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The Strategic Value of Outsourcing Operations for OTT Platforms

July 29, 2024

Chris Pulis, Chief Technology Officer at Globecast shares his thoughts on the best next step OTT platform owners can take in the fast-paced era of media services.

We have been taking on this important service in the last few years managing platforms and high-value live content.  Our initial experience has been to also learn from big tech customers on how to run their platforms.  They were the first to recognize that platforms with live broadcasts at the core of their offering are not just easy IT environments to manage.  Our customers learned the hard way that more than a software product, the live content that comes at such an enormous cost to the business has unique acquisition, processing, and delivery challenges that pure software and IT teams are simply not equipped to handle.  That’s why they come to us. 

The stakes are simply too big for failure. With growing consumer demand for everywhere access to live sports, award shows, and other event-driven content where millions of concurrent subscribers are glued to the streams, the differentiation between broadcasters and non-broadcasters in terms of operational competence becomes starkly evident. This is why, given the intricacies involved, even the largest platform owners are turning to outsourcing as a strategic move to leverage specialized skills; particularly with industry veterans like Globecast, who have been at the forefront of video acquisition and distribution for decades.

Broadcasters vs. Non-Broadcasters: Competence in Specialization

The divide between broadcasters and non-broadcasters in managing OTT platforms primarily centers on their experience and expertise in video operations. Managing live broadcasts makes them inherently more attuned to the nuances of live video delivery—ranging from signal acquisition to distribution to the edge.  “Just do it over the internet” is a concept that has pitfalls unless you know what you are doing. This includes mastery of low-latency and redundant architectures as well as real-time failover capabilities along the entire value chain.

Although they are clearly some of the smartest product and content owners on the planet, non-broadcasters, such as pure-play internet companies or media startups, often lack the requisite deep-seated expertise not realizing how vulnerable they are to success for their subscribers. Although they may excel in other aspects of digital content, such as user interface design and personalized content recommendation algorithms, they frequently struggle with the real-time technical demands of live television. This gap in expertise can lead to frustrated and angry users burning you in effigy on social media or content partners upset their sports events failed to get to their fans.  Not to mention platform owner C-level executives wanting to understand why subscribers and revenue projections have missed targets due to churn and other signs of “anticipointment” by subscribers canceling their subscriptions.  Most of us who work in Media & Entertainment are also consumers too and we have zero tolerance for these same delays or interruptions.  The consumer experience is an “always on, always available expectation” ingrained in us by broadcast television. In the US, it’s almost an evolutionary law.

Stream Management is video engineering, not IT

Video stream management involves a complex set of processes and technologies designed to ensure the seamless delivery of content to end-users. Specialised skills in video encoding, quality assurance, media management, and distribution are essential. Unlike static video-on-demand content, live broadcast streams require real-time data processing and an extremely reliable infrastructure to handle sudden spikes in viewer traffic and bandwidth demands.  There are also the variables consumers encounter due to how they are connected – their ISP.

Outsourcing platform operations to specialists can mitigate risks associated with live event streaming. Specialists like Globecast not only possess advanced technologies and systems tailored for video management but also have experienced personnel who can anticipate and respond to potential issues swiftly. This expertise is invaluable, particularly when streaming high-profile events that attract large global audiences and where even a minor glitch can have significant repercussions.

The High Stakes of Live Broadcast Content

Live content, particularly sports, is the crown jewel of broadcast media. Sports broadcasting rights are incredibly expensive and represent significant investments for media companies. For example, broadcasting a major football event not only multi-millions to secure those rights, but in turn, requires also a robust infrastructure to ensure the live feed is uninterrupted and of the highest quality.

Leveraging Decades of Experience

Globecast has been a prominent player in the field of video acquisition and distribution for decades, providing a wealth of experience drawn from legacy broadcasting technologies to the latest in live streaming. This significant experience allows Globecast to innovate while maintaining reliability and quality in their service offerings. Their expertise encompasses everything from satellite and fiber optics for content acquisition to advanced encoding techniques and CDN management for distribution.

The value added by Globecast is not just in its technological capabilities but also in its understanding of the broadcast ecosystem. This includes regulatory compliance, rights management, and integration with existing broadcaster workflows, which are often overlooked but vital areas in live content delivery.

