Service Providers Moving Forward on Multiplatform Video Despite Unsure Payback, New Report Finds

NEW YORK, Sept. 17 /PRNewswire/ -- Consumer demand is driving service providers to develop multiplatform video services for the consumer's "three screens," but the revenue model for this service remains uncertain, according to a major new report from Heavy Reading (www.heavyreading.com), the research division of Light Reading (www.lightreading.com).

Multiplatform Video: Overcoming Technology & Revenue Challenges examines the trend toward multiplatform distribution of video, the drivers for content owners and service providers to enter into this space, and the overall technology components required. It will also share findings from a proprietary survey of 75 service providers worldwide on service providers' attitudes and strategies for multiplatform video, released exclusively in this report. These results are compared to findings from a 2007 survey, to identify opinion shifts and emerging trends in this space.

The report also includes in-depth profiles of 17 major vendors in the multiplatform video space, including traditional telecom vendors, specialized video equipment vendors, wireless media technology providers, and more.

For a list of technology suppliers analyzed in this report, please see:

http://img.lightreading.com/heavyreading/pdf/hr20100917_companies.pdf

"Service providers are bullish about their prospects in the multiplatform video space, and are looking at ways to extend their pay TV services to additional platforms," says Aditya Kishore, Senior Analyst with Heavy Reading and author of the report. "But they also face their share of challenges, because on both a technology and business front, the specifics of multiplatform video distribution remain unclear."

Most troublingly, there is no clear revenue model for monetizing multiplatform video. Kishore continues: "Some providers are exploring different models, including a straight incremental charge for multiscreen access, but no clear picture has emerged yet on how providers can monetize this capability. Most efforts today seem to be experimental in nature, or designed to add customer value and differentiate the provider. This means that there will be no return on the investment made for deploying multiscreen capabilities, at least for the moment."

Key findings of Multiplatform Video: Overcoming Technology & Revenue Challenges include the following:

Service providers worldwide are interested in multiplatform video. In our proprietary survey, 76 percent of respondents agreed that multiplatform video would be an important requirement for their business within the next five years. Of these, 38 percent strongly agreed. When asked what would make them prioritize multiplatform video more, 25 percent said it was already a top priority.

Consumer demand was the primary driver for service providers looking at multiplatform video. The growth of video on the Internet – and increasingly on mobile devices – has familiarized consumers with the idea of video consumption beyond the TV. Service providers feel they must cater to this demand. Interestingly, direct competition from online video distributors was not seen as much of a concern, though competition from other providers was. This is particularly true of larger service providers, with annual revenue of $1 billion or more.

A robust content management system will likely be required for multiplatform distribution. Managing various video formats and versions, tracking delivery and enforcing various windows and expiry rules, navigating varying metadata requirements and formats, etc. will pose a significant challenge for operators. At some stage, service providers offering three-screen solutions will need a robust content management system capable of supporting these complex requirements.

Middleware operators, VoD management systems, and online video publishing platform vendors are all battling for this role. The content management system will be the brains of the video operation, and the vendor that owns it will be the best positioned. As a result, many players are targeting this space. We believe that on-demand or specialized multiplatform content management systems are probably the best positioned worldwide.

Multiplatform Video: Overcoming Technology & Revenue Challenges is essential reading for a wide range of industry participants, including the following:

• Telecom service providers: How will the move toward multiplatform video distribution impact your network and business model going forward? What technology options are available to help evolve your existing video services toward the new, three-screen paradigm? Which revenue model(s) will enable you to capitalize on the multiplatform video opportunity? Which technology suppliers are in the best position to help prepare your network for the rigorous demands of multiplatform video distribution?
• Telecom equipment vendors: How do your products and solutions stack up against those of your competitors in the multiplatform video sector? Is your current and anticipated product portfolio in line with service providers' need to offer diverse video channels beyond the TV? Which types of technologies are service providers most interested in for managing the complexity of three-screen video services? How are emerging technology standards likely to shape the multiplatform video marketplace over the near and long term?
• Investors: How are evolving consumer habits and technology options shaping the multiplatform video marketplace of the future? Which members of the multiplatform video value chain – including service providers, content owners, and technology providers – will take the lead in shaping this growing market? How is the multiplatform model challenged by the complex regional arrangements and rights issues associated with video distribution? How will developing standards for multiplatform video influence winners and losers in this growing marketplace?

Multiplatform Video: Overcoming Technology & Revenue Challenges costs $3,995 and is published in PDF format. The price includes an enterprise license covering all of the employees at the purchaser's company.

About Heavy Reading

Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next-generation hardware and software.

About UBM TechWeb

UBM TechWeb, the global leader in technology media and professional information, enables people and organizations to harness the transformative power of technology. Through its three core businesses – media solutions, marketing services and paid content – UBM TechWeb produces the most respected and consumed brands and media applications in the technology market. More than 14.5 million business and technology professionals (CIOs and IT managers, Web & Digital professionals, Software Developers, Government decision makers, and Telecom providers) actively engage in UBM TechWeb's communities and information resources monthly. UBM TechWeb brands includes: global face-to-face events such as Interop, Web 2.0, Black Hat and Enterprise Connect; award-winning online resources such as InformationWeek, Light Reading, and Network Computing; and market-leading magazines InformationWeek, Wall Street & Technology, and Advanced Trading. UBM TechWeb is a UBM company, a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring; and, the development and monetization of B2B communities and markets. UBM's businesses inform markets and serve professional commercial communities – from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists – with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries are organized into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to http://www.unitedbusinessmedia.com.

SOURCE Heavy Reading

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