Bitmovin identifies advertising, AI as major opportunities in 2024 video streaming

In a recent report by Bitmovin, the 2024 outlook for the video streaming industry appears geared towards growth despite the past year’s challenges. The seventh annual “Video Developer Report,” released on January 22, 2024, highlights key trends and forecasts in the sector.

The report identifies advertising as the primary growth opportunity for video developers, with 36% seeing it as the most significant area for expansion. This is reflected in the increasing adoption of advertising-based video on demand (AVOD) and free ad-supported streaming television (FAST) as monetization models.

Server-Side Ad Insertion technology has risen to 67% among respondents, while Client-Side ad insertion usage is 51%.

“After a challenging year, 2024 could see the video streaming industry have a renewed focus on growth, which is reflected in the jump advertising has made as the greatest opportunity for video developers, the fact AVOD is the top monetization model and the increased usage in advertising technologies. In 2024, it’s  essential that video streaming companies diversify their revenue streams by evolving their monetization models, and ad-based revenue models are clearly the most popular,” said Bitmovin’s Stefan Lederer.

“It’s clear that the industry has been constrained in making large advancements in sustainability and green streaming as a result of economic pressures. However, despite this, 30% of video developers and their businesses have still made it a key priority for their company, despite it meaning increased costs. As our industry sets its sights on growth and a more stable economy, the 40% that have previously been hyper-focused on their bottom line will be able to invest in prioritizing green streaming. There is great hope and the opportunity for innovation in this area in 2024.” 

Another notable trend is the rising interest in artificial intelligence (AI) and machine learning (ML) for content creation and enhancement, with 32% of video developers citing this as a key opportunity. Integrating AI tools like audio transcription and speech-to-text is expected to enhance customer experiences and engagement.

Despite economic pressures, sustainability remains a focus for the industry. A significant portion of video developers (40%) indicated their companies’ desire to prioritize green streaming practices, though cost considerations currently dominate decision-making. However, 30% of respondents still view sustainability as a key company priority, regardless of the associated costs.

Efforts to reduce the carbon footprint in streaming are centered on more efficient encoding methods and energy-efficient network technologies. Optimizing playback efficiency and leveraging cloud native services in regions with green power sources are also seen as viable strategies.

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Regarding codec evolution, the report shows a continued reliance on H.264/AVC and H.265/HEVC codecs in both live and video-on-demand (VOD) encoding. However, there is a growing interest in adopting the AV1 codec over the next 12-24 months, signaling potential innovation in this area.