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Report: $2B video delivery platforms market to double by 2017

Mon, 08/27/2012 - 2:55pm
Mike Robuck

According to a study released this morning, revenues for video platforms that distribute video on behalf of media and entertainment companies, including cable and satellite distributors, will reach $2.1 billion this year and double to more than $4 billion by 2017.

The report by ABI Research broke down the various vendors that were enabling over-the-top video and TV Everywhere services. Thanks to services from Comcast, HBO Go and Netflix, among others, the companies, including online video platforms (OVPs), managed video platforms (MVPs), content management systems (CMSs) and content delivery networks (CDNs), were all growing at a rapid clip.

Among CDN companies, ABI said Akamai had a commanding lead in the video delivery market with about $475 million in revenue last year. KIT Digital, which ABI said suffered through serious growing pains earlier this year, leads the market for content management systems, with nearly $175 million video delivery revenues from media and entertainment companies in 2011.

Brightcove came in as the largest OVP with $64 million in 2011 media and entertainment revenues. Synacor, which hosts websites and enables TV Everywhere services for cable operators, was first in the MVP market with nearly $91 million in 2011.

“Many of these companies claim the same competencies in video delivery,” according to Sam Rosen, practice director of TV and video at ABI Research. “However, each offers a unique piece of the solution. Smaller content owners and those wanting social media integration and simple platforms lean to online video platforms (OVPs).

“Managed video platforms (MVPs) are helpful for operators that don’t have the technical expertise to deliver a video service and want a turnkey solution. Content management systems (CMSs) are attractive to the largest operators with diverse assets and a desire to manage all their video centrally. Finally, content delivery networks (CDNs) handle the logistics of video delivery for nearly all the players.”

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