YouTube success to spawn $2bn video ASP boom

Broadband video ASPs are poised to cash in on the success of YouTube and others

The phenomenal success of YouTube and other video sharing services has spawned a new breed of application service provider, known as broadband video ASPs, that enable media firms and enterprises to put content online.

According to ABI Research, these emerging firms are set to cash in by offering publishing, syndication, commerce, content management, security and other platform components in the form of software-as-a-service.

The research firm expects the broadband video ASP market to reach a turnover of $1.9bn by 2011.

"Broadband video ASPs offer what are essentially white-label turnkey video platforms to media and enterprises, enabling them to create branded video destination sites," said ABI research director Michael Wolf.

"By offering these platforms, which can be sold in their entirety or as best-of-breed components, they allow their customers to get to market faster using a variety of monetisation models."

Companies such as Brightcove, NBBC, Entriq, Roo, Maven Networks and thePlatform (a division of Comcast) are identified by ABI as key competitors in this marketplace.

Because this market is in a nascent stage, ABI noted that business models vary widely, with some charging for usage and others offering revenue sharing for advertising and pay sites.

"Content management and publishing are table stakes in this business. The ability to deliver the best distribution and monetisation capabilities, either by interfacing with other distribution platforms or offering their own solutions, will be key to long-term survival," said Wolf.

"This ability will be a key factor in convincing customers to use their platforms rather than to build video platforms in-house."