What’s the cost of streaming leadership❓
🤔 In an era of increasing internet connectivity, where more people are drawn to their favorite streaming media ecosystems driven by content, convenience, and cost, it is relevant to question what it takes to establish global leadership in streaming media.
Anticipate an annual cost (OPEX) of approximately $3 billion (or roughly 10% of revenue). This cost is necessary to maintain and develop an existing, extensive platform and infrastructure with highly experienced, top-notch technological streaming capabilities in-house.
This consideration arose as I delved into the Netflix Technology Blog and the Netflix Annual reports. True, Netflix is “only” VOD, although they've ventured into live streaming. Yet, live streaming presents a vastly different challenge in terms of real-time complexity.
IMO, Netflix has been a technological streaming pioneer and powerhouse since the inception of their streaming service. Their understanding not to underestimate the complexity of streaming reflects in their impressive dedication to technical details and its significance to profitability. 💰
IMV, this dedication is the reason Netflix can deliver a more efficient, consistent, and premium viewing experience than their peers and anyone else. I believe this technological efficiency is a critical factor in why Netflix is more viable and profitable compared to their peers, and what makes people come, stay and pay.
This isn't advice for anyone to mimic every move Netflix makes, but respecting technological end-to-end complexity might help you avoid the streaming trap. You know, that classic mistake of adding high-profile streaming boxes (and "insurance") and spending your entire budget on making supposedly interoperable high-profile boxes actually, well, interoperable.
Streaming is an end-to-end game. Especially in live streaming, it's a comprehensive journey, navigating an unmanaged, best-effort network (OTT) to a media player that, if you're lucky, you can sometimes control. It unfolds on a platform that may or may not adhere to an OTT “standard”, leaving ample room for interpretation.
OTT streaming demands both horizontal and vertical technological end-to-end prowess, as well as a deep well of experience and insight into the intricate details of the entire streaming process, including the devices and OS you stream to.
mediathand's #Streaming #SWAT #team is the go-to for resolving streaming issues. We've often encountered unnecessary high costs resulting from insufficient or subpar tech decisions and solutions. These oversights often stem from neglecting streaming details or solely addressing problems within a limited segment of the streaming chain.
🔗#ATSC #ATSC3 #Broadcast #Broadcasting #cabletv #CTV
#CTVAdvertising #CTVWars #DVB #ISP #FAST #media #mediatech #MVPD #vMVPD #NAB #NabAmplify #NextGenBroadcast #NextGenTV #OTT #PayTV #Streaming #Streamingmedia #StreamingWars #Television #video
https://lnkd.in/dacqWNQH