6 OTT Challenges & Pitfalls – How To Avoid Them

6 OTT Challenges & Pitfalls – How To Avoid Them

by | Dec 4, 2024 | News, SSAI

OTT platforms come with their share of disadvantages, and there are several challenges that OTT businesses may face. These are the six key OTT challenges you must address to ensure success in the ever-evolving landscape. Let’s dive right in!

About OTT

Launching an OTT service has never been easier. Despite the strong demand for content, accelerated by the pandemic, technology has advanced, embracing cloud solutions and incorporating live streams, including sports and other live events. With the advent of ultra-fast broadband and the expansion of 5G networks, it’s now possible to deliver the high-quality, low-latency streaming video that consumers crave.

However, it’s essential to recognize that, despite the success of giants like Netflix and Disney+, the OTT industry is not immune to failure. Even these global leaders have encountered challenges and growth slowdowns over the past year.

OTT platforms have their downsides, with various potential pitfalls, some more evident than others. This guide aims to help you start your OTT business and provides insights into avoiding the common stumbling blocks.

6 OTT Challenges

Some of the following may seem obvious, but the growing list of failed OTT companies suggests that not all these issues were carefully thought out.

1. Not understanding your audience

OTT not understand your audience

Understanding your audience and their content preferences is crucial when launching an OTT platform. This is especially important for niche channels, as they can make two common mistakes: either targeting an overly narrow niche or entering a crowded niche space.

Audience attention is becoming increasingly divided. Recent data from the US market shows that the average number of individual TV services used by consumers has risen to 11.6 video services per household. This figure encompasses traditional Pay-TV, all available streaming services, and over-the-air reception via antennas. Notably, this number is on the rise, with 8.9 video services per household in 2022.

This trend is primarily driven by younger viewers, with Millennials averaging 16.3 video sources, Generation Z at 12.7 sources, and Generation X at 12.2 sources.

With a limited pool of viewers and a finite amount of time for content consumption, the competition is fierce. In the past, certain OTT services have failed due to missteps in targeting their audience. For instance, Fandor and FilmStruck aimed at the already crowded cinephile market, and both struggled. Highly specialized services like Hortus TV, catering to gardeners, and XtraFrame, offering live access to bowling events, also failed to gain traction.

Recent notable casualties include Hooq in Asia, Quibi, and TVision in the US. Other closures involved Acorn TV in South Africa, live music specialists Mandolin and Sessions, GolfTV, and more.

The key lesson here is to thoroughly research and understand your target audience. Some ideas might be better suited as YouTube channels initially, as the monetization opportunities there can be more accessible, despite YouTube’s own set of challenges.

Read more: OTT App – New Era Of Modern Television In 2025

2. Using the wrong technology 

Today, there’s a clear distinction between the right and wrong approaches when it comes to technology, especially in the TV industry. The right way involves harnessing the capabilities of the cloud. Over seven years ago, Netflix’s CEO, Reed Hastings, demonstrated the immense power of the cloud when he expanded the streaming service to 130 new countries with the press of a button during a presentation at CES. Today, Netflix operates in 190 countries worldwide.

VR CDN

In essence, the cloud offers the ability to rapidly and efficiently scale operations without the massive upfront costs associated with on-premises equipment. This scalability and cost-effectiveness make the cloud the most rational and viable choice for any business plan, whether you’re running an OTT platform or any other service in today’s digital landscape.

3. Showing the wrong content 

OTT challenges

Two critical elements for the success of your content delivery are understanding your audience’s preferences and leveraging TV business analytics. Big Data, now commonly referred to as ‘analytics,’ provides invaluable insights into the performance of your content library. It helps identify what content is resonating with your audience and what is not. This data-driven approach is essential for optimizing your content library, removing content that isn’t performing, and retaining content that continues to attract viewers over time.

Content is often a significant expense, particularly in emerging markets like OTT sports. Therefore, every minute and every gigabyte of your content should serve a purpose and deliver value. Additionally, safeguarding your content is crucial. New forms of video piracy, illegal apps, IPTV, and streaming are on the rise. To protect your investment, a comprehensive anti-piracy strategy is essential.

4. Offering a poor user experience

wrong content ott challenges

When launching a new OTT service, operators often find themselves competing with established global SVOD (Subscription Video on Demand) giants like Netflix, Disney+, and Amazon Prime Video. These industry leaders have meticulously crafted user experiences that efficiently connect customers with content. They employ personal recommendations, outstanding user interface design, and provide seamless support across various platforms.

The good news is that you don’t need to invest the same level of research and development (R&D) budget to create a similar experience. Ready-made solutions are available off the shelf, such as the one we offer. However, the challenge is that your customers will expect a similar level of quality and convenience.

This customer-centric approach extends throughout your organization, including customer service. User experience is not limited to the interaction with a screen but encompasses all interactions with your company, whether it’s an email to technical support, an account inquiry, a request on social media, or any other form of contact.

Additionally, there are certain barriers to entry that must be addressed. Making it easy for people to sign up is crucial. Long contracts, hefty fees, and limited payment options can deter potential subscribers and hinder your ability to thrive in the market.

5. Catching a bad wave

Navigating the OTT (Over-The-Top) market is akin to surfing in the ocean—waves constantly ebb and flow, and not every wave carries you smoothly to your destination. The industry is in a state of perpetual change.

