I am new to wayland and developing a wayland client application that play videos. The problem I have is that the compositor goes to standby after the idle-time even-though the video is playing.
Is there anyway to tell the compositor that application is active and it should not go to standby?
Your question doesn't specify which compositor you are using. Assuming you are using weston compositor there is a api weston_compositor_wake(compositor) which will emit wake up signal if compositor goes to sleep mode. If you are using some other compositor please check analogous signal which serves the same purpose.
