Traditional media companies are caught in a spending trap, with costs of video delivery getting out of control. Spurred by competition from digital OTT players, not only have content costs ramped up, but non- content costs are rising as well, in a lot of cases, growing faster than revenue. In fact, if nothing is done, these non-content costs are expected to increase to unsustainable levels.
So what are these non-content costs about? They are for a large part related to video delivery becoming inreasingly complex. The time and effort it takes to manage incidents, analyze root causes of failures and make changes to improve service quality is reaching unsustainable levels. Because of this complexity, video delivery operations today clearly see a direct correlation between the number of incidents (tickets), changes, customer satisfaction, operational costs, and revenue. When changes take place, the number of incidents increases, in turn having a negative impact on customer satisfaction, revenue (churn) and operational costs.