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The Bitmovin Video Developer Report is an essential resource for anyone involved in video streaming technology. Conducted between September and December 2024, this 8th annual edition gathered insights from 167 video developers and industry experts across 34 countries. The majority of respondents were from EMEA (48%) and North America (36%), reflecting the primary markets driving streaming technology. Participants ranged from developers and engineers to technical managers and executives, ensuring a comprehensive view of the industry’s challenges and priorities.
I download this report every year because it provides reliable, objective data that I frequently use in articles, presentations, and tutorials. It’s a trusted source of industry insight that helps contextualize trends and benchmark technology adoption. You can download the full report from Bitmovin’s website.
Contents
Biggest Challenges
This review will focus on three key areas from the Bitmovin Video Developer Report: the biggest challenges facing video streaming technology, codec usage trends, and the adoption of per-title encoding.
This review will focus on three key areas from the Bitmovin Video Developer Report: the biggest challenges facing video streaming technology, codec usage trends, and the adoption of per-title encoding.
According to this year’s report, the three biggest challenges in video technology are ad insertion, controlling costs, and playback on all devices. The top concern reflects the rapid growth of the AVOD and FAST business models, where effective ad integration is critical for monetization. FAST, in particular, has grown steadily, increasing from 26% in 2022 to 39% in 2023 and 46% in 2024. As platforms increasingly rely on ad-supported models, delivering seamless ad experiences without compromising playback quality has become a significant technical challenge.
31.7% of respondents cited controlling costs, including bandwidth and storage. This shows a continued emphasis on sustainable profitability as platforms look to optimize operational expenses in a competitive market. Playback on all devices remains a significant challenge, with 29.3% of respondents listing it among their top concerns.
The Three-Year Perspective
Looking back at the previous two years, ad insertion, controlling costs, and playback on all devices have consistently ranked among the top challenges, but their relative importance has shifted as business models and economic pressures have evolved. In 2022, controlling costs was the top concern, driven by post-pandemic market corrections and rising operational expenses. Ad insertion was in third place, reflecting early experimentation with AVOD and FAST models. Playback on all devices was a significant issue but ranked slightly lower as platforms were still expanding their device ecosystems.
By 2023, ad insertion moved to the top spot as AVOD and FAST gained traction. Controlling costs remained high, reflecting ongoing financial pressures, while playback on all devices climbed back up due to the growing complexity of supporting a fragmented device landscape. In 2024, these three challenges remain at the top, but ad insertion is now the most pressing issue due to the mainstream adoption of ad-supported models.
Questions Raised:
- Why is video quality no longer a top concern? Is it truly “good enough” for viewers, or are other challenges simply more urgent?
- Will the focus on ad insertion continue to grow as AVOD and FAST models dominate, or will new challenges emerge as the market matures?
- Is the industry’s strategic recalibration a temporary response to economic pressures, or a long-term shift towards sustainable growth?
Codec Usage
When reviewing the codec-related data, remember that respondents come from across the streaming ecosystem and are not solely video publishers. For this reason, the numbers reflect industry readiness rather than actual deployment by publishers. The report does not distinguish between publisher usage and infrastructure support, which affects the interpretation of multi-codec strategies.
The Report shows that H.264 remains the most widely used codec, with 79% usage, though it’s hard to imagine which publishers or infrastructure products don’t support it. HEVC follows at 49%, delivering better compression with relatively wide device support. AV1 shows the highest planned adoption among next-generation codecs but remains stagnant in deployment. VVC is used by 6% of respondents, with cautious interest but limited adoption. LCEVC maintains niche interest, offering incremental efficiency gains without requiring new hardware.
The data does not clearly indicate widespread multi-codec encoding, as the dominant focus remains on H.264 and HEVC. Interest in AV1 and VVC is high, but actual deployment appears limited, particularly among publishers. The few companies widely known to use AV1, such as YouTube, Meta, and Netflix, are not necessarily represented in this report.
Three-Year Perspective
In 2022, H.264 and HEVC dominated, while AV1 showed strong sentiment, and VVC was emerging. In 2023, AV1 maintained interest but limited adoption. VVC showed slight growth but remained in early stages, and LCEVC continued to fill niche needs.
In 2024, AV1 remains stagnant, likely limited by hardware constraints, while VVC faces similar challenges. H.264 and HEVC continue to dominate, reflecting the ongoing emphasis on compatibility and the reluctance to replace technologies that are working, even if not optimal.
