Irdeto releases 'State of the Video Entertainment Industry' report

Thursday, March 14th, 2024 
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Irdeto Launches ‘State of the Video Entertainment Industry’ Report

AMSTERDAM — Irdeto, the global leader in digital video experiences and security, in partnership with Caretta Research, has today released research that explores the current state of the video streaming market, with increasing revenues remaining a major challenge for service providers.

Focused on how pay-TV, telco and streaming operators can build profitable video streaming platforms, Irdeto and Caretta’s research reveals the number one challenge they face is revenue, with 53% tackling subscriber churn, 48% citing declining average revenue per user (ARPU), and 39% focusing on innovation in monetization, such as launching new services and investing in ad tech.

The report also explores how operators are focused on building a better user experience and integrating revenue-generating features, by maximizing technology agility and time-to-market.

Key themes explored include:

  • Operational Scale and Monetization: The research delves into how operators are strategically investing in technology to enhance operational scale, efficiency, and monetization, amidst tough market conditions. The biggest drivers for making those technology investments, in order, are adding new features (59%), scaling up the platform (46% of operators), reaching new devices (39%) and launching in new territories (21%).
  • Super Aggregation: A focal point of the study is the ongoing evolution of super aggregation platforms. While many operators are prioritizing content aggregation and a unified user experience, the research exposes that the journey toward super aggregation is still a work in progress for a significant number of platforms. From Irdeto and Caretta’s research, 56% of the survey respondents include third-party apps in their service offerings.
  • Technology Building Blocks: An in-depth analysis of how operators are navigating constrained budgets and limited internal resources by strategically choosing technology building blocks from trusted vendors. The focus is on accelerating competitive advantage, scaling rapidly, and integrating flexible solutions to drive revenue and profitability.
  • Diversification Beyond Video Apps: The survey data uncovers a shift in operators’ strategies, moving beyond video-centric offerings to include a diverse range of services such as smart homes, gaming, music, connected IoT devices, health and fitness apps, and even innovative advertising models. This strategic diversification is aimed at cultivating additional revenue streams from the expanding customer base, although as financial pressures continue, almost 40% of respondents highlighted the challenge of innovating and diversifying their revenue.

“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,” says 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 monetize their content, drive revenue growth, and scale their businesses, while continuing to securely deliver compelling viewing experiences to audiences worldwide.

A survey was conducted of 143 participants in January and February 2024.

Links: Irdeto; Caretta Research