January 26, 2024

Monetizing Screens: The power of advertising to shape the future of video streaming.

Trend Analysis
Szymon Karbowski
Monetizing Screens: The power of advertising to shape the future of video streaming.

Unfortunately, for many service providers, the opportunities presented by advertising are not easy to realize. We know that we can implement appropriate advertising systems and mechanisms. But this year, video streaming providers really need to diversify their revenue streams. They need to focus on advertising-based models.

In recently published Bitmovin's 'Video Developer Report', 36% of respondents believe that advertising is what will drive growth for video creators. 56% of respondents confirmed that advertising/AVoD is the best way to monetise (up 16% increase on last year), while 39% of respondents believe that FAST is the way to go (up 13%). Server-side ad insertion is used by over 67% of respondents (up 12% year-on-year) and client-side by a staggering 51% (up 7%).

Content generated by artificial intelligence and improved video quality is the second biggest opportunity for creators, according to 32% of respondents. A group of 31% believe that attention should be paid to low latency, and the same number say that ad insertion will be the biggest challenge for system developers. The next biggest challenges for the industry are cost control (29% of respondents) and playback on all devices (26%).

Only 6% of video streaming system providers surveyed do not plan to use artificial intelligence (AI) tools or machine learning (ML) models at all. The use of AI tools is aimed at increasing the amount of time viewers spend on a given video streaming platform, increasing their interaction with it, and improving the visual quality of the streaming they receive. This year, AI is particularly being used for audio transcription and speech-to-text conversion, followed by personalisation and video categorisation.

Of course, the survey also asked about sustainability and reducing the carbon footprint. It is well known that many of the video streaming companies would prefer to prioritize green solutions, but unfortunately the implementation of these systems is blocked by their high cost (40%). A group of 24% of respondents believe that sustainability is a priority and would be willing to pay more, while 6% have no doubts at all and believe that green streaming is the most important.

The past year has been quite challenging for our video streaming industry, especially from an economic perspective. The challenges that  ahead seem to be quite demanding, but I also see great opportunities for us.

#SzymonKarbowski #StreamVX #videostreaming #report #AdvertisingSystem #report #AI

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