The streaming frenzy is currently in full swing as major networks and studios continue to launch their own direct-to-consumer streaming services in 2020, competitors will likely scramble to offer content libraries broad enough to both attract and retain customers.
According to a report by Research and Markets, the global video streaming market is predicted to reach $688.7 billion by 2024, advancing at a 19.1 percent CAGR during the forecast period (2019-2024).
This is largely accredited to the rising popularity of video streaming worldwide, the YoY increase in Internet penetration, as well as the increasing influence of social media platforms.
The report highlighted that the accessing of the on-demand or live viewing of the content as per a consumer’s preference is termed as video streaming. This has been categorized into different services, including over-the-top (OTT), pay TV, and internet protocol TV (IPTV).
“The categories of the video streaming market based on offering are service and solution. Between the two, in 2018, the higher revenue share of 94.6 percent was contributed by the solution category. Along with being extremely popular in the entertainment sector, video streaming solutions have become an important component for sales, marketing, business development, and corporate communications,” the report stated.
The solution category is further subcategorized into IPTV, OTT, and pay TV; among which the fastest growing subcategory is the OTT.
Thus, to succeed within this industry, companies need to provide a reliable, proven and trustworthy service, while assuring customers that they’re in safe hands, according to Mikhail Grachev, CEO of SmartLabs.
SmartLabs is a leading provider of software solutions which drive multi-screen, multi-networks for the interactive TV sector and a manufacturer of award-winning design, feature rich set-top boxes.
SmartLabs delivers its premium services to over 6 million subscribers around the globe on multiple devices from set-top boxes to mobile phones.
“Operators do not want to be bleeding edge, as it is too big a risk. Primarily, we listen to our customers and understand where they want to take their business. We offer a quality of experience and proven technology, which new markets can trust,” Grachev told Inside Telecom.
This is important since the video streaming market is witnessing a shift toward OTT platforms.
“It has been observed that in countries, such as the U.S., more than 150 million people have opted for OTT services, whereas more than 180 million people, use smart TVs,” stated the report from Research and Markets.
Furthermore, people are opting for personalized content, which is pushing companies to facilitate high-margin visual entertainment by offering users bundled services. The rising popularity of OTT can be correlated to the rising consumer preference for specific content and better connection reliability offered by the service providers.
SmartLabs witnessed this opportunity, leading them into partnership with South Korean tech giant Samsung, and as Grachev noted, this partnership facilitated growth.
“[The partnership] gave us early access to support from Samsung in form of documentation and understanding their processes; this has led us to have a smoother process and release program for both customers and operators; while one of our European customers is working directly with SmartLabs on all new models of Samsung that are sold in that market,” Grachev added.
Thus, the increase of worldwide Internet penetration shines a bright light on the video streaming industry, which has allowed companies to tailor audio-visual content based on consumer tastes and preferences.