Accountability: Importance of KPIs for Vendors

For service providers like Globecast, adhering to strict Key Performance Indicators (KPIs) is essential.  Any customer is going to want their provider to be accountable.  These KPIs include metrics such as issue response times, resolution rates, system uptime, and viewer quality of experience. In an industry where viewers may switch services after a single poor experience, maintaining a high level of performance in these areas is critical.  That’s why KPI capture is key.

Effective issue response and resolution practices are particularly crucial during live events since issues must be addressed in real time. Globecast excels in this area by employing advanced monitoring tools and a skilled technical team that can quickly diagnose and rectify issues, often before they impact viewers.

Best Practices in Data Center Systems Deployments

The backbone of any OTT service is its data center operations. Best practices in data center deployments involve not only state-of-the-art physical infrastructure but also sophisticated software management tools that optimise the delivery of content across various networks. Globecast utilises top-tier data centers equipped with the latest in technology, coupled with redundant systems and robust disaster recovery protocols to ensure high availability and resilience.

Moreover, continuous improvement is the cornerstone of Globecast’s operational philosophy. By consistently maintaining systems and adopting innovative technologies, Globecast ensures infrastructure is not only healthy but also capable of meeting the future demands and growth of the platform.

Incorporating AI into OTT Platform Operations: Enhancing Behind-the-Scenes Efficiency

AI is revolutionizing various sectors, and the broadcasting industry is no exception.  It was the buzz all week at NAB. In the context of OTT platforms, where the focus is on delivering seamless content delivery experiences, the integration of AI can significantly enhance operational efficiencies while maintaining a seamless user experience that would have its own AI profile (or augmentation). This integration can be seen in several critical areas that improve the overall service delivery and operational robustness of OTT platforms.

Content Quality Control

One of the primary applications of AI in OTT operations is in the realm of content quality control. AI algorithms are adept at monitoring video streams in real-time to detect issues such as signal degradation, audio disruptions, or unsynchronised subtitles. These systems can then automatically initiate corrective measures or alert human operators to intervene. This not only ensures a high-quality viewing experience but also reduces the workload on technical staff, allowing them to focus on more complex problems.

Operational anomalies, such as unexpected system failures or security breaches, can have severe repercussions for OTT platforms. AI-driven anomaly detection systems can monitor network and application activity continuously to identify patterns or actions that deviate from the norm. These systems can provide early warnings of potential issues, from hardware failures to cyberattacks, enabling proactive responses that minimise downtime and protect platform integrity.

Resource Allocation

Efficient resource allocation is vital for maintaining the cost-effectiveness and performance of OTT services. AI can automate the allocation of computational resources based on anticipated or forecasted demand, which is particularly useful for live events and new content releases that typically see spikes in viewer numbers. By predicting these spikes, AI systems can allocate additional resources in advance, thus ensuring a smooth streaming experience without manual intervention.

For OTT platforms that deal with vast libraries of on-demand content, AI can streamline the process of content archiving, indexing, and retrieval. AI algorithms can tag and categorize content automatically, making it easier to manage and retrieve. This not only speeds up the process of content delivery but also helps in managing storage efficiently, thereby reducing operational costs.

Integrating AI into the operations of OTT platforms presents a formidable opportunity to enhance the efficiency, reliability, and scalability of broadcasting services. These AI applications work behind the scenes, optimizing network performance, improving content quality, and ensuring that the infrastructure is robust enough to handle the demands of modern-day broadcasting. For companies like Globecast, which are already at the forefront of broadcasting technology, leveraging AI is a natural next step in evolving their service offerings, ensuring that they remain competitive in an industry where operational excellence is key to success. This strategic use of technology not only enhances operational capabilities but also sets a foundation for future innovations in the broadcasting sector.

Conclusion

Outsourcing the operations of OTT platforms to a specialised service provider like Globecast offers broadcasters and media companies a strategic advantage. This partnership allows platform owners to leverage decades of industry expertise, ensuring that their extraordinarily valuable broadcasts meet the highest standards of quality and reliability as well as the high expectations of subscribers.  For companies with roots grown deep in software engineering and IT environments, the concept of “let’s just do it the way we’ve always done it” is a trap that is unavoidable without a broadcast services provider in your corner. As the OTT landscape continues to evolve into VR, AR, HDR, and other content-driven experiences, the importance of working with a strategic outsourcing partner will only grow, proving essential for those looking to lead in the competitive world of platform-based OTT broadcast delivery.

Data OTT sportsbiz