For instance, when this piece was originally written in May 2019, Transactional VOD (TVOD) was seen as the next significant trend in the industry. However, the subscription model consistently outperformed it. In 2021, the impact of the COVID-19 pandemic reshaped the landscape, with TVOD becoming a potent tool for Hollywood film studios trying to recover revenue during cinema closures.

Today, we can confidently discuss the rise of AVOD (Ad-Supported Video on Demand) and FAST (Free Ad-Supported Streaming TV) services. Many operators are now adopting a tiered approach, offering everything from ad-supported and free content to premium SVOD (Subscription Video on Demand) and multiple levels in between.

The dynamic nature of the industry is illustrated by the evolving trends. Services targeting the 3D and VR markets have faltered, while those exploring esports have experienced rapid growth. Predicting the future of the OTT market is akin to playing the stock market—potentially rewarding, but fraught with risks and uncertainties.

Read more: Is Your Current OTT Partner Causing You to Lose Revenue?

6. Managing expectations 

This is an internal problem, but no less of an issue because of that. Because some companies have made successful investments in OTT operations, it doesn’t necessarily follow that all will. Nor, indeed, that a company will be as successful and show returns as quickly as its investors want. Netflix is just one company whose share price is still incredibly exposed to shifts in subscriber numbers growth, with any quarter that underperforms compared to analysts’ expectations seeing it punished in the market.

The long and the short of it is that companies can achieve success in subscriber numbers and even turn a profit but still be killed off because the internal expectation was set so much higher. 

Solving the common OTT challenges

The potential offered by OTT solutions is immense, but it’s also an increasingly competitive marketplace where companies must establish the essential foundations before launching their services. Some solutions are technical in nature, such as leveraging the power of the cloud and utilizing data analytics. Others revolve around sound business practices that are relevant to any industry.

OTT is not a guaranteed path to instant riches. While there is money to be made and audiences to be reached, success requires more than just introducing a product and expecting profits and viewers to pour in. A solid plan is essential, involving the delivery of compelling content at the right price, and then giving the product time to grow and scale. Even after an initial burst of success, the period leading to sustained, long-term growth can be a nervous one for all involved, and ongoing diligence is required.

Conclusion

OTT television services provide many functions and benefits for both consumers and businesses in the current digital era. As a leading provider of OTT app and service in Vietnam, Thu Do Multimedia is confident in our ability to provide the most modern and advanced online services to consumers.

Book meeting with us: Meeting with Global Sale

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4 New Trends In Digital Television Industry That You Can’t Miss

4 New Trends In Digital Television Industry That You Can’t Miss

by | Oct 29, 2024 | OTT, DRM, News, Sigma DRM, SSAI

The digital television industry is growing and changing rapidly. If you are interested in the growth of digital television, let’s explore 4 new development trends in the global digital television industry with Thu Do Multimedia!

The Importance of Digital Television in the Age of Technology

Digital television is playing an increasingly important role in the context of rapidly developing technology, especially in the digital era. The transition from analog television to digital television not only brings many technical benefits but also changes the way television content is produced, distributed and consumed.

High resolution, sharp images and vivid sound have enhanced the viewer experience, especially with content such as sports, movies and entertainment programs. This meets the increasing demand of consumers for quality and diversity in entertainment content.

Definition and Benefits of Digital Television

Digital Television (DTV) uses digital signals to transmit and receive images and sound, providing higher quality than analog television.

It allows for the transmission of multiple channels in the same frequency band, saving spectrum space and providing new services such as multiplexing, electronic program guides (EPGs), and additional languages.

Multi-Platform Television Trends

The development of technology has promoted the multi-platform television model, allowing content to be accessed through many different devices such as mobile phones, tablets, and smart TVs. This model not only helps viewers watch content on demand but also creates opportunities for content producers to interact with viewers more effectively.

Convenience: Viewers can watch their favorite shows anytime and anywhere.


Interaction: Platforms like Facebook and YouTube allow audiences to interact directly with content, helping to build a loyal audience.

Digital Television Trends that have been growing in recent years and will continue to “break the ice” in the near future

1. Growth of OTT Television

    The over-the-top market size is estimated to reach USD 0.58 trillion in 2024 and is expected to reach USD 1.99 trillion by 2029, growing at a CAGR of 28.19% during the forecast period (2024-2029).

    Over-the-top OTT Market Analysis

    Over the top (OTT) is a film and television content platform that is delivered over a high-speed internet connection instead of a cable or satellite provider-based platform.

    The adoption of OTT has significantly supported the video, music, podcast and audio streaming categories. The increased adoption can be attributed to its narrow genre selection, packaging flexibility, wider device availability, internet penetration and lower costs.

    Growth of OTT Television
    OTT software growing at a CAGR of 28.19% during the forecast period (2024-2029)

    Mordor Intelligence report, The constant shift towards commoditization of sports and entertainment services, along with competition from OTT providers, is expected to drive the OTT industry forward. Traditionally, sports and entertainment channels have been subscribed to cable and satellite TV. However, the development of OTT platforms is disrupting this model by providing a variety of sporting events, live broadcasts, and entertainment content directly to consumers.

