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Summary

Ovum's 2017/18 ICT Enterprise Insights survey revealed that building a highly personalized multiscreen video service experience is the top business priority for more than a quarter (27%) of premium content owners in the next 18 months. Historically, in the first wave of personalization ("personalization 1.0"), premium content owners leveraged recommendation engines to offer tailored content services on multiple platforms and devices. As these enterprises move toward the second wave of personalization ("personalization 2.0"), tailored content services have become insufficient to meet changing business and audience needs. There's now a need to provide a customized real-time user experience, advertising, and lifecycle engagement, to not only enhance average revenue per user (ARPU) but also safeguard profitability. In April 2018, Kaltura and Massive Interactive entered a strategic partnership to launch the "Targeted TV" solution to support the cost-effective migration of premium content owners from personalization 1.0 to 2.0.

Creating a personalized ecosystem for individual users is a highly complex and capital-intensive process that can increase total cost of ownership (TCO) for premium content owners in the long run. Targeted TV, with its multifaceted data aggregation and synthesis capabilities, will enable broadcasters and digital service providers to not only enhance clustered personalization but also explore new monetization avenues based on content and advertising.

"Personalization 2.0" capabilities are crucial to strengthen market share

Historically, Kaltura has had a strong market hold in the enterprise video space. In the past couple of years, the company has been strengthening its market positioning in the premium content owner segment, with an emphasis on digital service providers (DSPs). It has acquired close to 125 customers in the media and entertainment segment, with tier-1 reference brands such as Vodafone in the DSP space. As DSPs increase their spend on live streaming to improve customer engagement and reduce churn, cloud TV and video platforms such as Kaltura are building their personalization competencies, offering premium content owners the following:

  • real-time customization of UX/UI to improve user lifecycle engagement and conversion rates

  • flexible pricing to help improve user loyalty and win new customers

  • ease of design architecture configuration for individual users through flexible plug-ins for editorial and multiplatform application development workgroups, resulting in lower overall TCO

  • just-in-time, hyper-contextual advertising across multiple devices and screens, enabling higher average revenue per advertiser (ARPA)

  • streamlined EPG and workgroup collaboration workflows to improve operational productivity

  • support for next-generation monetization avenues around UX/UI.

In the past 12 months, Kaltura's technology roadmap has moved toward building robust engagement (UX) capabilities for both its core and non-core video businesses. It has followed a partner-enabled UX functionality enhancement strategy. In the enterprise video space, Kaltura joined forces with Rapt in March 2017, and its partnership with Massive Interactive followed in April 2018. The Targeted TV solution will leverage Kaltura's end-to-end cloud TV and video capabilities (including content and metadata management, multi-DRM, mobile integration, language support, and analytics) and Massive's Axis UX personalization functionalities and cognitive services (AI) framework to deliver converged user lifecycle engagement on a real-time basis. The solution bridges the gap between multiscreen video service provider and digital user by leveraging dynamic behavioral data science algorithms to deliver a highly tailored experience at multiple touch points across the audience engagement journey.

As premium content owners embark on the "personalization 2.0" journey, Ovum believes that Kaltura and Massive are well positioned to reduce the complexities of real-time UX customization for digital users on multiple screens, increasing ARPU and ARPA for tomorrow's digital-first companies. The partnership will also facilitate the development of value-for-money new monetization avenues such as sponsored UX/UI.

Appendix

Author

Kedar Mohite, Principal Consultant, Media & Broadcast Technology Services

kedar.mohite@ovum.com

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