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Frost & Sullivan: More Internet Video Traffic Encourages Adoption of Over-The-Top Video Test and Monitoring Devices


News provided by

Frost & Sullivan

26 Mar, 2013, 11:48 GMT

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-- Network operators' need to measure quality of experience to strengthen demand for over-the-top service testing

MOUNTAIN VIEW, California, March 26, 2013 /PRNewswire/ -- Over-the-top (OTT) video applications are expected to generate more than half of all Internet protocol (IP) traffic globally by 2020. To manage and optimize this traffic, network operators have to deploy end-to-end OTT video test and monitoring solutions that can measure the performance metrics of the network. Participants that are currently active in traditional video testing and IP video testing markets are expected to benefit the most in the next five years from this rising trend.

New analysis from Frost & Sullivan (http://www.testandmeasurement.frost.com), Global Over-the-top Video Test and Monitoring Market, finds that the market earned revenue of $27.7 million in 2011 and estimates this to reach $58.7 million in 2018.

If you are interested in more information on this research, please send an email to Jeannette Garcia, Corporate Communications, at jeannette.garcia@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Going forward, quality assurance will play an important role in the adoption of OTT applications. It is critical to measure the quality of experience (QoE) of the network under realistic conditions to determine the pressure points and impact of possible failure.

"Service providers are constantly looking to partner with test solution vendors that offer monitoring solutions in order to provide a network-centric view for analysis and locate errors," said Frost & Sullivan Measurement & Instrumentation Senior Research Analyst Srihari Padmanabhan. "It is expected that the service providers that deploy monitoring solutions measuring the QoE level and analyze subscriber activity will be in a better position to monetize their offering and increase customer loyalty."

While most OTT services are available free of cost, there are opportunities for new business models that provide 'premium services' with better QoE. As new business models evolve around OTT content, service providers will increasingly invest in actively tracking user behavior for analytics and optimizing purposes.

The return on investment from a monitoring solution in the OTT video testing market is difficult to quantify. Historically, end users of these solutions consider it a 'good to have' solution for troubleshooting and fault management. Even though service providers are gradually acknowledging the importance of deploying monitoring solutions, it will be a few years before they can offer demonstrable ROI  from using such solutions.

Non-PC devices such as smartphones and tablets are also experiencing higher volumes of Internet video traffic, and users can now access on-demand videos anywhere, anytime. This presents new challenges in terms of customizing the resolution of the video and bandwidth to suit the wide range of devices being used.

"Customers are constantly raising the bar for the required quality of service," noted Padmanabhan. "Therefore, by offering service level agreements, vendors can keep pace with the demand, reduce customer churn, and increase average revenue per user."

Global Over-the-top Video Test and Monitoring Market is part of the Test & Measurement Growth Partnership Service program. Frost & Sullivan's related research services include: Global Wi-Fi Test Equipment Market and Customer Experience Monitoring Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Global Over-the-top Video Test and Monitoring Market
NA92-30

Contact:
Jeannette Garcia
Corporate Communications – North America
P: +1.210.477.8427
E: jeannette.garcia@frost.com 
http://www.frost.com

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