    The growth of smart devices and the development of the internet are the main factors driving the growth of OTT platforms. The penetration of smartphones, tablets, and smart TVs has brought more avenues to access OTT. These devices connect to the internet, allowing customers to watch their favorite movies and music easily.

    Moreover, the availability of high-speed internet connections along with 4G/5G broadband mobile networks provide a smooth experience for customers when accessing OTT platforms.

    The combination of smart devices and high-speed internet also helps increase convenience and personalization for users. OTT platforms will recommend and analyze user data to make suggestions about different movie playlists, singers, trends, etc. for each person.

    These factors have promoted the development of OTT, attracting many subscribers and boosting revenue from subscription fees and advertising. Therefore, television companies and television stations have realized the importance of OTT and launched their own streaming services or cooperated with existing OTT platforms to develop in this open industry.

    Along with development, there are always problems to solve

    Online video piracy is an important issue affecting the OTT market. Piracy is the theft of digital content and its illegal distribution and consumption on the internet. This problem directly affects the revenue of production enterprises and official distributors. The revenue loss is huge. It undermines the business models of OTT providers, who rely on subscription fees or advertising revenue to stay in business.

    2. Real-Time Interaction Trends in Digital Television

    In digital television, real-time interactivity is becoming an important trend. Modern platforms allow audiences to directly participate in the program through activities such as voting, discussion and sharing opinions on social media channels or related applications.

    Real Time Interaction Trends
    Real-time interactivity is becoming an important trend

    For example, reality TV shows such as “The Voice” or major sporting events often integrate online voting features, allowing viewers to participate in deciding the results or interact with the host.

    The impact of this trend on the viewer experience is very positive, as it creates a sense of connection and direct participation in the content they are watching. Interactivity helps make TV content more engaging, while also providing a sense of intimacy and personalization, making the audience feel like they are part of the program, rather than just passive observers.

    Specific Figures on the Increase in Viewership in Interactive Television Programs

    Audience Growth

    The programs “Happy Lunch” on VTV6 and “Healthy Living Every Day” on VTV2 have recorded a significant increase in the number of viewers participating in interactions, showing the appeal of these programs to the public.

    Popular interactive features

    Features such as Time Shift and content storage allow viewers to not miss their favorite programs, thereby increasing audience participation. For example, Viettel TV service allows users to store content for 7 days and rewind 2 hours before.

    Audience participation increases

    Globally, many TV channels such as BBC, CNN, and NBC have also applied the interactive TV model through mobile applications and online platforms, allowing viewers to participate in polls, votes, and discussions on hot issues.

    Demand for high quality

    Today’s audiences not only want to watch but also want to interact with content. This leads to producers having to invest in richer and more diverse content to meet this demand.

    In short, the increase in viewers of interactive TV programs not only reflects changes in content consumption habits but also shows that audiences increasingly want to participate and influence the content they watch. The above statistics prove that interactive TV is becoming an important trend in the modern media industry.

    OTT Applications Integrating with SmartTVs to Increase Interaction

    In the context of increasingly developing digital TV, many OTT (Over-The-Top) applications have been integrated into SmartTVs to enhance user experience and increase high interactivity.

    1. VTV Plus
      This application allows users to connect to the Internet to watch a variety of high-quality copyrighted TV content. VTV Plus supports multi-screen interaction, allowing viewers to participate in activities such as voting and sending feedback directly during programs.
    2. FPT Play
      FPT Play not only provides live TV channels but also allows users to review broadcast programs. The application integrates many interactive features, including commenting and sharing content on social networks.
    3. Netflix
      Although primarily a video-on-demand service, Netflix also offers interactive programs such as “Bandersnatch”, where viewers can choose the direction of the story. This creates a unique and personalized experience for the audience.
    4. YouTube
      The platform allows users to watch videos and participate in livestreams with the ability to comment directly. YouTube also integrates the Super Chat feature, allowing viewers to send paid messages during live broadcasts.

    The real-time interaction in digital television feature has been widely applied in domestic and foreign television platforms. However, in the future, this feature will be further upgraded, bringing a more “classy” interaction to viewers.

    3. Blockchain Technology in Digital Television Copyright Protection

    Along with the development of the OTT platform is the increasing problem of copyright infringement. Therefore, DRM service providers always enhance the strongest copyright protection feature for producers.

    Blockchain Technology in Digital Television Copyright Protection
    Blockchain is expected to increase to 163.83 billion USD in 2029

    New discovery, Blockchain technology has emerged as an effective solution to protect content copyright in the digital television field.

    According to a report by Grand View Research, the global blockchain market reached 5.92 billion USD in 2021 and is expected to increase to 163.83 billion USD in 2029. This growth reflects the potential for widespread application of blockchain technology in many fields, including television.

    Mr. Han said: “If you don’t know about the Internet, you are standing outside the current situation. However, in about 10 years, if you don’t know about blockchain, we will be like people who have not used the Internet for the past 20 years”.

    How Blockchain Can Prevent Digital TV Piracy

    Content Authentication and Protection

    Blockchain allows for the recording of information about the author, creation date, publication date, and ownership of digital television content. This helps authenticate the integrity of the content and prevent unauthorized changes after broadcasting, thereby protecting the rights of producers and authors.

    Ownership Management

    With blockchain, managers can easily manage intellectual property rights on a distributed database. Allowing for secure, transparent storage and limiting copyright disputes.

