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This report analyses how online video markets will develop, and the potential for online delivery services. It explores how: Online video is becoming mainstream ; Sustainable ad-funded and pay services are finding their way to the Open Internet ; Content delivery services play a key role in achieving QoS over the Internet ; The major players are positioning themselves in the B2C and B2B online.

Region: World, Europe 27, France, Germany, Italy, Spain, United Kingdom, Japan, United States

Table Of Contents

OTT Video Distribution - The rise of SVOD and CDN

Contents

1. Executive Summary ....8
1.1. The consumer online video market 9
1.2. The online video delivery services market... 11
1.3. Forecasts.. 12
2. Methodology..14
3. The consumer online video market..16
3.1. Key online video services. 16
3.1.1. Free short-clip services ...16
3.1.2. Streaming platforms and encrypted cloud ...17
3.1.3. Catch-up TV services ..18
3.1.4. Premium VOD packages.19
3.1.5. Subscription VOD (SVOD) packages ..19
3.1.6. Live streaming services...20
3.1.7. Personal cloud services for video21
3.2. Usage of online video... 21
3.2.1. Mainstream and increasing usage...22
3.2.2. Consumption behaviour...23
3.2.3. Usage by player...27
3.3. Revenue models of consumer online video services... 28
3.3.1. Advertising revenue models 28
3.3.2. Consumer payment for content ...31
3.3.3. The freemium model32
3.3.4. Bundling content with other services ...33
3.4. Key players on the consumer online video market .. 34
3.4.1. Overview of case studies.34
3.4.2. YouTube..34
3.4.3. Dailymotion..35
3.4.4. Facebook.36
3.4.5. BBC - iPlayer...37
3.4.6. Hulu.39
3.4.7. ABC - ABC Player...40
3.4.8. Apple - iTunes .40
3.4.9. HBO - HBO Go...41
3.4.10. Netflix ..42
3.4.11. Amazon ...44
3.4.12. Dropbox...45
3.4.13. MLB.46
3.4.14. PureVid47
3.4.15. Mega ...48
3.5. Size of the consumer online video market... 50
4. The value chain .51
4.1. General value chain . 51
4.2. Content creation... 52
4.2.1. Encoding rate ..52
4.2.2. Resolution53
4.2.3. Codecs and containers54
4.3. Content management... 55
4.3.1. Platforms and formats .55
4.3.2. Protocols: towards HTTP.56
4.3.3. Adaptive streaming is gaining traction.58
4.3.4. Content protection: Digital Right Lockers 62
4.3.5. Towards cloud-based video delivery ...65
4.4. Delivery/distribution.. 67
4.4.1. Unicast architectures (client-server)67
4.4.2. Key players..72
4.4.3. Emerging concepts/technologies.78
4.4.4. Telcos moves on the CDN market...80
4.5. Consumption 84
4.5.1. Analytical tools.84
4.5.2. ‘Big Data' and associated tools85
4.6. Costs and impacts for distribution 89
4.6.1. Criteria for distribution .89
4.6.2. CDN.96
4.6.3. Multi-CDN and related tools.96
4.6.4. Telco CDN...97
4.6.5. Auto-distribution...98
4.6.6. Summary: Segmentation of approaches, based on size and QoS requirements100
4.7. Size of the online video delivery services market .. 101
5. Forecasts.102
5.1. Key trends/drivers for online video and for CDN 102
5.2. Market forecast... 105
5.2.1. Market forecast for the consumer online video market..105
5.2.2. Market forecast for the CDN industry 107
6. Market data and Forecasts.108
6.1. World.. 108
6.2. Europe 27... 108
6.3. France 108
6.4. Germany. 109
6.5. Italy. 109
6.6. Spain .. 109
6.7. UK... 109
6.8. Japan.. 109
6.9. USA 110

Tables

Table 1: Total online video market, 2012-2017.13
Table 2: Free short clip services...17
Table 3: Streaming platforms and encrypted cloud...17
Table 4: Catch-up TV services..18
Table 5: Premium VOD packages 19
Table 6: SVOD packages 20
Table 7: Live streaming services ..20
Table 8: Personal cloud services for video ...21
Table 9: Top 10 US Online Video Websites .27
Table 10: Top 10 French Online Video Websites ...27
Table 11: Sample of pre-roll CPMs on TV online services, with comparison 2011-201330
Table 12: Content acquisition by type of video service...32
Table 13: Examples of ‘freemium' video services...33
Table 14: Breakdown of BBC spend in 2012..38
Table 15: World consumer online market, 2012 .50
Table 16: Different types of codec by type of video container 54
Table 17: Video delivery protocols and features.57
Table 18: HTTP and RTSP Features..57
Table 19: Popular coders and specific features..57
Table 20: ABR features ..59
Table 21: Major player initiatives in ABR streaming59
Table 22: Summary of ABR streaming technologies ..61
Table 23: Positioning of various traditional CDN around telco CDN...73
Table 24: Main European CDN players ..77
Table 25: Streamzilla rates.78
Table 26: Telco CDN initiatives...81
Table 27: Global CDN costs delivery, Q1 2012 ..90
Table 28: Storage strategies...91
Table 29: Amazon S3 (storage service) pricing..92
Table 30: Typical costs for transcoding ..93
Table 31: Client-side statistics features ..96
Table 32: Various distribution choices for content providers.100
Table 33: Different typologies for video distribution..101
Table 34: Advertising online video market, 2012-2017.106
Table 35: Pay-online video market, 2012-2017106
Table 36: Total online video market, 2012-2017...106
Table 37: World Total OTT revenues108
Table 38: World Total CDN market...108
Table 39: Europe 27 Total OTT revenues 108
Table 40: France Total OTT revenues..108
Table 41: Germany Total OTT revenues ..109
Table 42: Italy Total OTT revenues ..109
Table 43: Spain Total OTT revenues109
Table 44: UK Total OTT revenues109
Table 45: Japan Total OTT revenues ...109
Table 46: USA Total OTT revenues..110

