Stefan Lederer, CEO and co-founder of Bitmovin, explains how 2023 has seen a move towards making viewers feel as close to the action as possible.
What industry trends have particularly stood out for you in 2023, and why?
In 2023, the streaming and video industry demonstrated a focus on reducing latencies to provide the most ‘live’ entertainment possible. This has been underpinned by the consumer desire for more and greater live streaming experiences. In fact, our own recent data revealed that live streaming is the second most watched form of content, gaining on VoD. Viewers understandably want to feel as close to the action as possible which has driven the increase in platforms offering live experiences.
Another ‘trend’ that emerged slightly later in the year and has developed at a rapid pace, is the adoption of AV1. Whilst Netflix and others previously introduced AV1, it has been Apple’s implementation of AV1 decoders in its iPhone 15 model that has expedited the adoption of this codec in the video industry. It seems, wherever this particular ‘tech giant’ goes, the industry follows. What this also demonstrates is that Apple and its ‘followers’, are recognising the increasing significance consumers are placing on video experiences.
Perhaps driven by the economic climate in 2023, there has also been a revival of the debate of in-house solutions versus open source. Many media companies and others looking to implement video have questioned whether it is worth the resources to build tailored and unique in-house solutions.
Finally, we’ve seen an enhancement in measurement, particularly with regard to CMCD. CMCD plays a crucial role in optimising video streaming by enabling comprehensive data analysis and real-time adjustments. Combining client-side data with CDN logs, CMCD allows for the correlation of metrics and the identification of issues that affect streaming performance. Implementing CMCD tools has been a key trend in the industry, alongside an increased focus on real-time measurement.
What impact are you seeing those trends having on the media and entertainment industry?
Overall, the impact these trends are having on the media and entertainment industry is quite straightforward. There are more and better video experiences available, especially when it comes to live content. As previously mentioned, live streaming is becoming the apple of the customers’ eye, and streamers are keenly aware of this. As such, all these trends point to increasing live video experiences and ensuring quality video experiences over a low bandwidth.
Regarding the in-house versus closed source debate, as solutions from streaming infrastructure companies have become increasingly affordable, with multiple products to fit a variety of use cases, media companies have been re-evaluating the resources they have been spending on in-house solutions.
CMCD and improved real-time measurement, alongside real-time adjustments, has had a significant impact on viewers’ second favourite method of viewing content: live streaming. The real-time measurement and identification of issues negatively affecting streaming performance allows for video developers to optimise on-the-move so to speak. Ultimately, this provides an even greater and seamless viewing experience for customers, and something we will continue to see an even greater focus on as live streaming continues to become more important to viewers.
How do you see those trends developing further in 2024?
Looking ahead to 2024 I expect the conversation and targets around low latency for live streaming to change. No longer will it be about chasing the lowest latency possible, so that viewers are completely in-sync with the event, despite being potentially thousands of miles away. Instead it will be about hitting acceptable latencies. Setting targets of an eight to ten second latency is acceptable for many people and allows providers to instead maximise the quality of the video whilst remaining within that target latency. This boils down to the fact that video quality will remain more important to viewers than latency – it’s better to see the result 8 seconds later in high-quality video, than through grainy, blurred images that are in real-time.
AV1 will embark on a rapid rise in popularity, potentially becoming the most adopted codec in the video industry (except for specialist scenarios, e.g. Dolby). Increased adoption amongst the top players, like Apple, will undoubtedly lead to a dramatic decrease in the initial costs of AV1 solutions. Providers will place a greater emphasis on optimising the codec, allowing for a more open and democratic codec.
Over the past year we have seen some streaming platforms create multiple and successful partnerships with other platforms or studios, allowing customers to access multiple subscriptions and a wider variety of content through one platform. Prime Video, for example, has a large number of additional services customers can add onto their current subscription. Moving into 2024, it is highly likely that this trend will continue with large telcos and broadcasters becoming aggregators of these services.
Do you expect to see any new trends within the industry in 2024, and what will they be?
Predicting a new technical trend for 2024 is difficult, but it is also unlikely that anything revolutionary or new will suddenly appear and become the mainstream. Instead, it’s about the development of previously mentioned technologies and their wider adoption.
However, significantly, the main trend in the industry will be growth. In 2023 the mood music of the industry has predominantly been one of cut-backs, cost-savings and ‘staying the course’. And for very good reasons of course. But this is set to change in 2024, with the key trend being a laser focus on business growth. From all segments of the industry, publishers and providers alike, there will be larger and sustained investment in new technical innovation to create the greatest possible viewing experiences for customers and also a focus on developing and sustaining new revenue strategies. There will be investment in new products and services, with different monetisation models being creative or evolved to ensure the industry hits profitability and growth goals.
