Integrated video optimization sector to touch $898 million in 2011

Integrated video optimization providers are forecast to
earn $898 million in 2011 revenue, an increase of 44percent over 2010,
according to a sector analytics report by AccuStream Research

The report, Integrated Video Optimization Solutions 2007 – 2014, analyzes
multiple categories of media optimization services, encompassing end-to-end
providers Brightcove, Ooyala, KIT Digital, Kaltura, Limelight Video Platform,
thePlatform, MobiTV, Move Networks and others. 

The indexing, metadata, tracking and media measurement segment comprise
specialists such as Auditude, Digitalsmiths, BayTSP and RAMP.

The media processing, encoding and transcoding section provides detailed
analysis of Sorensen Media,, Origin Digital and Anvato. 

Over the past year, online video platforms (OVPs) have significantly enhanced
and transformed both their services and market positions. OVP is now supporting
module in a rapidly expanding alignment of integrated competencies.  

Integrated solutions address multi-device distribution, mobile, video ad
network integration, multiple file formats and source material renditions, plus

Their focus is both behind-the-firewall and consumer-facing accounts and
layering in a suite of media processing, measurement and workflow management

Account acquisition is currently accelerating, forecast to reach 15,973 (annual
average) in 2011, up 69 percent  over 2010, a year when accounts grew by
50.5 percent. International accounts and corresponding top line revenue make up approximately
30% of the total. While international markets are in varying stages of
development, U.S.-based vendors have captured significant share. 

MRR averages $3,849 in 2011. While larger organizations (including enterprises)
require additional capacity and are buying more, there is rapid growth seen in
self-service accounts, though concentrated at lower MRR ranges. 

Business models and growth trajectories are analyzed for each provider. MRR,
licensing and usage-driven business models currently capture 75 percent of the
full-service segment’s revenue. Media processing exhibits the highest growth,
at 140 percent in 2011.

“This dynamic sector is leading the charge to provision a screen-deep,
increasingly complex media workflow, distribution, monetization and marketing
environment, recent acquisitions peg the sector at 2x 2011 revenue; valuations
that continue pulling in venture capital, while spurring additional M & A
interest,”  said AccuStreamresearch  director Paul A. Palumbo. 

By Team