Irdeto Launches ‘State of the Video Entertainment Industry’ Report
AMSTERDAM – March 14, 2024 – 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.
To discover the full insights from the research, please download the full whitepaper, here.
A survey was conducted of 143 participants in January and February 2024.
About Irdeto
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.
To discover the full insights from the research, please download the full whitepaper, here.
A survey was conducted of 143 participants in January and February 2024.
About Irdeto
Irdeto is the world leader in digital platform cybersecurity, empowering businesses to innovate for a secure, connected future. Building on over 50 years of expertise in security, Irdeto’s services and solutions protect revenue, enable growth and fight cybercrime in video entertainment, video games, and connected industries including transport, health, and infrastructure. With teams around the world, Irdeto’s greatest asset is its people, and diversity is celebrated through an inclusive workplace, where everyone has an equal opportunity to drive innovation and support Irdeto’s success. Irdeto is the preferred security partner to empower a secure world where people can connect with confidence.
For more information, please visit www.irdeto.com.
About Caretta Research
For more information, please visit www.irdeto.com.
About Caretta Research
At Caretta Research we know how the media technology landscape is complicated. We care about helping media technology buyers and suppliers understand the market and make great decisions based on accurate data and focused insights.
Through Caretta Portal and Caretta Consulting we combine decades of experience in the industry with continuous hands-on research and an extensive network of technology buyers and decision-makers to help vendors understand and target their potential market, and to help buyers identify the most-suitable solutions—saving time, reducing risk and lowering costs.
To learn more visit www.carettaresearch.com
For more information, contact:
Irdeto Media Team
media@irdeto.com
Through Caretta Portal and Caretta Consulting we combine decades of experience in the industry with continuous hands-on research and an extensive network of technology buyers and decision-makers to help vendors understand and target their potential market, and to help buyers identify the most-suitable solutions—saving time, reducing risk and lowering costs.
To learn more visit www.carettaresearch.com
For more information, contact:
Irdeto Media Team
media@irdeto.com