The Right HDR Strategies Can Open Doors to Cost-Effective Competitive Differentiation Among Video Streaming Providers

Nick Mitchell, InterDigital

LAS VEGAS, NEVADA, UNITED STATES, January 9, 2024 /EINPresswire.com/ -- The highly competitive streaming video landscape is prompting executives in the over-the-top (OTT) video streaming market to explore features and capabilities that drive customer retention and greater audience engagement. High Dynamic Range (HDR) is a technology that falls into this category of emerging solutions as it gains more attention from consumers and the industry, according to Nick Mitchell, Media Solutions Consultant for InterDigital, in an interview for journalists.

HDR takes images streamed to end-user devices – such as TVs, tablets and mobile phones – to an entirely new level. Most mid-range and high-end viewing platforms support HDR. The technology elevates the consumer experience by allowing viewers to see brighter highlights, better contrast and deeper, more realistic colors. A rapidly growing number of new movies and episodic programs are being produced in HDR while major live sporting events are increasingly captured using HDR cameras.

The main challenge facing streaming providers is that SDR and HDR content are often commingled in their operations to support legacy content libraries and SDR advertising material.

"There has been a significant increase in the amount of HDR content now available for streaming. This is good news because HDR provides an undeniably enhanced viewing experience consumers have come to appreciate and expect," says Mitchell. “The trick for the streaming industry revolves around seamlessly integrating a wide array of SDR and HDR content and delivering the best possible experience to the installed base of devices that only support SDR while simultaneously addressing the rapidly growing HDR market.”

Meeting this expectation in a technically efficient and cost-effective manner is becoming increasingly important as OTT providers ramp up subscription costs and others pursue ad-supported business models. HDR, says Mitchell, will play a significant role in helping consumers justify increased subscription costs or support consumers' willingness to tolerate commercial interruptions. One key to elevating the attractiveness of commercial supported business models will be to deliver advertising content in high quality HDR.

Setting the Stage for the HDR Streaming Era

After a pandemic-fueled spurt of growth that brought over 215 million viewers to video streaming services in 2021, providers have struggled to hold onto their base as the overall market contracted to approximately 203 million in 2022, according to analysts at Statista. While demand appears to be slowly rebounding, analysts do not expect the market to recapture its 2021 highs until 2026 or early 2027.

"As a result, the video streaming service provider market is among the most competitive entertainment technology segments, prompting leaders to seek ways to control costs while introducing new compelling viewing experiences," he explains.

It is in this context that a technologically sophisticated approach to delivering HDR while streaming content to the still-large installed base of standard-dynamic range (SDR) devices is emerging as a compelling solution for video streaming providers.

"When consumers see HDR content, they simply can't deny that what they are looking at is better," says Mitchell. "At a time when streaming service providers are beginning to raise subscription prices or explore ad-supported business models, meeting consumer expectations for high-quality services must be a priority."

Strategies for Meeting Demand for HDR

Two key questions facing the video streaming market revolve around effectively delivering HDR to consumers while supporting the significant presence of SDR-only devices still in the market and leveraging legacy libraries of SDR content.

"Even though HDR has become a baseline requirement for content creators and consumers, many video streaming providers must determine what to do with their legacy SDR content while ensuring that they serve viewers the best possible picture quality regardless of whether their devices support HDR or SDR. Given the contraction that occurred from 2021 to 2022, every subscriber counts. Leaders in the sector must, therefore, create a roadmap that develops the full potential of HDR while serving all current viewers," he says.

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Airrion Andrews
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