Figures

Figure 1: World online video market, 2012-2017 .9
Figure 2: Trends in unique viewers and videos viewed, 2008 to 2012 in EU3 (UK, France and
Germany)22
Figure 3: Monthly time spent in hours, per user for each activity and medium ..23
Figure 4: Consumption of video breakdown by age group, and growth between 2008 and 2011..23
Figure 5: Time watched by video length 24
Figure 6: Proportion of people who watch each type of OTT video on each device ..24
Figure 7: Catch-up TV penetration rate in France, by time of day .25
Figure 8: Global online video penetration rate, by time of day, 2009-201125
Figure 9: Frequency of watching video content over the Internet on each device .26
Figure 10: Frustrations and concerns with watching OTT video content..26
Figure 11: Share of Web users who watch online videos on a specific platform..28
Figure 12: Overlay on YouTube...29
Figure 13: Ticker ad on YouTube.29
Figure 14: Adidas-branded player skin on Hulu...29
Figure 15: YouTube homepage ...35
Figure 16: Dailymotion homepage...36
Figure 17: Facebook video page..37
Figure 18: BBC iPlayer homepage...38
Figure 19: Hulu homepage ..39
Figure 20: iTunes Store ...41
Figure 21: HBO Go portal42
Figure 22: Netflix homepage...43
Figure 23: Amazon Prime now includes Instant Video access.44
Figure 24: Dropbox personal cloud accessed from the Internet...45
Figure 25: MLB.tv player and main features 46
Figure 26: Purevid portal..47
Figure 27: Generation of the link to share a file, with the key integrated to the URL ...48
Figure 28: Account's session history with the detail of IP addresses that log in the account...48
Figure 29: File sharing with encrypted cloud storage ecosystem.49
Figure 30: Breakdown of OTT video services in selected countries, 2012...50
Figure 31: Technical value chain .51
Figure 32: HEVC specifications and impacts...52
Figure 33: Key factors for development...53
Figure 34: The 4K concept...53
Figure 35: Component of a DASH profile.54
Figure 36: How video download, progressive download and streaming work..56
Figure 37: Matching bandwidth changes to maintain QoS...58
Figure 38: IIS Smooth Streaming.60
Figure 39: HTTP Dynamic streaming workflow61
Figure 40: Operating principle..62
Figure 41: Operating principle of Ultraviolet.63
Figure 42: Main interests of CFF..64
Figure 43: Cross-playback of CFF...65
Figure 44: Converged head-end and cloud delivery 66
Figure 45: Envivio strategy ..66
Figure 46: Unicast and multicast..67
Figure 47: Illustration of CDN principles...69
Figure 48: Video delivery based on P2P architecture..70
Figure 49: Akamai mobile solution for iPhone..72
Figure 50: Financial elements of Akamai.74
Figure 51: Types of applications targeted by Ericsson-Akamai partnership.75
Figure 52: Outline of Ericsson-Akamai partnership..75
Figure 53: Akamai perspective on mobile: extend its presence to foot of tower ..76
Figure 54: Growth in Limelight Networks revenue and net profit, in thousands USD...76
Figure 55: Share of value-added services in Limelight revenue ..77
Figure 56: Jet-Stream Streamzilla CDN network .78
Figure 57: Illustration of performance of various CDNs on Deutsche Telekom network ..79
Figure 58: Principle of transparent caching: interception and redirection to cache if content is
‘cacheable'..80
Figure 59: BT wholesale CDN in the UK..81
Figure 60: ATandT CDN strategy83
Figure 61: Rationale of CDN federation, 2010.84
Figure 62: Different tools..84
Figure 63: Various kinds of data sources.86
Figure 64: Targeted advertisement on YouTube .87
Figure 65: Personal recommendations on Netflix 88
Figure 66: List of targeted advertising and recommendation service providers (non-exhaustive)88
Figure 67: Example of 95th percentile calculation.89
Figure 68: Client-server relationship in four-layer model..94
Figure 69: QoS satisfaction..95
Figure 70: Conviva analysis solution illustration ..97
Figure 71: Distribution of costs for various Netflix CDN uses, before (left) and after (right)
introducing Open Connect..99
Figure 72: Netflix CDN peering points100
Figure 73: World online video market, 2012-2017 .107
Figure 74: CDN market, 2012-2017...107OTT Video Distribution: the rise of SVOD and CDN

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