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Survey in collaboration with Caretta Research
State of technology procurement in OTT.
"The main issue with building new systems is that you invest maybe six or nine months, hire new people, AB test the outcomes, and you end up with something that is no better than if you had just gone to a supplier."
— A leading US OTT platform
"We did everything in-house, we hired hundreds of developers for several years to make exactly what we wanted. Now that we really know what we need, we start looking at vendors again."
— A large European pay-TV platform
Here are some of the latest industry insights on OTT, VOD, and streaming technology procurement.
Over 79% of OTT backends rely on external tech. This was associated with a fairly even split between off-the-shelf tech purchases and components customized in-house or with vendors.
50% of platforms plan to upgrade one or more of their components in the next two years. The most popular strategy to source VOD software is a hybrid approach.
Controlling the development roadmap was the main reason that drove OTT video platforms towards building components in-house.
Almost 80% of OTT, VOD, and streaming services customized their products before deployment (50% did it in-house, 50% with vendors).
The top technical factor influencing Build or Buy decisions in OTT is customizability, with 63% of OTTs preferring to buy flexible tech.
There is no single best way to source an OTT tech stack. The split between developing components in-house, buying external tech, and acquiring pay-as-you-go services is pretty even.
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