    Creating NFTs for Exclusive Content

    Blockchain technology also allows for the creation of non-fungible tokens (NFTs) to represent television works. Each NFT will ensure the uniqueness of the work, helping to protect intellectual property rights and prevent unauthorized copying. Producers can issue NFTs as “tickets” for online events or exclusive content, creating a new business model.

    Blockchain technology offers many benefits in protecting digital television copyright, from content authentication to ownership management and transaction automation. With the continuous development of this technology, it promises to become an important tool in protecting intellectual property in the television industry in the future.

    Read more: Thu Do Multimedia speaks about Blockchain technology

    4. Personalizing Customer Experience on Digital Television Platforms

    Artificial intelligence (AI) technology is increasingly being chosen and widely applied in digital television. Bringing many benefits, performance and breakthrough new features in the future.

    Inevitable trend

    According to Master Nguyen Truong Giang, Director of the Television Technical Center, the application of AI in digital television is not only feasible but also an inevitable trend. AI can be applied in all stages from content ideation to program production techniques.

    Improving content quality – Automation

    AI helps automate many tasks in content production, such as converting speech to text, automatically creating metadata, and analyzing big data. This not only saves time but also improves accuracy in the production process.

    Analyzing user data – Audience and content
    AI supports the collection and analysis of user behavior data on platforms such as VTVGo and VTV.vn. This helps producers better understand audience preferences, thereby developing more appropriate and effective content.

    Creating virtual MCs

    image 18

    Vietnam Television has applied AI to create virtual MCs, simulating the intonation, voice and expression of real editors. This helps save time and costs in program production.

    Many major TV stations in the world such as in the US, India, and Korea have started using AI MCs for their programs since 2022, showing the popularity of this technology globally.


    The application of AI in television is expected to continue to grow strongly in the coming years, with the ability to improve user experience and increase production efficiency.

    Leading the digital television trend – Thu Do Multimedia

    The above 4 future development trends of the digital television industry are trends that have been and are being strongly applied in 2024, but are still predicted to continue to grow and make further breakthroughs in the future 2025 – 2029.

    Foreseeing these trends, Thu Do Multimedia has pioneered in technology and led the trend to have smart solutions to support digital content production businesses to develop strongly when applied to businesses and organizations.

    Comprehensive OTT solution for digital television

    We provide television producers and publishers with a comprehensive OTT solution, allowing businesses to not spend a lot of time searching for different technologies from many suppliers. Key elements of Thu Do Multimedia’s OTT solution include:

    Multi-platform content distribution: Sigma OTT allows streaming on multiple devices such as phones, tablets, smart TVs, making it easy for producers to reach all audiences

    High security with Sigma DRM: Digital rights management (DRM) technology helps protect content from copyright infringement while keeping content quality unaffected during broadcast. This is especially important for content providers with strict security requirements.

    Dynamic ad insertion (DAI): Sigma OTT supports inserting ads based on users or the content they are viewing, effectively generating ad revenue without interrupting the user experience.

    User interaction with Sigma Interactive: helps enhance the user experience by creating direct interactions during broadcast, thereby creating a sense of participation and increasing engagement with content.

    Optimize delivery with Sigma Multi CDN: This solution optimizes content delivery across multiple CDN networks, ensuring content is delivered in the highest quality even under unstable network conditions.

    Thanks to these solutions, Thu Do Multimedia not only provides an efficient streaming platform but also helps content and television producers optimize costs, enhance user experience, and comprehensively protect content copyright.

    Details about Sigma DRM applying Blockchain in the digital television industry

    According to Mr. Han – CEO of Thu Do Multimedia, by combining Sigma DRM to protect copyright and blockchain – helping to instantly record the remuneration of parties involved in creating works, it will help solve the painful problem of copyright infringement and transparency of remuneration in the online environment.

    image 19
    Mr.Han told about Blockchain trends in digital television

    Copyright infringement in the digital environment (digital television) often occurs because these are intangible goods that are characterized by being cross-border and easy to share. Therefore, it is very easy to create a copy with unchanged content quality through peer-to-peer sharing with zero marginal cost.

    “Content creators and publishers have almost no control over how their products are shared online,” said Mr. Han.

    According to the CEO of Thu Do Multimedia, with the application of blockchain, each time digital content is shared, it will be recorded by the system. The use of content is done by smart contracts with a certain network fee, so the marginal cost will increase.

    Blockchain technology will not only be applied to copyright protection of television but also music content, electronic publications or more broadly, all industries related to creativity.

    Digital content copyright protection: Sigma DRM is designed to protect copyright for television services and digital content. This solution has been certified to meet international security standards of Cartesian and is applied to many television services in Vietnam such as VTVcab On, TV360, Gojapan, and Nexta.


    Violation Detection: Sigma DRM uses AI technology to detect and warn of device tampering or security vulnerability exploitation within 1/1000 of a second, helping to protect content quickly and effectively

    “Blockchain can also create new business models by allowing users to transfer or charge for copyrighted content they own after using it. This is completely possible when Thu Do Multimedia’s Sigma DRM digital content copyright protection solution is integrated with blockchain technology,” said Mr. Han.

