Tuesday, April 14, 2015

Video Monetization 2015 report and market shares released

Live from Las Vegas, where I am at NAB, for the week, the mobile video monetization and optimization 2015 report is now released. You can find the updated description and executive summary there, as usual, table of contents and terms are available upon request, do not hesitate to contact me (patrick.lopez@coreanalysis.ca).

As usual, I provide market share calculations in term of deployment per vendor, the unit being one operator / country. For instance, Verizon Wireless counts for one deployment, even though the operator might deploy 40+ data centres. Groups such as Vodafone, Deutsche Telekom or Telefonica count for each of the properties where the technology is deployed.

For this 2015 edition, we have seen quite a lot of changes year on year and an acceleration from the trends highlighted in last update, ranging from the continuing growth of mobile data and video traffic, complicated by the increasing encryption and privacy concerns. 

Emerging markets and MVNO with smaller volumes fuel the growth with lower price points and tier 1 replacements are slowing down due to regulatory uncertainty. It is hard to predict how long this is going to last, but I am betting on a protracted battle and operators slowly having to take investment decisions despite uncertainty because their network is under too much pressure. TCP optimization, caching, throttling will continue to lead engagements in countries under strong regulatory mandate or uncertainty, while transcoding, DBRA and other lossy technologies will continue to lead in emerging and weak regulatory environments.

The mobile video monetization and optimization market segment researched in this report is composed of 8 primary vendors.

2015 has seen a great change in market shares, as indicated in the previous reports and throughout my quarterly updates. You can find the fall's market shares here, if you want to track the vendors' progression.
  1. Citrix keeps its historical market leader spot, with a slight progression to 32%. 
  2. Flash Networks had lost the number 1 spot last update and is maintaining itself at 31%. 
  3. Openwave is solidly in third place, growing to 13%.
  4. Fourth place is now claimed by Allot, with the fastest progression this update to 7%, 
  5. Vantrix is in a slight decline at 6%. 
  6. Nokia declines to 5% and has decided to resell Flash networks going forward. 
  7. Opera has declined to 4%. 
  8. Avvasi closes the market share with a growth to 2%.
The market share calculations are based on a proprietary {Core Analysis} database, collecting data such as vendors, re-sellers, value of the deployment in term of total cost of ownership for the operator, operator name, country, region and number of mobile broadband subscribers. These data are cross-referenced from vendors' and operators' individual disclosures. This database also includes over 130 opportunities in video optimization that are at different stage of maturity (internal evaluation, vendor trial, RFI, RFx...) and will close over the next 18 months.

To understand the vendors' trajectory, velocity and strategy better, contact me.