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QoE level offers OTT operators path to premium services, finds analysis

The role of test and monitoring solutions will play in OTT service delivery is likely to increase over the next few years as service providers take advantage of new opportunities to deploy premium OTT video services based on quality of experience, according to a new analysis from Frost & Sullivan.

In the meantime, quality assurance will play an important role in the continued consumer adoption of OTT applications and services, Frost & Sullivan says.

The analysis, Global Over-the-top Video Test and Monitoring Market,” however, anticipates it will be a few years before service providers can demonstrate a return on investment from deploying test and monitoring solutions.

"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," said Frost & Sullivan Measurement and Instrumentation Senior Research Analyst Srihari Padmanabhan."

According to the analysis, OTT video applications will be responsible for more than half of all IP traffic around the world by 2020. The OTT test and monitoring market earned revenue of $27.7 million in 2011 and is estimated to earn $58.7 million 2018.

The analysis also sees higher volumes of Internet video traffic originating from consumers using smartphones and tablets to access on-demand content wherever they are. Customizing video and bandwidth to meet demand from these devices creates new challenges for operators, it added.

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