Can SPOTi Take on Flash & Silverlight for Adaptive Streaming?

There’s a SPOTinew entrant in the video delivery business, a Madrid-based company called SPOTi that’s focused on tackling the management and distribution of high-quality, adaptive bitrate video streams to multiple platforms and devices. The main advantage of using SPOTi’s software, according to CEO Thierry Scelles, is the ability to lower costs for publishers against current streaming and progressive download technologies. By adapting to the bandwidth available to the end user, SPOTi can deliver the highest-quality stream while ensuring that customers aren’t paying for more bandwidth than they need.

The startup isn’t the only company offering this type of technology, of course; both Adobe (s ADBE) and Microsoft (s MSFT) have their own adaptive bitrate solutions. So what’s the advantage of using SPOTi, as opposed to the established players? For one thing, the startup says its adaptive bitrate technology is capable of working with the largest number of users.

On the Microsoft side, that’s because its Silverlight plugin still lacks wide-scale adoption. And while Adobe has had more success with the pervasiveness of its player plugin, the company is still rolling out updates for the latest version of its player software — Flash 10 — which supports adaptive bitrate streaming with Flash Media Server 3.5. SPOTi, on the other hand, works with Flash version 8 and up, meaning its technology can reach a much wider base.

SPOTi has two implementations of its product: a software-as-service solution for companies that don’t have their own distribution platform, and a hosted solution for companies that do have their own infrastructure for video asset management.

With its hosted solution, SPOTi targets small- and medium-sized businesses, and acts like any other white-label video management solution, offering transcoding and delivery to multiple destinations and devices, storage, monetization, and reporting and analytics tools. In the hosted model, SPOTi charges a per-GB fee for delivery of video only.

The company also offers on-site deployment of its software, for which the customer pays a license fee based on the number of concurrent streams it delivers. The on-site product is being pitched at major ISPs, enterprises and media companies that wish to use their existing infrastructure for delivery.

So far, SPOTi hasn’t named any customers, but says it’s mainly working with advertisers in the auto and film industries. (You can see one example of its video quality in action here.)