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Outsourcing Video Workflows Will be Seen as a Cost-saving Strategy Later in the Forecast Period
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The study focuses on the global video managed services market and research related with a base year of 2017. Video managed services by definition are services where entire portions of a content provider’s digital media workflows are outsourced to a third party. Video managed services are distinct from professional services or consulting services in that video managed services are round-the-clock outsourcing instead of one-time engagements with the option of ongoing maintenance. Video managed services are also different from cloud-based outsourcing, which involves the entire operation rather than the computation components being outsourced. In terms of solution features and structure, the video managed services market can vary with definitions and scope of vendors. This creates significant market confusion as content providers and others in the M&E space examine vendors boasting video managed services. For the purpose of this study, Frost & Sullivan has excluded video managed services providers that are platform-as-a-service or consult on an OTT D2C strategy for customers. Providers that have microservices or modules with an architecture platform for the video workflow through a managed service are counted in this analysis.
A video managed service vendor focuses on three main customer segments: broadcasters, Pay TV providers, and content owners and publishers. The market is slowly growing as homegrown video workflows, and outsourcing to online video platforms and system integrators challenge market growth. Furthermore, there is internal pushback from IT and financial advisors of content providers as video managed services are seen as too costly to use for building and managing seemingly simple video workflows. However, cost benefits associated with video managed services will ignite adoption later in the forecast period as video workflows become more complex. Rising D2C OTT competition will encourage content providers to invest in faster go-to-market solutions for their video workflows. Global expansion and localization of content will further complicate video workflows as well, necessitating investments in help from video managed services providers.
The market is crowded with 20 to 25 companies vying for market share. Regions covered in this research study include North America, Latin America (NALA); Europe, the Middle East, and Africa (EMEA); and Asia-Pacific (APAC).
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