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Verimatrix - View From The Top 2017

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The Five Crucial Challenges for Video Service Providers

There are five challenges that we feel collectively sum up the current focus for many service providers around the world; convergence, consolidation, co-option, commoditization and cloudifi?cation. What we call the 5Cs. All five are dictated by the evolving technical and business landscape, and have their own implications for revenue security.

The first challenge, convergence, is happening for almost all operators and is about incorporating OTT services fully within the core package and offering the platform to content owners to generate additional revenue from the investment.

Another challenge, consolidation, is bringing together services or operators that previously existed in different silos. Last year, consolidation occurred at Verimatrix when we launched Verspective Operator Analytics, which is a new way we are able to generate greater business value for our customers.

Closely related to consolidation lies the third challenge, co-option, involving integration between components, and the adoption of internet technologies by established pay-TV operators. An example of this is when TV and display manufacturers Seiki, Westinghouse Electronics and Element Electronics announced a new line of 4K/UHD smart TVs branded as the Amazon Fire TV Edition.

These trends all are related to another challenge, growing commoditization, at both hardware and software levels, allowing simpler integration between services. RDKs (Reference Design Kits) have been playing a key role, growing from their base in cable TV as a standardized software layer between services.

The last challenge is cloudification, which triggers all the other challenges by “hollowing out” the video head-end and removing critical functions to the cloud where they can be fully integrated and managed. We see the cloud reinforcing revenue security through multilayer defensible platforms.

We like to think of these trends as enabling new opportunities for growth. At Verimatrix, it is our mission to provide technology that is agile enough to support digital video service providers as they power new transitions. Let us know your thoughts at www.verimatrix.com/blog.

-Tom Munro, CEO - Verimatrix

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