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Trending at IBC 2017

The media software industry is changing as the industry at large goes through a shift. As I power walked through the halls at the RAI during IBC I noted some observations about the changing media landscape.

Service Providers & OTT

Fueled by streaming video, non-linear media consumption continues its strong growth. It was easy to see that 2018 will have telco’s become the primary OTT providers. Booths for the likes of Verizon, Comcast, Etisalat, and Telstra were all present and showing off their latest services.  

Today, you can look to Verizon as the case study. Through acquisitions of Yahoo!, AOL, Edgecast Networks, Volicon and others, they have enabled themselves to be a real player within the OTT space. This consolidation is visible with other telco’s as well (Telstra/Ooyala) and is rapidly changing the media software landscape.  

Service Providers need to make a big bet on OTT. If OTT solutions are the way we will consume media in the next 5-10 years, service providers need to be well placed to take advantage. Waiting in the wings to see which direction the industry moves in, is no longer an option.

Service Providers are ready to Make Decisions

Given the magnitude of the technological shift, service providers seemed to have been delaying their decisions regarding the installation of core technology platforms over the last 1-2 years. This had a profound effect on the industry and one that is only just righting itself. Some vendors mentioned that there was a mini pause in the industry, which put many of them in a tough position. This position was intensified due to the business models that have historically been employed in the space.

Cloud-Based Business Models

With cloud and SaaS contracts only recently becoming palatable to broadcast media players, software vendors had relied on big upfront deals to fund their growth. With a lack of new contracts in the marketplace over the last years, it further highlighted the need for more sustainable OPEX based business models. A trend which I continue to see more and more of since starting to cover the media space in 2015.

An Uncertain Future

What types of devices will people be consuming media on in 5 years from now? Will the cloud be the dominant delivery model for software? Perhaps at IBC 2018, there will be more clarity as to what will unfold. Until then, you can be sure that innovation will continue at a rapid pace, fundamentally changing the media market.

September 19, 2017

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Elliot Yunger

Elliot Yunger serves as the Director of Business Development of the Communications & Media Portfolio. Before joining Volaris Group, Elliot worked for Cyhawk Ventures, a Tel Aviv based Venture Capital firm in sales organization for multiple businesses. Once returning to Toronto, he joined up with the Volaris Group to help accelerate growth across multiple verticals before specializing within the Communications & Media portfolio. Elliot has helped to lead multiple acquisitions and integrations for Volaris Group and has worked in Singapore, India and Tel Aviv.