Again, respondents aren’t just publishers; they represent infrastructure providers and the broader ecosystem. Actual publisher usage usually comes last, once transcoding reaches commodity pricing and player support achieves critical mass. Given this, it’s hard to predict that any codec other than H.264 or HEVC will achieve significant publisher adoption in the next few years.
That said, it’s important to remember that YouTube, Meta, and Netflix are all significant users of AV1 (and VP9). Their relative scale provides the economic incentive to deploy AV1, and they have the staffing to test and deploy while maintaining excellent quality of experience. The same might be true of VVC deployments by Chinese companies, who are typically close-mouthed about their technology choices.
Questions Raised:
- Will hardware support for AV1 and VVC improve fast enough to justify planned adoption, or will software playback save the day?
- Will LCEVC’s niche role expand as platforms seek incremental efficiency gains without hardware upgrades?
Per-Title Encoding
The Report shows that 25.5% of respondents are currently using content-aware encoding, including per-title encoding, with another 36.7% planning to implement it within the next 12 months. However, 37.8% of respondents have no plans to adopt per-title encoding, reflecting a divide in the industry.
As you probably know, per-title encoding offers significant bitrate savings by optimizing encoding parameters for each piece of content, resulting in cost efficiency without sacrificing quality. Despite its potential, adoption has been slower than expected, likely due to cost constraints, resource limitations, or a lack of perceived ROI.
Three-Year Perspective
In 2022, per-title encoding was gaining traction, with over one-third of respondents using it and another one-third planning to implement it. It was seen as an effective way to balance quality and cost efficiency. In 2023, adoption plateaued, perhaps due to economic pressures that led companies to defer investment in optimization technologies.
In 2024, adoption is growing but slower than anticipated. The high percentage of respondents not considering per-title encoding suggests that cost constraints and resource limitations remain significant barriers. However, with 36.7% planning to implement it within the next year, per-title encoding remains the most straightforward way to achieve significant bitrate savings without requiring extensive testing or workflow disruption.
Questions Raised:
- Will economic pressures continue to slow adoption, or will cost efficiency drive greater implementation?
- Is the lack of perceived ROI due to the technology itself, or are cost constraints preventing companies from realizing its potential?
- Will broader adoption of per-title encoding influence the balance between quality and cost efficiency?
What This All Means
The data paints a picture of an industry focused on incremental gains rather than explosive growth. The emphasis is on monetization, cost control, and maintaining compatibility rather than investing in transformative technologies.
The cautious approach to per-title encoding, limited adoption of next-gen codecs, and continued reliance on H.264 and HEVC suggest that the industry is more focused on optimizing existing workflows than pioneering new ones. Rather than expanding the market, streaming platforms are fighting for market share, reflecting a more mature and competitive landscape.
Unlike previous cycles, such as the transition to 4K and HDR, there is no game-changing technology driving the next wave of growth. The strategic priorities highlighted in the report—ad insertion, cost control, and device compatibility—show a shift toward profitability and reach, not innovation.
This is a clear sign that the streaming industry has moved into a phase of incremental growth. Companies are playing it safe, maximizing reach and revenue while minimizing costs. In a market where the pie is no longer expanding rapidly, the focus has shifted from bold technological leaps to careful strategic moves.
The industry isn’t retreating—it’s recalibrating. In this phase of strategic patience, companies are hedging their bets, prioritizing compatibility and cost efficiency while waiting for the next wave of transformative technology. Until then, the land of the incremental is where streaming will remain.
Key Takeaway:
In addition to the challenges, codecs, and per-title encoding statistics, the report covers a wide range of other topics, including AI and machine learning, sustainability, content protection, monetization models, and video analytics. It provides an unparalleled snapshot of the streaming industry’s current state, making it a must-read for any video technology professional.
The Bitmovin Video Developer Report remains a vital resource, reflecting the streaming industry’s strategic recalibration from high-growth to sustainable profitability. It highlights a cautious but pragmatic approach to technology adoption and monetization, shaped by economic pressures and evolving viewer behaviors.
The biggest opportunity lies in per-title encoding for cost savings and multi-codec strategies to balance compatibility and innovation. However, the industry’s cautiousness around new codecs and optimization tech reflects a strategic patience—waiting for clearer ROI before making bold moves.
Recommendation: Download the report ASAP to stay ahead of industry trends, challenges, and strategic shifts. The 2024 edition is particularly insightful for understanding the delicate balance of profitability, cost control, and innovation shaping the future of streaming.
