Streaming platforms are spending anywhere from 9% to 30% of revenue just to run their tech stack and a new study finally puts real numbers behind the guesswork.
Don’t miss this special episode recorded on stage at Streaming Made Easy Live with Jonas Engwall (CEO of Bedrock Streaming), Bjarne Andreas Myklebust (NRK, Norway's public broadcaster), and Rowan de Pomerai (CEO of the DPP). They unpack the new Streaming Platform Ratio study benchmarking 16 European platforms against Netflix, why public broadcasters are outperforming commercial ones on tech efficiency, and the coming wave of premium vertical video.
Key Takeaways:
1. The Streaming Platform Ratio Benchmark
Bedrock and the DPP surveyed 16 mostly-European streaming platforms to measure tech spend as a percentage of streaming revenue, anonymizing all results. They used Netflix as the public baseline and its publicly disclosed tech and development spend comes out to roughly 10% of revenue, a figure that's held steady for the past five to six years.
Bedrock and the DPP surveyed 16 mostly-European streaming platforms to measure tech spend as a percentage of streaming revenue, anonymizing all results. They used Netflix as the public baseline and its publicly disclosed tech and development spend comes out to roughly 10% of revenue, a figure that's held steady for the past five to six years.
2. Scale Is the Biggest Cost Driver
Platforms with revenue above roughly $100 million showed nearly half the proportional tech cost of smaller platforms. Public broadcasters performed slightly better than commercial players overall because larger organizations benefit from fixed costs spread across more revenue.
Platforms with revenue above roughly $100 million showed nearly half the proportional tech cost of smaller platforms. Public broadcasters performed slightly better than commercial players overall because larger organizations benefit from fixed costs spread across more revenue.
3. Legacy Broadcasters Are Still Paying Two Bills
NRK reports that traditional DTT distribution still consumes about 90% of its budget, while OTT already accounts for 20-25% of consumption. Public broadcasters that started streaming early (echoing BBC's iPlayer) built in competitive advantages like NRK running three CDNs with annual price competition to control distribution costs.
NRK reports that traditional DTT distribution still consumes about 90% of its budget, while OTT already accounts for 20-25% of consumption. Public broadcasters that started streaming early (echoing BBC's iPlayer) built in competitive advantages like NRK running three CDNs with annual price competition to control distribution costs.
4. Buy, Don't Build
Panelists agreed that most platforms are shifting from CapEx to OpEx, buying software and licensing CDN capacity rather than building in-house infrastructure, since content is where broadcasters create value. The DPP noted that no broadcaster builds its own transmission towers or satellites either, so the same logic should extend to streaming infrastructure.
Panelists agreed that most platforms are shifting from CapEx to OpEx, buying software and licensing CDN capacity rather than building in-house infrastructure, since content is where broadcasters create value. The DPP noted that no broadcaster builds its own transmission towers or satellites either, so the same logic should extend to streaming infrastructure.
5. Premium Vertical Video Is the Next Wave
Bedrock has rolled out vertical video feeds across three of its four platforms, converting short-form teasers into long-form viewership and subscriptions. NRK is launching a vertical original microdrama series, "21 Days," aimed at younger audiences. European broadcasters are leading here by leaning into vertical.
Bedrock has rolled out vertical video feeds across three of its four platforms, converting short-form teasers into long-form viewership and subscriptions. NRK is launching a vertical original microdrama series, "21 Days," aimed at younger audiences. European broadcasters are leading here by leaning into vertical.
Thank you to Jonas Engwall, Rowan de Pomerai, and Bjarne Andreas Myklebust for coming on the pod!
Bedrock Streaming: https://fr.linkedin.com/company/bedrock-streaming?trk=public_profile_topcard-current-company
Jonas Engwall: https://fr.linkedin.com/in/jonas-engwall
Rowan de Pomerai: https://www.linkedin.com/in/rdepom/
Bjarne Andreas Myklebust: https://no.linkedin.com/in/bmyklebust
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Connect with us on Linkedin:
Evan Shapiro - https://www.linkedin.com/in/eshap-media-cartographer/
Marion Ranchet - https://www.linkedin.com/in/marionranchet/
The Media Odyssey Podcast - https://www.linkedin.com/company/the-media-odyssey-podcast
00:00 Live Show Kickoff
01:08 Why Measure Platform Spend
03:21 Streaming Platform Ratio Explained
05:01 Netflix as Baseline Benchmark
06:31 Public Broadcasters and OTT Transition
08:55 Scale Drives Lower Costs
10:12 What the Results Mean
13:20 Europe vs US and Chasing Scale
16:27 Next Steps and Benchmarking Goals
18:47 Build vs Buy and CapEx to OpEx
21:09 Vertical Video and Microdramas
25:10 Premium Vertical Wave in Europe
27:51 Wrap Up and Thanks
- (00:00) - Live Show Kickoff
- (01:08) - Why Measure Platform Spend
- (03:21) - Streaming Platform Ratio Explained
- (05:01) - Netflix as Baseline Benchmark
- (06:31) - Public Broadcasters and OTT Transition
- (08:55) - Scale Drives Lower Costs
- (10:12) - What the Results Mean
- (13:20) - Europe vs US and Chasing Scale
- (16:27) - Next Steps and Benchmarking Goals
- (18:47) - Build vs Buy and CapEx to OpEx
- (21:09) - Vertical Video and Microdramas
- (25:10) - Premium Vertical Wave in Europe
- (27:51) - Wrap Up and Thanks
