The quality of experience (QoE) video analytics sector is one of the most intriguing in the entire digital entertainment industry. Unlike other video technology sectors, no single company has won this market and the business cases for the valuable data being collected have the potential to stretch far beyond what is observed in the marketplace today.
Plenty of opportunities are there for the taking, to the tune of $2.3 billion by 2022, growing from just $681 million at the end of 2017, according to a new report from Faultline Online Reporter’s research arm, Rethink TV.
Netflix has perhaps pioneered QoE using various data capture and analysis techniques, as well as Amazon and a spattering of tier 1 operators. These streaming and pay TV titans will continue to invest significantly in-house and will account for $700 million of the forecast total by 2022. That means for the QoE technology vendors, the race is just beginning and pay TV players and broadcasters are projected to advance significantly within the next five years thanks to developments made within the vendor camp – building third party tools to behave more like the streaming majors of today.
Predictive churn reduction is the most urgent next case for the market, as the report discovered through conversations with industry experts. Machine learning algorithms are becoming a key driver of QoE video analytics business cases, using data to slow churn and then shift the marketplace gradually towards the creation of generic data warehouses in the cloud – which individual silo applications can tap into from multiple departments within a media entity.
Market possibilities are expanding to take in viewer behavior platforms, real-time CDN tuning, feedback for content selection and confirmation of advertising delivery. Growth will continue to encompass areas such as offering insights into network performance and selection, and into how service shopfronts perform to see the broadening of large scale video recommendation and search systems.
North America owns and will continue to own the largest market share for QoE video analytics. However, the region’s dominance will shrink from a 47% share in 2017 to 44% by 2022, as Asia Pacific soars from a 17% share in 2017 to 31% by 2022.
China will spearhead this growth, but an interesting insight from the report finds that various technical and licensing issues mean many pay TV operators do not have TV Everywhere systems or OTT delivery, which has slowed the region’s growth, as well as the abundance of AVoD offerings in China – which the forecast has not included.
While it is clear there is no QoE video analytics winner, Conviva is the current market leader in what has been coined phase one of QoE – relating to the siting of code within an app combined with a collection point and visualization tool. Nice People at Work (NPAW) follows Conviva’s lead, while non-traditional players such as Verimatrix and Akamai have also been mentioned as two companies spreading their wings into QoE video analytics.
Telemetry data collected from apps on smartphones, smart TVs and tablets for OTT video is a core component of building a picture of the viewing experience – going beyond technical video delivery insights to customer care and even marketing. Most companies have already embraced core telemetry around video QoE, and the report has forecast when predictive platforms will be introduced.
A major consideration is that vendors have a responsibility to ensure their systems, either hosted internally or on third party cloud infrastructure, can scale at any moment. The report implores there is no good having video delivery scale to double the number of subscribers, if the supporting QoE analytics systems fail to scale in parallel.
Companies discussed in this report include: Accenture Digital Video, Adobe, Agama, Akamai, Amazon, AMC, America Movil, Astellia, BeIn Sports, British Telecom, Comcast, Concurrent, Conviva, Crackle, Datalicious, Ericsson,Fox, Glob, HBO, Hooq, Hotstar, Huawei, Hulu, iFlix, IneoQuest, iQiyi, Kaltura, LeTV.com, Liberty Global, M6, Mediaset, MUX, Netflix, Nice People At Work, Norigin Media, NTT, Ooyala, PCCW, Pooq, Procera, Rakuten TV, Sandvine, Sky, Sling TV, Sony, Spideo, Stan, Telefonica, Televisa, TenCent Video, Think Analytics, Verimatrix, Verizon Digital Media Services, Vodafone, Witbe, Youku Tudou, Yupp TV and ZTE.