybrid one — nearly half of the operators responding to our research are mixing best-of-breed components from multiple vendors with carefully planned internal developments where operators feel there is a competitive advantage to be gained,” said the report.
For the majority buying some or all of their technology stack from vendors, a customised approach is most common — with over 40 per cent of operators buying components and then integrating and customising them further, it added.
Almost three-quarters of operators said they are planning to upgrade or expand their streaming tech in the next 12 to 24 months. A small proportion is planning a full greenfield relaunch or rebuild.
“To address the challenges faced today requires a holistic approach; a combination of innovative technologies, strategic partnerships, and continuous investment in infrastructure, and software platforms,” said Andrew Bunten, COO of video entertainment at Irdeto.
“By taking an informed and proactive stance on tackling these industry challenges, content distributors are better positioned to effectively monetise their content, drive revenue growth, and scale their businesses, while continuing to securely deliver compelling viewing experiences to audiences worldwide.”
