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August 26, 2013

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New OTT Video Report from StreamingMedia.com + Cool Infographic

Many reports have been conducted on the consumer usage and predicted usage of over-the-top (OTT) video. For example, the Accenture’s 2013 Video-Over-Internet Consumer Survey provided insight into “online video behaviors, perceptions and aspirations” and how these impact service providers’ plans.

While these types of reports help uncover consumer demand, we wanted to find out more about how service providers, content owners and technology providers are making business decisions based on these trends. So we turned to StreamingMedia.com to help provide a new perspective.

Verimatrix sponsored a recent survey of media industry executives worldwide to uncover their views on the current and future state of OTT video from inside the trenches. Respondents provided new details about the business, highlighting shifts in models, commercial and technical challenges and of course security implications for this growing business sector.

The report, OTT Video: Coming to a Paid Channel Near You, reveals that the number of companies involved in OTT delivery will grow and the proportion of those businesses substantially invested in OTT technologies will more than double over the next 3 to 5 years. Additionally, the pay model for OTT services is seen as growing in dominance compared to a free or advertising-supported model, which is a very significant change of perception for Internet video that was initially interpreted as a free alternative to traditional TV services.

An additional objective in conducting this survey was to determine the adoption and planned adoption of the leading OTT delivery protocols, standards and security technologies – as these are clearly in flux. For OTT video security, the survey found that more than half of respondents (53%) prefer HTTP Live Streaming (HLS)—with enhanced rights management or basic encryption—which is twice as much compared to both Adobe Flash Access (25%) and Microsoft PlayReady (23%).

Other responses show a significant interest in DASH delivery, which was nice to see as we are a strong public supporter of DASH as a standard, including the use of ISO CENC as a standardized encryption mechanism,  but some way out in time.

Our own approach is to consider encryption standards (tied to delivery format) and key management (or DRM) as largely independent issues. We do, of course, emphasize our own security technology to manage the associated encryption keys for all types of operator business models; after all, key management is our business.

One of the biggest takeaways for us was that 1/3 of respondents in the study admit they do not know what security technologies need to play a role in OTT security.  This clearly suggests that there is a need for greater education on the implications of DRM in the OTT space – and underscores the need for sharing the results of this type of survey.

Check out the cool infographic that highlights some of the report’s findings.

Let us know if you feel OTT Video is a major game changer for TV.

 

OTT Video and Security Trends Infographic

 

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