Bitmovin's latest Video Developer Report indicates an increasing role of AI, the slow adoption of next-generation codecs, and continuing challenges when it comes to ad insertion. It also demonstrates a disconnect between sustainability efforts and cost implications.
Key Challenges and Opportunities from the Report
This year's Video Developer Report saw advertising (15%) remain the top opportunity for innovation. However, ad insertion also remained the top challenge, cited by 38% of respondents. The research also showed that the number of respondents using the advertising/AVOD business model has grown to 69%, up from 56%. Additionally, the number of respondents using the FAST business model is 46%, up from 39%.
Regarding advertising technologies, Client-Side Ad Insertion just merged as the top choice, cited by 64% of respondents. Server-Side Ad Insertion is a close second and used by 63% of respondents. Dynamic Ad Insertion was the third favorite (25%) and Server-Guided Ad Insertion was fourth (21%).
The second biggest challenge for respondents remains controlling costs (31%) which reflects the ongoing macroeconomic conditions; the third challenge is playback on all devices (29%).
Since our first report in 2017, the streaming industry has undergone a massive transformation. This year's findings show the industry's continued focus on being able to monetize content effectively to support growth, said Stefan Lederer, CEO and co-founder of Bitmovin, However, the fact that ad insertion is the top challenge for the industry reflects the ongoing technical challenges with ad insertion. The industry needs to solve them if it wants to maximize the benefits of ad-based revenue models.
A Mixed Response to Machine Learning (ML) and Artificial Intelligence (AI)
ML and AI is the driving force behind a number of innovations in the media and entertainment technology industry. Almost a third (28%) stated that audio transcription and speech-to-text are where they will be using AI tools to improve customer experiences. This is followed by tagging and categorizing video (13%) and personalization (8%). However, the number of respondents saying they have no plans to use ML and AI is 9%, up from 6%.
Sustainability vs. Cost Pressures
The findings from the Video Developer Report present a clear tension between company's understanding of the importance of sustainability and economic realities. 70% of respondents indicated that sustainability is not a business priority due to cost concerns, this is up from 40%. On the other hand, almost a third of respondents (28%) said that sustainability is a high priority even if it means paying a little more, while 2% stated green streaming a top priority, regardless of costs compared to 6% previously.
Stefan Lederer added: ML and AI, and sustainability have been huge topics in video streaming over the past couple of years. However, while ML and AI has translated into innovations and adoption, sustainability seems to be falling down the industry's agenda. It's disappointing, but it also reflects the economic landscape we're operating in where companies are focusing on topics like monetization and ML and AI, which they believe will positively impact their bottom line.
Slow but Steady Adoption of Next-Gen Codecs
H.264/AVC remains the dominant codec (80%), followed by H.265/HEVC (49%), and VP9 (13%) and AV1 (13%). AV1 is the top codec for planned adoption in the coming 12 months (32%) but the findings reflect there's a general lag between the industry's plans and the implementation.
The 8th edition of the annual Video Developer Report provides a comprehensive snapshot of the current state of video streaming, based on data collected from video developers and industry professionals across 34 countries. It offers valuable insights for broadcasters, OTT platforms, and media organizations seeking to stay ahead of industry trends.
The full Bitmovin Video Developer Report 2025 is now available for download.
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Bitmovin's latest Video Developer Report indicates an increasing role of AI, the slow adoption of next-generation codecs, and continuing challenges when it comes to ad insertion. It also demonstrates a disconnect between sustainability efforts and cost implications.
