Monday, April 7, 2014

Video monetization and optimization market shares 2014

For those of you, loyal readers who have followed this report, now in its third edition, there will be no surprise as to why monetization is making its appearance in the title and figures so prominently in the analysis and opinions voiced there.

Mobile video optimization was a solution brought forward by web optimization, browsing gateway and mobile video vendors that was positioned as a means to drastically reduce the volume of video transiting through a mobile network. With a combination of lossless (caching, pacing…) techniques aimed first at reducing the inherent waste of delivering videos created for the internet and laptops in a mobile network, the solution evolved towards aggressively reducing video volume through lossy (transcoding, transrating) techniques.

Vendors in this space have evolved their offering from a broad, binary application of the technology, essentially proxying and optimizing all video traffic all the time to a more granular, targeted implementation that performs optimization to portion of the traffic, at specific points in time in specific locations, driven by policy engines or relying on network congestion detection, either on explicit indication from the RAN or interpolation relying on the state of the TCP traffic. Most vendors are also now launching customer engagement tools, sophisticated analytics or new video charging capabilities to enable early monetization plays.

As usual, I provide market share calculations in term of deployment per vendor, the unit being one operator / country. For instance, Verizon Wireless counts for one deployment, even though the operator might deploy 40+ data centres. Groups such as Vodafone, Deutsche Telekom or Telefonica count for each of the properties where the technology is deployed.

Market shares

  1. Flash Networks
    Flash Network’s market share is 40% . It is the market share leader and has grown faster than the market since the last update, through organic growth and acquisition of Mobixell Networks.
  2. Citrix
    Citrix’ market share is 30%. The company has grown faster than the market  since the last update.
  3. Openwave Mobility
    Openwave Mobility's market share is 8%. The company has grown faster than the market since the last update.
  4. Venturi Wireless
    Venturi Wireless markets is 8%. The company has lost market shares since the last update.
  5. Others
    Allot, Avvasi, NSN, Opera, Vantrix (in alphabetical order) share the remaining 14%.
The market share calculations are based on a proprietary {Core Analysis} database, collecting data such as vendors, resellers, value of the deployment in term of total cost of ownership for the operator, operator name, country and region. These data are cross-referenced from vendors' and operators' individual disclosures. This database also includes over 130 opportunities in video optimization that are at different stage of maturity (internal evaluation, vendor trial, RFI, RFx...) and will close over the next 18 months.

The market share is valid at the time of publishing but change on a weekly basis, as new deals are awarded.

The market share in term of revenue is not published here but is available as part of my workshop on the video optimization market. The rankings in term of revenue per vendor are quite different from the installed market share, as different price strategies and different geographic markets are considered.

1 comment:

Jas Sangha said...

Hi Patrick,

I think the "unit of measure" for the calculation of market share used in your blog does not adequately represent the vendor presence in the market.

Treating presence in a tier-3 operator the same as a deployment in a top tier-1 operator, I think is an inadequate representation of market share.

Some relevant indicators to represent market share could be:
1) Revenue or bookings
2) Subscriber base covered
3) Throughput/Capacity
4) New business vs expansion $ value.

- Jas Sangha