A Smarter Way To Stream: Optimizing Your Technological Infrastructure

OTT video streaming has experienced significant growth and transformation over the past decade, driven by advances in technology, changing consumer preferences, and the proliferation of high-speed internet across most corners of the world. By the end of 2024, it is estimated that the global OTT market will be worth over $315 billion and some sources claim that as much as 45% of global internet users will regularly be consuming content on video streaming services. Driven by major players such as Netflix, Amazon Prime Video, and Disney+, as well as newer entrants like HBO Max and Apple TV, an increasing number of streaming services are working to expand their content libraries and geographical reach in an attempt to capture a growing audience that is hungry for diverse and high-quality content. However, this rapid expansion has also brought about several challenges that have reshaped the competitive landscape of the OTT video streaming market.

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Technological advancements: a blessing and a curse

Technological advancements, while a driver of growth, also contribute to the obstacles faced by many OTT service providers. For example, the rise of high-definition and ultra-high-definition streaming requires significant bandwidth, compelling many companies to invest in advanced compression technologies and edge computing solutions to ensure smooth and high-quality viewing experiences. Similarly, fluctuations in user demand, such as during popular live events or new content releases, require a robust infrastructure that can scale quickly without compromising performance - even in regions with less reliable connectivity.  

Additionally, the integration of features powered by 5G connectivity, AI, and Extended Reality (XR) has become increasingly important in order to stay competitive in a crowded market. Keeping up with emerging technologies is a continuous challenge that requires substantial investment in both technology infrastructure and talent. Innovation with a focus on emerging technologies can be expensive and requires significant focus. Making it a priority can be a challenge.

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Making the right technology choices for your service

Investing in a robust yet agile and scalable technological infrastructure is essential for delivering a high quality streaming experience. However most OTT providers have already made technology choices that they either do not or cannot immediately abandon. Faced with high inflation, rising interest rates and macroeconomic uncertainties, companies are looking to streamline their tech stacks, cut costs and optimize their business operations. Investment in technology will need a strong business case that speaks to a path to profitability.

While the right tools and a streamlined tech stack are essential, they alone may not guarantee business growth for a video service provider. It is the right technology solution being implemented the right way that will drive business trajectory. Here are some baseline recommendations for how to get started on that path.

1. Support high traffic volumes and deliver content in high-definition formats without buffering or interruptions. 

Adopting edge computing solutions can reduce latency and enhance the quality of service, especially in regions with limited internet bandwidth. One option can be to implement ABR in a bid to optimize streaming quality based on real-time network conditions, but this requires sophisticated algorithms and real-time data processing. Additionally, employing advanced video compression technologies can minimize data usage while maintaining video quality, making streaming more accessible to users with varying internet speeds. All these factors are crucial for providing a high quality user experience as well as for making sure that you are getting the most out of your tech stack.

2. Maintain seamless interoperability with third-party providers while staying on top of platform and device updates.

Most OTT platforms will have to integrate with third-party services, e.g. authentication, payments, and advertising. Interoperability between these different vendors and APIs can be complex, with frequent updates or changes coming from each third-party provider. The same goes for staying on top of the latest platform and device updates - a time-consuming task that can significantly impact both operational efficiency and service quality. Doing it well requires regular testing, proactive certification management, user feedback integration and a solid app configuration system. Implementing these things can be complex and costly but in most cases, you can’t afford not to.

3. Leverage the cloud to reduce complexity and total cost of ownership.

Public cloud providers have significantly reduced the complexity of creating and maintaining a high quality video streaming experience. You no longer have to build your technology stack from scratch. These framework based solutions offer scalable, secure, and reliable infrastructures that support the needs of almost every modern streaming platform without the investment in time, resources, and expertise traditionally required. By working with the cloud, you can focus your efforts on differentiating your brand and content library, rather than getting bogged down by the intricacies of backend development.

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A smarter way to stream

The video streaming market stands at a pivotal crossroads. Recent challenges have spurred an industry wide shift from “growth at any cost” to a model focused on sustainable, profitable expansion. Partnering with a Managed Services business partner provides access to specialized expertise, advanced technologies, and extensive partner networks, helping streaming services optimize and evolve their tech stack without the need for significant internal investment. A Managed Service partner will not only help you streamline operations and reduce total cost of ownership (TCO), but also accelerate the implementation of new features and technologies that will help you stay competitive in a crowded market.

Accedo will be at IBC in Amsterdam on September 13-16. Please come visit us at booth 5.D68 or book a meeting with our team to learn more about how we can help you make smarter technology choices. 

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