OTT, UHD, HEVC drive cloud video | Media Analysis | Business
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A study from ABI Research is predicting the enterprise video solutions market to pass US$49 billion by 2023 with almost a quarter of this value derived from cloud-based solutions.

TechnicolorABI’s TV as a Service report noted that while changes in viewer behaviour and the shift from on-premises hardware to cloud services have posed challenges to some market segments such as encoders/transcoders, middleware, and conditional access (CAS), new opportunities in OTT and cloud video are adding fuel to the market. It added that Ultra HD and ongoing codec transitions such as HEVC will also help balance out declines and slowing growth in some pay-TV markets.

The video market is expected to grow at a 4.8% CAGR from 2017 to 2023, but ABI say that the increasing trend of moving to the cloud will help the cloud video segment achieve a stronger 11.7% CAGR. Beyond the spread of cloud content and services, the industry is also looking forward to upcoming opportunities that will enrich the value proposition of content and, where possible, gain efficiencies to reduce costs.

“Video services and operators are increasingly moving workflows and operations to the cloud – doing so allows companies to better scale operations both up and down to meet demand and helps lower CAPEX spend, particularly among those companies without extensive history in the OTT space,” explained Michael Inouye, principal analyst at ABI Research and TV as a Service report author. “These changes also reflect the need for video platforms and services to be more flexible to meet the needs of a wider breadth of customers and, ultimately, end viewers.

“Artificial intelligence and advanced advertising are expected to help achieve some of the earlier stated goals around value proposition and efficiencies. In addition, other technologies and services, such as those in the smart home, will create new opportunities for operators to engage with customers – all of which will further redefine what it means to watch TV.”