DVEO - Executive Predictions for 2018
The streaming industry, like any other industry, experiences cycles brought about by technological change causing periodic shifts in the value perceptions. Right now we are experiencing a “lull” in the industry as the impact of cloud delivery takes hold in everyone’s psyches. Amazon and Netflix have disrupted the content delivery industry so forcefully that all the other players now are figuring out how to position themselves. Basically everyone else is now playing defense.
What does this mean for the industry? It means that this “lull” will stay with us for the next one to two years as new delivery platforms are being designed. The new competitive platforms will only be funded when the cost of delivery approaches the cost of delivery for Amazon and Netflix.
The following two things have to happen. Cost of bandwidth has to drop. A new “Next Gen” codec also has to be finalized and adopted by the major players. Once these two “upgrades” materialize, then smaller midsize content owners and content aggregators can redesign their go-to-market architectures. And competition can begin on different basis such as product features and product support. I am confident that human intelligence and ever larger market opportunities will drive down the cost of bandwidth. Perhaps government policies will “nudge” the process. We shall see.
The decisions about NextGen codecs are H.265 and AV1. The players are lining up and the public is pushing for a decision. I believe we are very close. Once the decision is made then a new round of boxes and appliances will have to be built. DVEO like others is taking this “lull” as a “re-engineering” period. Being agile, we can move rapidly and stand ready for the next wave!
Laszlo Zoltan
VICE PRESIDENT | DVEO
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