Media Logistics Platform (MLP), a newly coined term by analyst firm Ovum to define the logistics software businesses that manage the processes of production, ingest, post-production and transfer of media and data will hit £400m by 2018.
Adrian Drury, Consulting Director & Practice Leader: IT, Media & Telecoms at Ovum, said: "Just as the Online Video Platform (OVP) market has seen rapid growth and an accelerated journey to maturity, so the MLP market is now set for growth as premium media companies look to solve the media management and logistic challenges that are today acting as an impediment to growth. In this study we look at the rapid uptake of this platform and predict massive growth across all territories for these services."
As cloud and file based-workflows become mainstream, MLPs are a vital service segment of the premium media market. With a current potential value of £100m across the core markets of Europe, North America, APAC, South America and Middle East and Africa, the total addressable market is set to quadruple in value over the next four years to be worth £400m by 2018.
As a response to disruptive threat of new media players such as Google, Amazon, Apple, Netflix and Spotify, many traditional media companies have created new personalised, multi-screen services. Consumers have embraced these new services and this is now core business to content owners. The media market is moving towards a model of mass personalisation and this has driven investment in developing platforms to deliver personalised media services, as well as creating a market segment of hosted platforms to deliver these services, labeled the Online Video Platform market (OVP).
However the growing maturity, audience volume and revenue yields from these multiscreen services is exposing failings of traditional systems and processes for media management and logistics and this is becoming a choke point for growth of multiscreen services as all parties in the media supply chain wrestle with the cost and complexity of format and platform fragmentation.
"Any premium media company who wants to continue to grow will need to get these services right. The core driver for growth will be the growth of multi-screen media end markets, the growing complexity of media management and the increasing maturity of technology and platform strategy at media companies," says Drury.