Bitmovin said its latest Video Developer Report indicates an increasing role of AI, the slow adoption of next-generation codecs, and continuing challenges when it comes to ad insertion. It also demonstrates a disconnect between sustainability efforts and cost implications.
According to the report, ML/AI is the driving force behind a number of innovations in the media and entertainment technology industry. Almost a third (28%) stated that audio transcription and speech-to-text are where they will be using AI tools to improve customer experiences. This is followed by tagging and categorising video (13%) and personalisation (8%). However, the number of respondents saying they have no plans to use ML and AI is 9%, up from 6%.
This year’s report saw advertising (15%) remain the top opportunity for innovation. However, ad insertion also remained the top challenge, cited by 38% of respondents. The research also showed that the number of respondents using the advertising/AVOD business model has grown to 69%, up from 56%. Additionally, the number of respondents using the FAST business model is 46%, up from 39%.
Stefan Lederer, CEO and co-founder of Bitmovin, said: “Since our first report in 2017, the streaming industry has undergone a massive transformation. This year’s findings show the industry’s continued focus on being able to monetise content effectively to support growth. However, the fact that ad insertion is the top challenge for the industry reflects the ongoing technical challenges with ad insertion. The industry needs to solve them if it wants to maximise the benefits of ad-based revenue models.”
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