MVPs grow faster than CDNs and OVPs
August 30, 2012
Turnkey managed video platforms (MVPs) will grow faster than well-known content delivery networks (CDNs), such as Akamai and Limelight, and online video platforms (OVPs), such as Brightcove and Ooyala, accoridng to ABI Research.
Synacor, MobiTV, and QuickPlay lead the MVP pack, and each has its own focus. Synacor monetises cable and telco websites with video, MobiTV runs mobile video distribution for the US mobile operators, and QuickPlay specializes in sporting event distribution to mobile as well as a TV Everywhere offering. MVPs distance themselves from the OVP competition by taking on more risk, in some cases licensing content directly, and in other cases making revenue sharing relationships rather than charging on a per-asset delivered rate, according to Sam Rosen, practice director of TV & video at ABI Research.
MVPs see growth of 135 per cent from 2012 to 2017, while the video platform market as a whole will grow 105 per cent. However, MVPs are also likely to experience more profitability than other video platform players. Mr. Rosen continued, MVPs higher profitability is linked to their specialization. Unlike OVPs, MVPs have intimate knowledge of the content owners product. In addition to the companies listed above, NeuLion, for instance, serves primarily college and professional sports teams, while start-up Digidev is aiming to assist movie content owners in monetizing their archival collections. MVPs are responsible for 30 per cent of a $2.1 billion dollar annual market for video delivery worldwide in 2012, growing to 35 per cent in 2017.