Market Insight

Into the fray: Verimatrix sustains its diversification effort

April 06, 2018  | Subscribers Only

Merrick Kingston Merrick Kingston Associate Director, Research & Analysis, Digital Media & Video Technology
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Verimatrix continues to enhance its analytics portfolio by imbuing the Verspective Intelligence product with a broader set of business intelligence functions, and standardized, off-the-shelf reporting dashboards. Verspective Intelligence’s development, while fundamentally iterative, remains testament to the security firm’s commitment to diversification, and the pursuit of analytics-related opportunities.

Our analysis

While Verimatrix’s analytics proposition remains focused on securely collecting, storing, and surfacing QoS and QoE data, the firm’s pivot toward consumption analytics is a natural outgrowth of its mid-2017 Mirimon acquisition.

Mirimon – a technology stack belonging previously to Genius Digital – is designed specifically to help services providers to harvest consumption data from managed and unmanaged CPE. It is unsurprising that technology relating to the aggregation of consumption data has given rise to a new ensemble of audience measurement tools and dashboards within Verspective Intelligence.

More interesting is what Verspective Intelligence’s development tells us about the video software industry’s trajectory. Verimatrix is far from alone in its pursuit of new, analytics-derived revenue streams. Over the past two years, virtually every video technology firm whose software resides on an end-user device has launched an analytics product; content security, content discovery, 2nd screen, and UI specialists alike have all jumped into the fray.

Value unquestionably resides in the analytics segment; we currently expect the data, audience measurement, and audience segmentation market to grow from USD 1.02bn in 2018 to 1.6bn in 2022. While many video technology companies are eager to secure a fraction of this revenue pool, the concentration of audience-measurement product launches raises competitive differentiation issues.  

We do not believe that dashboard and static measurement products comprise a source of sustainable, long-term value creation. We maintain that data-derived revenues will hinge upon firms’ ability to augment their measurement products with sophisticated logic, predictive tools, and machine-learning technologies. 

 

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