    Previously, Thu Do Multimedia has also successfully applied blockchain to Fado Go – an e-commerce platform co-founded by this company. In the case of Fado.vn, blockchain is applied to accumulate points (Loyalty Points) for customers and record the frequency of using the utilities to buy and transport goods from Fado. Customers will have complete peace of mind, because Blockchain will help prevent anyone from illegally using their reward points other than them.

    Multi-dimensional – multi-platform interaction with Sigma Interactive

    Sigma Interactive, part of the OTT solution ecosystem of Thu Do Multimedia, is a powerful tool that helps enhance multi-dimensional and multi-platform interaction between content producers and audiences. This solution not only enhances user experience but also expands the accessibility of digital content on different devices.

    This is a new trend in digital television, we have a prominent feature compared to competitors which is a diverse interaction model. Regardless of what content producer or publisher you are, we can easily meet this feature for your business. Whether it is sports, movies, online learning, etc., Sigma Interactive can be easily integrated into the system.

    Thu Do Multimedia’s experts have extensive experience in developing interactive applications, helping to ensure product quality and their popularity with end users.

    Conclusion:

    The digital television industry is changing dramatically thanks to four leading trends: OTT, Blockchain, interactive television, and artificial intelligence (AI). The application of these technologies not only helps businesses optimize user experience but also enhances security, personalizes content, and develops more effective advertising methods.

    Thu Do Multimedia, with a comprehensive OTT solution set such as Sigma DRM and Sigma Interactive, is a reputable partner supporting businesses in the digital television industry to constantly innovate and develop. By combining these advanced solutions, businesses will be able to meet market needs and expand their reach in the future.

    Contact us today to get your questions answered.

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    Revolutionizing the Future of Advertising: AI-Powered

    Revolutionizing the Future of Advertising: AI-Powered

    by | Oct 25, 2023 | News, SSAI

    A renaissance is currently unfolding in the realm of targeted advertising. Historically, in the context of video advertising, targeting was confined to a viewer’s geographical location, largely due to the distribution of ads through multicast, which sent the same video stream to numerous viewers. However, with the advent of unicast delivery (i.e., one-to-one video stream delivery) and recent advancements in AI, it is now possible to deliver individually tailored ads to a broad audience. These rapid technological developments in targeted advertising are empowering video service providers to redefine viewer engagement and enhance their revenue. Let’s delve deeper into this transformative landscape.

    Enhancing Revenue and Viewer Engagement through Targeted Advertising

    Targeted advertising presents a substantial opportunity for video service providers to elevate viewer engagement and unlock fresh revenue streams. As ads become more finely tuned, the advertising inventory gains substantial value. Traditional CPM rates for legacy TV inventory have historically hovered around $15. However, with individually addressable TV ads, even low-value inventory can command a CPM of $20, while high-value content, such as live sports, can fetch rates of up to $50.

    The predictive capabilities of AI technology play a pivotal role in allowing advertisers to deliver precisely tailored messages to specific demographics. The more relevant an ad is to its audience, the more impactful it becomes, resulting in higher engagement rates and improved return on investment (ROI).

    AI-driven targeted advertising also equips video service providers with granular tracking, providing insights into who is actually viewing the ads, how long they are engaged, whether they are muting the TV, and more. This data is immensely valuable to advertisers, instilling confidence that investing in individually addressable ads is a wise decision.

    Crucial Components of a Targeted Advertising Solution

    Screenshot 7 2

    Several key features are essential for a targeted advertising solution sought by video service providers. The deployment of server-side ad insertion (SSAI) technology enables advertisers to seamlessly inject personalized ads into the video stream. With SSAI, video content and ads are seamlessly integrated into one stream, making ad blocking impossible. This entire process ensures a consistent viewing experience. Dynamic ad insertion (DAI) is also imperative, allowing ads to be tailored to each viewer using AI technologies, thereby optimizing ROI. Offering customized content to each viewer is pivotal in providing a unique service and attracting subscribers.

    Furthermore, the targeted advertising solution must be scalable to ensure an uninterrupted viewing experience for millions of concurrent viewers, a critical consideration during premiere sports events.

    Next-Generation Advancements in Targeted Advertising

    Recent technological enhancements are rapidly advancing the field of targeted advertising. One of the latest innovations is dynamic brand insertion, which leverages AI algorithms to seamlessly integrate branded content into video. For instance, this could involve placing a popular soft drink’s logo on an in-scene beverage cooler. With dynamic brand insertion, advertising becomes seamlessly embedded in the video scene, creating a non-intrusive and engaging advertising experience and eliminating the need for commercial breaks. The ad blends harmoniously with the video content itself.

    Another recent advertising innovation in the video space is double-box displays, enabling viewers to simultaneously watch live shows or events while ads run on the screen. Apart from opening up new revenue avenues for video service providers, this type of advertising minimizes disruptions for viewers, enabling them to maintain their focus on the content and enhancing their overall satisfaction.

    Transforming Streaming Experiences with Targeted Advertising

    Propelled by technological advancements, including AI, targeted advertising is evolving at a remarkable pace. By embracing the latest innovations in targeted advertising, video service providers can drive viewer engagement and enhance profitability. However, they require a scalable, user-friendly targeted advertising solution that guarantees a seamless viewing experience. Solutions like Harmonic’s VOS360 Ad are revolutionizing targeted advertising by providing video service providers with a single platform for AI-powered targeted advertising, delivering a seamless viewing experience, and optimizing monetization.

