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Monetizing OTT Video


Traditional IP networks without an end-to-end QoS (quality of service) architecture provide best-effort service over a common, shared infrastructure, but any link or node in the network can experience congestion.

Another Canadian operator, Wind Mobile has been working with Avassi to address video analytics since 2011. At the time, the mobile service provider’s network was experiencing unprecedented increases in OTT-video traffic, and as the levels of traffic rose, Wind Mobile wanted to look more closely at the influx of data in order to identify new traffic patterns and determine how it could best enhance subscriber QoE. Wind implemented a solution that offers comprehensive measurement of OTT-video QoE, in-depth analysis of video-traffic trends and an independent QoE score that captures the impact of network performance on OTT video as viewed on mobile devices and visual fidelity. This information was crucial for Wind Mobile to understand how its wireless network delivers OTT video, and these insights helped it explore strategies for enhancing OTT video for its growing customer base.

Some mobile service providers have initiated partnerships to help offset profit balance issues, like Verizon’s partnership with HBO. By using its own content delivery network (CDN), Verizon can guarantee that when a subscriber watches an HBO program it will be delivered with a strong QoE, one that meets the expectations subscribers have when they pay for such a service, which is preferable to the alternative of subscribers trying to access HBO content from another source but without that guaranteed level of QoE.

Coming out on top

To deal with the increase in video demand, there are generally three things mobile service providers can do:

  • Expand their networks to accommodate the growth in traffic. However, network expansion is costly and doesn’t generate revenue.
  • Deploy optimization solutions. This enables mobile service providers to control bandwidth according to network conditions and possibly recover minor cost savings, but, again, does little to generate revenue. In addition, video optimization beyond a certain amount requires a significant trade-off in video QoE. Because they know that 78 percent of mobile-video consumers had experienced video QoE issues and more than 60 percent were willing to pay for value-added services to improve their viewing experience just three years ago, mobile service providers can’t afford to optimize at the expense of their subscribers’ QoE without running the risk of subscriber churn.
  • Offer subscribers QoE-based video services. This is the ideal option for mobile service providers and enables them to monetize OTT video.

A successful OTT-video architecture must bring together service providers, content providers and advertisers that recognize the issues and opportunities that video QoE presents, and industry players must be committed to an open architecture for video service delivery. Only when a cohesive value chain is in place and company decision-makers have increased their awareness of what the customer is experiencing on his or her mobile devices will monetization strategies become a reality. By exploring available resources and using the data on hand to improve the customer experience, advertisers can take comfort in knowing that their marketing budgets aren’t being wasted, and that the message they’re conveying is being received loud and clear and interruption free.



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