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Can IBM’s Partnership with IRIS.TV Boost Its AI Business?

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Sep. 19 2018, Updated 8:00 a.m. ET

About the partnership

IBM’s (IBM) Watson AI is looking to expand its business platform by combining its service with various partners to deliver the best performance to its customers. On September 12, IBM and IRIS.TV teamed up to introduce Video Recommendations, which allows a customization of AI-based video content to end users.

The new service will help media and online video streaming companies understand their customers’ tastes and preferences, thus increasing viewer engagement and duration with videos. Higher viewership may also help media companies generate higher advertisement revenues. It may also save costs by bringing the right content to target audiences. The partnership will help media companies offer appropriate video programming recommendations so viewers can select the best content.

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Supporting Watson AI platform growth

IRIS.TV, which deals in cloud-based personalized video programming technology, has offered services to many large media brands, including Fox (FOXA), USA Today, and CBS (CBS). So teaming up with these companies may give more exposure to IBM’s AI platform. Its AI technology integrated with machine learning capabilities provides one of the best analyses in the industry.

The higher proliferation of smartphones and faster Internet services have led to a huge demand for video streaming services. Digital advertising spending is anticipated to hit $130 billion by 2021, thus creating a huge opportunity for media players. So AI technology is quite important to tap the existing opportunity since it provides a way for media companies to target their audiences.

From the graph above, you can see the revenue trend for IBM’s analytics business in the last five quarters. During that period, it maintained a CAGR (compound annual growth rate) of 1.4%.

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