    Top 6 SSAI Service Providers: Strengths and Weaknesses

    Top 6 SSAI Service Providers: Strengths and Weaknesses

    by | Oct 25, 2023 | SSAI

    SSAI Service Providers play a pivotal role in enhancing viewer experiences and maximizing ad revenue, making the choice of the right provider essential.

    Server-Side Ad Insertion (SSAI) offers several significant advantages in the world of online video streaming. One of its primary benefits is the enhancement of viewer experiences by eliminating buffering delays and ensuring seamless ad insertion. SSAI also enables precise ad targeting, tailoring ads to individual viewer preferences, thus increasing engagement and ultimately boosting ad revenue. Today, we’ll delve deeper into the top 6 SSAI service providers and examine their respective strengths and weaknesses.

    1. Brightcove:

    Strengths:

    • High-Quality Video Delivery: Brightcove boasts a reputation for its high-quality video platform, ensuring that viewers enjoy uninterrupted streaming without buffering or lag.
    • Ad Revenue Optimization: Brightcove’s SSAI solutions are crafted to maximize ad revenue by seamlessly integrating ads into video streams.
    • Analytics and Reporting: The platform offers robust analytics and reporting tools, allowing content providers to gain valuable insights into ad performance and viewer behavior.

    Weaknesses:

    • Pricing: While Brightcove delivers a powerful platform, its premium quality comes with a price tag that might be prohibitive for smaller businesses with limited budgets.

    2. Conviva:

    Strengths:

    • Advanced Video Optimization: Conviva excels in optimizing the online video experience, ensuring smooth streaming, minimal buffering, and an overall superior viewer experience.
    • Comprehensive SSAI Solutions: Conviva provides end-to-end SSAI solutions, assisting users in effectively managing and monetizing their video content.
    • Viewer Insights: The platform offers in-depth insights into viewer behavior, enabling content providers to make data-driven decisions to improve content delivery and advertising strategies.

    Weaknesses:

    • Complexity: Some users might find Conviva’s offerings complex, especially those without prior technical expertise, which could pose challenges during setup and configuration.

    3. Akamai:

    Strengths:

    • Global CDN: Akamai is renowned for its extensive Content Delivery Network (CDN), ensuring fast and reliable content delivery on a global scale.
    • Reliability: Akamai’s SSAI solutions are robust and highly reliable, making it the preferred choice for large-scale streaming events where uptime is critical.
    • Security: Akamai offers advanced security features, safeguarding content against DDoS attacks and ensuring secure content delivery.

    Weaknesses:

    • Cost: While Akamai’s services are exceptional, they can be relatively expensive, making them more suitable for enterprises or organizations with substantial budgets.

    4. Kaltura:

    Strengths:

    • Customizable Platform: Kaltura’s video platform is highly customizable, allowing users to tailor it to their specific needs and branding requirements.
    • SSAI Integration: The platform seamlessly integrates SSAI, enhancing the viewer experience while effectively optimizing ad revenue.
    • Scalability: Kaltura caters to a wide range of businesses, from small enterprises to large corporations, offering scalability that suits various needs.

    Weaknesses:

    • Learning Curve: Setting up and customizing Kaltura’s platform may require a learning curve for some users, particularly those new to video technology.

    5. THEOplayer:

    Strengths:

    • Flexibility: THEOplayer stands out for its versatility as an HTML5 video player that can be seamlessly integrated into existing video applications.
    • SSAI Capabilities: THEOplayer offers SSAI integration, enabling users to efficiently manage and optimize their advertising strategies.
    • Viewer Experience: Designed with the viewer in mind, THEOplayer ensures a seamless and enjoyable viewing experience with features like adaptive streaming.

    Weaknesses:

    • Limited Ecosystem: Compared to some larger industry players, THEOplayer may have a more limited ecosystem of services and features.

    6. Sigma DAI

    Sigma DAI is a cutting-edge Server-Side Ad Insertion (SSAI) service proudly offered by Thudo Multimedia, one of the greatest SSAI Service Providers, designed to revolutionize your video streaming and advertising capabilities.

    Thudo MUltimedia-Sigma DAI
    Thudo Multimedia-Sigma DAI

    Strengths:

    • Seamless Ad Insertion: The ability of Sigma DAI to seamlessly insert ads into video streams without causing buffering or disruptions is paramount. Thudo Multimedia ensures a smooth and uninterrupted viewer experience by effectively integrating ads into the content.
    • Ad Personalization and Targeting: Effective Sigma DAI should enable personalized ad targeting based on viewer data and preferences. Thudo Multimedia offer advanced audience segmentation and targeting capabilities to maximize ad relevance and engagement, ultimately boosting ad revenue.
    • Analytics and Reporting: Thudo Multimedia should provide a robust suite of analytics and reporting tools. This includes detailed insights into ad performance, viewer behavior, and engagement metrics. Access to actionable data allows content providers to fine-tune their ad strategies for better results.
    • Content Security: Thudo Multimedia provide a robust suite of analytics and reporting tools. This includes detailed insights into ad performance, viewer behavior, and engagement metrics.
    • Cross-Platform Compatibility: The SSAI solution from Thudo Multimedia work seamlessly across a wide range of devices and platforms, including smartphones, tablets, desktops, smart TVs, and more. Ensuring a consistent and reliable ad experience across devices is crucial for reaching a broad and diverse audience.

