AI is Driving Efficiency, Engagement and Monetization in the Streaming Economy

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(Image credit: Getty Images)

AI is a transformative force in the media and entertainment industry, reshaping how video is delivered, monetized and consumed. For streaming providers, broadcasters and sports networks, AI has become a cornerstone of innovation. Leveraging AI, service providers can deliver higher-quality experiences while reducing operational costs and unlocking new revenue opportunities.

AI is being applied across the entire video delivery chain, driving efficiencies for video service providers and enhancing viewer engagement. From smarter video compression to workflow automation, audience engagement and monetization, AI is powering the next era of video streaming.

Achieving Smarter Video Compression with AI
The latest video compression technologies are using machine learning to mimic the human visual system, intelligently allocating bits where they matter most to viewers.

This approach brings efficient variable bitrate encoding to the ABR ladders used for OTT delivery and provides up to 50% bitrate savings while maintaining exceptional video quality. Through a two-step AI/ML pipeline that includes offline learning and real-time encoding, AI optimizes compression efficiency, reducing both storage and CDN costs for service providers.

Ultimately, AI enables service providers to deliver UHD-quality video and beyond at significantly lower bitrates, cutting costs without compromising the viewer experience. For viewers, it ensures consistently smooth, high-quality streams, even in situations where bandwidth is constrained.

Increasing Workflow Efficiency through AI Automation
AI-based analysis is now reducing the human labor involved in creating video streaming channels, helping service providers scale faster and more cost-effectively. There are several key applications where AI is improving workflow efficiency for video streaming.

Automatic scheduling and channel creation: With AI-driven automation, tasks that once required hours of manual configuration can be performed in minutes. For instance, AI models can automatically generate schedules for linear streaming channels as well as create new channels based on topics or themes.

Automatic ad break detection: Through AI, service providers can automatically insert ad breaks in VOD assets and live content, enabling monetization of any feed without the need for production crews or manual operations.

Dynamic brand insertion: AI is opening up new opportunities for dynamic brand insertion, also referred to as in-content virtual product placement. This approach goes beyond traditional ad breaks by seamlessly blending branded content into the video stream. For example, AI can digitally insert a targeted ad in the form of a billboard, logo or product directly into the scene. While typically processed offline rather than live, these techniques create highly targeted monetization opportunities, allowing service providers to maximize ad value without disrupting the viewer experience.

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(Image credit: Harmonic)

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A comparison of a TV scene showing an empty countertop in the background of the first photo, and AI-powered dynamic brand insertion of a Gap bag in the second photo. (Image credit: Harmonic)

Real-time sports highlights: Service providers are leveraging AI to create sports highlights in real time. Using AI streamlines highlight production, enabling broadcasters and streaming platforms to meet the viewer demand for engaging, bite-size content.

Driving Audience Engagement via AI
Viewer expectations are evolving rapidly, particularly for live sports streaming where real-time interaction and personalization are becoming the norm. Service providers can stay ahead of this trend and transform fan engagement by leveraging AI and generative AI.

AI-based analysis, combined with generative AI tools, is enabling automatic creation of highlight clips, automated translation with voice cloning or over-dubbing across multiple language and interactive fan experiences. For example, a live sports event can be delivered with localized commentary in multiple languages, ensuring global accessibility and inclusivity.

AI-driven sports clipping further enriches programming by automatically detecting high-action or emotional moments and re-packaging them for social media or second-screen experiences. This not only boosts engagement but also extends monetization opportunities through new ad inventory and sponsorship placements.

Elevating Monetization and Personalization via AI
AI is enabling contextually relevant advertising, boosting monetization for streaming providers in today’s highly fragmented and competitive market.

Leveraging AI, service providers can automatically detect ad breaks in live sports content and insert the SCTE-35 markers needed for downstream ad insertion. When offering innovative in-stream ad formats such as split-screen ads or dynamic overlays, streamers can use AI to detect high- and low-action moments in a game and trigger the automatic insertion of the in-stream ad units.

Delivering contextually relevant full-screen ads and non-intrusive in-stream ads will boost viewer engagement, satisfaction and loyalty to the streaming platform. For service providers, this translates into higher ad revenue, reduced churn and stronger relationships with viewers.

The Bigger Picture: AI as a Catalyst for Video Streaming Efficiency & Revenue Growth
AI has become a catalyst for efficiency and revenue growth in the video streaming industry. By optimizing compression, streamlining workflows, boosting viewer engagement and unlocking monetization, AI enables media companies to thrive in a competitive environment.

At a time when audience expectations are soaring and profitability pressures are rising, AI provides media companies with critical tools to stay ahead. As service providers embrace AI across their video streaming operations, they will be empowered to streamline video workflows, deliver richer streaming experiences and capture new revenue streams, creating lasting value for viewers.

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Jean Macher is Senior Director, Global SaaS Solutions at Harmonic where he drives the marketing efforts for the company’s SaaS portfolio. Macher brings to Harmonic a wealth of expertise in cloud video and U.S. TV ecosystems, stemming from more than 20 years of experience in solutions and product management, working closely with media companies on the latest streaming innovations.