As the Online Video Platform Market Crowds, Smart Companies Adapt

As the Online Video Platform Market Crowds, Smart Companies Adapt

There's no hiding the fact that the Online Video Platform (OVP) space is crowded, even more so than the Content Delivery Network (CDN) space was three years ago when the CDNs marched fearlessly down the inevitable path of commoditization. Today there are over 90 streaming video platforms fighting for customers and trying to secure a place in the future of online video. These businesses will need to differentiate themselves from the pack or they will find themselves either fizzling out or being acquired since the VC world has all but stopped investing in OVPs outside of Ooyala and Kaltura both closing ~$20 million rounds of funding late last year.

Online Video Streaming/Hosting Companies Begin to Pivot:

For the first time in the online video platform space we're beginning to see new business models arise in what appears to be small pivots.

Brightcove Moves to the Cloud with AppCloud & VideoCloud

Just last month Brightcove announced a new name for their OVP, Brightcove Video Cloud along with the launch of what appears to be an application management platform called App Cloud that can be used to build and operate native apps on websites, as well as Apple iOS and Google Android smartphones and tablets. This is an interesting move for the largest online video platform provider, taking advantage of not only the over-hyped "cloud" technology, but also the wildly popular and successful app development world. As the Online Video Platform Market Crowds, Smart Companies Adapt

Kaltura Moves to Market their Platform via Partners & Resellers:

As the Online Video Platform Market Crowds, Smart Companies AdaptIn another May announcement, open source online video platform Kaltura touted its new partner program designed to help their customers make the most of their online video solutions. The company is boasting that it has 100 partners geared towards system integrators, value-added resellers, media consultants, OEMs and more. This is not so much a pivotal move by Kaltura, but rather another move coupled with their open source, on-premise, and hosted solutions to further set them apart from the OVP pack.

Unicorn Media - The "Workflow Management" Video Company:

As the Online Video Platform Market Crowds, Smart Companies AdaptAnother big play in the space came from Unicorn Media just a few weeks ago with its unique ONCE platform allowing publishers to upload content one time and seamlessly syndicate it out to any mobile device. It not only pushes content out ubiquitously, but also dynamically monetizes it and provides real-time analytics so publishers can see how their ads are performing from any ad provider including their own. Unicorn continues to define themselves as a "workflow management" video company, similar to Twistage, allowing its solutions to be plugged into existing systems reducing the complexity of disparate systems or large scale build-outs.

New Video Hosting & Streaming Platforms Keep Popping UP!

As the Online Video Platform Market Crowds, Smart Companies AdaptThen there are announcements from companies such as Red Bee Media, proclaiming to be one of the next generation streaming video platforms. The company's RedPlayer is an "enhanced online video platform" that includes features such as high-quality images, smoother playback, sophisticated security that utilizes the latest DRM platforms, and integration of live content. I'm not sure what's new/s here, but at least their hearts are in the right place as they clearly see, as do I, the need to further develop and define the space with new technology and improved business models.

Innovation & Diversification will Help Combat Congestion

I've seen a total of 109 OVPs come into the space over the past several years, 12 of which were acquired, and 13 that fizzled out or changed business models entirely (no longer an OVP). Despite the 12% failure rate, we saw nearly the same percent of acquisitions, which indicates to me the online video platform space has proven to be a worthy endeavor not to mention the fact that viewership is still climbing with over 176 million people watching online video in May alone. Continued innovation and the ability to remain nimble are the keys to success for OVPs and I'm sure we'll see plenty of both in the years to come.


Don't Miss Out - Join Our VIP Video Marketing Community!
Get daily online video tips and trends via email!


About Our Contributing Author - Kristopher Drey
Kris has been in the online video space for the past 5 years having spent 3.5 years with Fliqz, Inc. as Vice President of products and marketing. Kris watched the online video platform space become increasingly crowded and complex and realized the need for a service such as VidCompare that would bring clarity and guidance to business decision makers looking for online video services. Kris tapped into his 6 years of building and managing comparison engines at CNET Networks to create an unbiased, fair, and deeply informative interactive directory of Online Video Platform providers at http://www.vidcompare.com



Please Note: Opinions expressed in this article are those of the contributing author and not necessarily that of

Become a Contributor: Occasionally, we like to offer experts within the online video industry the chance to write a post for ReelSEO. We like it because it offers you readers great content, and it comes directly from those in the field that are working on the technologies to power this online video revolution of sorts ;-) If you are interested in becoming a contributing author, please feel free to let us know. Read our post on becoming a contributor for additional information.

What do you think? ▼
  • Charlie Davis

    Kris - great article, thank you. I agree, just the number of OVPs in the market suggests a large number of them will fail while the strong will adapt and evolve in time - this is a very fluid market and a rare instance to witness. From my seat, partnerships are the most critical component to staying alive. When it comes to standing out among a very crowded market, OVPs should be thinking what other companies, even competitors, can offer that may build a better overall product for their customers. I don't think its feasible in cost or time to develop everything yourself if you're an OVP - even the big players like Brightcove have built strong ties among content, CMS, and tools providers. OVPs have a certain basic formula in their expertise (encode, host, report, and maybe include ads) but then what? If their core strength is only in the basic formula, that won't last long. Kaltura and Brightcove are great examples of extending their capabilities and their audience by branching out. I guarantee, those OVPs that continue to try to do everything themselves will fizzle or pop over the next three years, tops.

    Out of curiosity, you mention 13 OVPs "fizzled out or changed business models entirely (no longer an OVP)." Can you tell us which ones those were? Btw, that would be cool if a Vidcompare visitor could see a chart of the OVP market with stats (rise and fall, etc) based on the entries in your database. Just a thought :)

    Thanks,

    Charlie Davis
    www.chazdavis.com

    • http://www.facebook.com/profile.php?id=1788797139 Vid Compare

      Great feedback and insight Charlie, thanks for posting. Yes, I have the list of OVPs that have come and gone which I will send to you. Also love the idea of the statistical timeline which I'll definitely work on. Thanks again!

      Kris

  • http://mediacore.com/ Stuart

    I definitely think that diversification in the online video platform market is an absolute must for companies that are contending within the space. There's a lot of good companies out there, but too many are building things along the same feature-set, and many are competing too head-to-head with the likes of BrightCove, KIT and Ooyala. The big guys already have a substancial lead, but there's plenty of room in the market for new entrants with a different spin on the space.

    Will be interesting to see how things develop this year. Enjoyed the read!