    Weekness:

    • Learning Curve: Setting up and customizing Sigma DAI’s platform may require a learning curve for some users, particularly those new to video technology.

    In conclusion, the choice of an SSAI service provider should align with your specific needs, budget, and technical expertise. Each provider presents its unique strengths and weaknesses, making it essential to evaluate them thoroughly to determine which one best suits your streaming and advertising requirements.

    AVOD vs SVOD VS FAST: OTT Monetization models

    AVOD vs SVOD VS FAST: OTT Monetization models

    by | Oct 20, 2023 | DRM, SSAI

    In recent years, the surge in popularity and profitability of streaming video services has been remarkable. The digital media landscape has witnessed the emergence of diverse monetization models, including Free Ad-Supported Television (FAST), Advertising Video on Demand (AVOD), and Subscription Video on Demand (SVOD) models.

    However, this evolution has also created new avenues for pirates to illicitly access premium digital content, making the industry vulnerable to piracy and unauthorized distribution. To combat these threats, it is imperative to establish a robust, multifaceted, and scalable content security framework that can accommodate various content distribution and ad-generation models, ultimately envisioning a piracy-free content consumption environment. In this context, let’s explore the different OTT content distribution models and underscore the vital role that content security plays in enhancing the user experience.

    AVOD vs SVOD vs FAST : How are FAST, AVOD and SVOD different?

    What is Free Ad-Supported Television (FAST)?

    Free Ad-Supported Television (FAST) is a model in which streaming services offer free video content supported by advertising. This model has experienced a surge in popularity in recent years, with platforms like Pluto TV, Roku Channel, and XUMO gaining substantial traction. FAST is an attractive choice for viewers who prefer not to pay for premium content but are willing to tolerate advertisements.

    FAST operates on the principle of scale to generate revenue from advertisers. As more viewers consume content, the ad inventory expands, thereby attracting more advertisers to the platform. Since the advertising revenue is shared with the content providers, FAST presents a mutually beneficial solution for all parties involved.

    What is AVOD?

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    Advertising Video on Demand (AVOD), in contrast, permits viewers to access premium video content at no cost, with the condition that they watch advertisements. This model represents a step up from FAST, featuring higher-quality content and a more sophisticated advertising approach that tailors ads to the viewer’s preferences and demographics. A prime example of an AVOD streaming platform is YouTube.

    AVOD can prove to be a lucrative model for both the service provider and content creators, as advertising revenue can be shared between them. However, the success of AVOD hinges on the platform’s ability to attract and retain a substantial audience, a task made challenging by the competitive nature of the market.

    What is SVOD?

    Subscription Video on Demand (SVOD) is a model in which viewers subscribe and pay a fee to access premium video content without encountering advertisements. This model has gained widespread popularity through services like Netflix, Amazon Prime Video, and Disney+. The appeal of SVOD lies in its provision of exclusive content, tailored recommendations, and an uninterrupted, ad-free viewing experience.

    The revenue generation of SVOD hinges on nurturing a dedicated subscriber base. To achieve this, these services make substantial investments in creating original content to maintain subscriber engagement. The drawback of SVOD is that the subscription fees can be relatively high, potentially limiting the size of the potential audience.

    Why FAST and AVOD need Multi-DRM and Forensic watermarking

    While the primary revenue model for FAST and AVOD platforms is advertising, they still have an interest in protecting the value of their content and maintaining positive relationships with content owners. Therefore, they employ multi-DRM systems, either in-house or through third-party providers, to strike a balance between content protection and accessibility for their audience.

    Implementing multi-DRM solutions allows these platforms to apply encryption and access controls to their content, limiting unauthorized viewing or copying. It helps prevent piracy and protects the rights of content owners. Additionally, multi-DRM solutions enable content providers to enforce usage policies, such as limiting the number of devices that can access the content simultaneously or setting expiration dates for downloaded content.

    Forensic Watermarking, is other techniques can be employed to track and identify illicit distribution of content.

    Sigma multi-DRM supports FAST, AVOD and SVOD models that allows your content business to maximize scalability and revenue potential through the OTT video route, all along ensuring a top-notch user experience. The security framework is flexible enough to enforce concurrent streaming experience across devices while providing premium user experience.

    In conclusion, the choice of monetization model depends on the goals of the content provider. FAST and AVOD are great options for content providers who want to reach a large audience, while SVOD is ideal for those who want to generate revenue from a loyal subscriber base. Ultimately, the success of any model relies on the quality of the content and the ability of the platform to attract and retain viewers.

    How Server-Side Ad Insertion Is Transforming Video Advertising As We Know It

    How Server-Side Ad Insertion Is Transforming Video Advertising As We Know It

    by | Oct 20, 2023 | News, SSAI

    In an era when ad blockers threaten the revenue streams of online media companies, technology has risen to the challenge with innovative solutions. Server-side ad insertion (SSAI) is one such technology that offers a way to seamlessly integrate ads into content streams while bypassing ad blockers. This not only ensures that ad revenue is protected but also provides consumers with a high-quality, non-interruptive viewing experience. In this article, we will explore how SSAI is changing the advertising landscape, its benefits, recent developments, and what the future holds for this technology.

