Analysis firm Ovum says the business of delivering content to broadcasters and online video platforms will be worth £400m by 2018.
In a study commissioned by Nativ, media logistics platforms - Ovum’s newly coined term to define the logistics software businesses that manage the processes of production, ingest, post-production and transfer of media and data to broadcasters and online video platforms - are thought to have a current potential value of £100m across Europe, North America, APAC, South America and Middle East and Africa.
Ovum says the total addressable market is set to quadruple in value over the next four years as cloud and file based-workflows become mainstream.
Ovum IT, Media & Telecoms consulting directorand practice leader Adrian Drury said: “Just as the online video platforms market has seen rapid growth and an accelerated journey to maturity, so the media logistics platforms market is now set for growth as premium media companies look to solve the media management and logistic challenges that are today acting as an impediment to growth.”
Ovum said that many traditional media companies have created personalised, multi-screen services in response to the disruptive threat of new media players such as Google, Amazon, Apple, Netflix (pictured) and Spotify.
It found that the “growing maturity, audience volume and revenue yields from these multiscreen services is exposing failings of traditional systems and processes for media management and logistics and this is becoming a choke point for growth of multiscreen services as all parties in the media supply chain wrestle with the cost and complexity of format and platform fragmentation”.
Nativ managing director Jon Folland added: “At Nativ we have seen first-hand the value of the services we offer to this exploding market.
“Managing the production, post-production and distribution of content on a single platform can offer a high degree of workflow automation, visibility and huge costs savings.
“New MLPs provide an answer to what has traditionally been a very manual, costly and erroneous business.
“Clients such as ITV and Audi use Nativ’s platform to take back control of their content to enable them to build the complex workflows to manage their media and deliver to these different platforms.”
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