    The Rise of Ad Blockers

    Advertising is a reliable source of revenue for many online media companies, but the rise of ad blockers could have a significant negative impact. According to PageFair’s 2017 Ad Blocking Report, consumers used ad blockers on as many as 615 million devices globally, and more than half of these were mobile — that’s a 30 percent increase from PageFair’s 2015 report. Additionally, research firm Forrester estimates that in 2016 alone, $20.3 billion in ad spending was blocked.
    Ad blocking is only expected to increase, and as this trend continues, content providers need a reliable solution to deliver a high quality experience for consumers, while still protecting ad revenue.
    Enter server-side ad insertion (SSAI), a technology that stitches ads directly into a content stream prior to delivery rather than through the app or browser on a consumer’s device. This technique doesn’t simply bypass ad blockers but also reduces the reason for using them, by ensuring ads are delivered seamlessly.
    In order to maximize the benefits of SSAI, media companies should think about ads in a new way – as a part of their overall content strategy rather than as an interruption to the viewer experience. Read on for an overview of SSAI and its benefits; the latest developments around this innovative technology, including reduced latency; and what the future holds for SSAI.

    How SSAI removes the need for ad blockers

    In a conventional system without SSAI, premium video content is delivered via one path, while ads are often “decisioned” and inserted via an independent second path. The two are combined at the consumer end of the delivery chain, where users watch video content. Because the content and advertising are joined at the “client,” viewers often experience interruptions while the app or website orchestrates all the moving pieces. Viewers can experience drops in video quality, black screens, additional video buffering and slower load times.
    More viewers are bypassing this entire inconvenience with ad blockers, which block that second ad delivery path, while still permitting publisher content to arrive through the primary path. It’s important to remember, however, that consumers don’t necessarily dislike ads, but everyone dislikes a negative experience. In fact, in a recent Moz consumer survey, 42 percent of consumers said traditional advertising, like television or radio spots, had a positive effect on their purchase decisions. That’s a clear indicator that the same consumers who are using ad blockers to quiet disruptive ads aren’t bothered by similar messages through other channels. This is where SSAI comes in.
    Also called “ad stitching,” SSAI integrates ad content with video content upstream at the server, rather than at the client. It bypasses ad blockers by serving both pieces of content in one package, making it difficult to distinguish between the two. Additionally, because the ad insertion is seamless and part of the overall video stream, consumers are far less likely to have negative experiences as a result of the advertising.
    Our Verizon Digital Media Services 2016 Quality Matters survey found that 86 percent of viewers say it is very or extremely important to experience TV-like quality every time they watch, on every screen they use. We also found that the average viewing session across all devices falls by 77 percent when there is a significant drop in video quality. SSAI brings increased quality and speed, meeting viewers’ ever-rising expectations.
    Viewers have responded positively. According to a report from ad tech company Free- Wheel, viewers complete 98 percent of SSAI ads served on OTT platforms.

    Greater potential for personalization

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    SSAI does more than just bypass ad blockers — it also helps advertisers offer more relevant, targeted ads. This is partly thanks to the ability for server-side ads to be dynamically “decisioned” and inserted uniquely and per consumer stream.

    For example, an SSAI-based session management tool like our Sigma DAI/SSAI creates a unique session that represents a single user on a specific device. This provides advertisers and publishers with better data — for example, geographic location, device type or historical activity – allowing them to deliver personalization that ensures the right message reaches the right user at the right time. In this way, dynamic ad insertion (DAI) has the potential to help create more personal experiences through enhanced consumer knowledge and targeting.
    Consumers today expect advertising to be both tailored to their interests and compelling, and the session-based approach lets advertisers meet and exceed those expectations. With both DAI and SSAI, a true one-to-one and seamless video ad experience is possible. Improved content delivery increases engagement for the client, mitigates ad blocking, and ultimately, creates a more valuable relationship between advertisers, publishers and consumers.

    Future proofing: What’s next for SSAI

    As the technology that makes it possible continues to advance, SSAI is evolving too. For one, it’s becoming simpler to implement. Across the board, SSAI-savvy publishers are migrating to VAST 4.1, which supports advertisers’ growing demand for third party measurement solutions in addition to higher quality user experiences when ads are playing. This is accomplished through a new industry standard for separating the video ad creative from the measurement, verification, and interactivity components that advertisers rely on today to achieve their digital marketing goals. The new standard also enables these capabilities across a variety of platforms, including desktop, mobile, and OTT devices. Using a single video format across all devices, as we do at Thudo Multimedia, greatly simplifies the insertion, delivery, tracking, and reporting of both content and ads.

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    Another recent innovation in SSAI technology is decreased latency. As RAM storage becomes cheaper year after year, content delivery networks (CDNs) are able to deliver media – including server-side ads – to users more quickly and efficiently. This is especially noticeable when a content creator is relying on one end-to-end CDN to oversee media and ads from start to finish. That means there’s no buffering as the content changes hands, either. We’re also working on facilitating low latency video streaming, complete with full session-based server-side ad insertion. That means delivering content with low latency – 40 percent closer to real time and encoding up to 60 frames per second — all with the full functionality of SSAI.

    SSAI isn’t simply the latest innovation; it’s quickly becoming mandatory. As more viewers come to expect the seamless delivery of content and ads, advertisers and publishers that don’t get on board are certain to get left behind.