The next generation of live video driven by ultra-low-latency streaming and interactive video layers.
Studies focused on television subscription trends all reveal a similar result: the number of TV subscribers is on the decline. In 2018, this number dropped from 73% to 67%, but online video consumption increased in the subsequent year. Netflix’s over-the-top (OTT) solution (76%) surpassed cable and satellite subscriptions for the first time in 2018. These days, every new (major) OTT streaming service is accelerating the decline of paid TV subscriptions, while increasing overall video consumption at the same time.
The question is not if traditional cable television consumption is coming to an end — the question is when. So… if the end of traditional video consumption is essentially set in stone, what’s next?
Breakthroughs
The answer to this question lies in modern technological breakthroughs. New and innovative concepts are changing the way viewers consume video, creating an experience that is quicker, more interactive, and free of geographical limitations. To understand what’s in our future, we need to start by looking at recent technological developments
Second Screen Interaction
Traditionally, television has been regarded as a passive medium. People sit on the couch, watch, and listen. With the introduction of social media and especially Twitter, viewers suddenly gained access to a second screen, allowing them to interact with other viewers in real time. More than 70% of US adults currently use a “Second Screen” while watching TV.
At Ex Machina Group, we took the Second Screen experience to the next level by creating applications that moved beyond the limitations of Twitter’s text-based interactions. Our Second Screen apps have helped millions of concurrent viewers become part of the (game)show they’re watching via compelling visual interactions.
What Do I Know a fast-paced second screen quiz
Over-the-top technology
An increase in internet speeds and a corresponding decrease in costs cleared the path for over-the-top technology (OTT), allowing users to have video content delivered to their connected devices. With OTT, creators are able to connect directly to their end users, bypassing major broadcasters for both live video and on-demand content.
SVOD (Subscription Video-on-Demand) solutions like Netflix, Apple TV, and Disney+ are mostly limited to pre-recorded video, allowing viewers to watch their favourite shows wherever and whenever they want.
Solutions like Twitch, Facebook Live, and YouTube Live are equipped with easy-to-use tools that bring live streaming capabilities to the masses. In 2017, 48% of US internet users watched at least one live streaming event per week, and users in the 18–24 age group spent an average of 29 minutes per day watching SVOD content in 2018. Providers like Twitch report that their users spend an average of 95 minutes per day watching live gaming.
Ultra-Low Latency Live Streaming
Latency has always been a challenge for live streaming events. The largest streaming platforms — like Twitch, Facebook Live, and YouTube Live — have nearly achieved a latency identical to Cable TV (7–10 seconds), but they still struggle with stable/scalable ultra-low latency.
New technologies like Web-RTC and CMAF (check out this video to learn more) deliver a stable and scalable ultra-low latency live stream to the end users. We are still in the early stages of the ultra-low latency “Hype Cycle,” and it’s not yet clear which technology will come out on top, but we can be sure it’s here to stay. At Livery (Ex Machina Group), we have adopted both Web-RTC and CMAF so we can provide synced low-latency live streaming solutions (0.2–3 seconds) for all possible platforms.
Mobile Internet
Streaming video on a mobile device has become commonplace and increasingly reliable over time. With the introduction of 4G (and 5G to come), users are no longer bound to a WiFi connection — and with smartphone market penetration at 90% (US 2018), 294 M American users have the ability to consume video no matter where they are. As a result, video consumption on mobile devices for the 18–34 age group was 5.47 hours per week in 2018.
The combination of innovation
The technologies discussed above (second screen Interaction, over-the-top technology, ultra-low latency live streaming, and mobile internet) are the foundational elements of new and innovative video concepts.
Entertainment — Participating in a live game show on mobile
HQ Trivia, originally launched in the US in 2017, is a great example of an interactive mobile application that allows users to participate in daily live shows. Its low-latency technology lets the host interact in real time with 2.4 million concurrent players as user stats and answers are piped back to the host live during the show.
HQ Trivia and its 12.8 million downloads have inspired many organizations to adopt the live trivia concept for their own use cases, such as e-learning, e-commerce, and betting. Livery helps organizations develop their own HQ-like concept thanks to our proprietary Livery Interactive solution. If you are thinking of building your interactive streaming platform, we can recommend the following article; “Things to consider when building a large-scale interactive live streaming platform”.
eCommerce — Shopping while watching video content
With so many people consuming video content on connected devices, a whole new e-commerce concept has emerged: “Shoppable Video” is an exciting mix of entertainment and e-commerce, backed by impressive stats. For example, 60% of YouTube viewers say they have been inspired to make a purchase thanks to online videos, and 68% of viewers use videos to make purchase decisions. The use of an interactive layer merged with the video content allows viewers to buy products or services without ever having to leave the stream.
Low-latency video takes shoppable video to the next level: this technology lets the host interact with viewers directly and in real-time, allowing for auction-style events or limited edition sales where the available units are displayed live during the video stream. The latest advancements in technology have reduced the startup costs of shoppable video, leading to a large-scale adoption in especially the Asian markets. See the following article for more information.
E-Sports — Be in control of the camera
In 2018, approximately 380 million viewers watched esports streams. This number is expected to grow to roughly 557 million viewers by 2021. About 44% of these viewers see themselves as “esports enthusiasts.”
In almost all cases, the person in control of directing the cameras determines what the viewers see. Now, the combination of ultra-low latency and a frame accurate stream syncing solution allows the viewer to change their viewing angle at any given moment. They can switch from one camera to another using the interactive layer of the video player in less than a second, while remaining perfectly in sync with the broadcast.
The concepts above are based on recent developments and paint a picture of how video will be consumed in the near future. With every technological breakthrough that hits the market, new opportunities are simultaneously being created and shaping the direction of the industry.
If you are interested in our products and services, please don’t hesitate to get in touch. At Livery we provide everything you need to launch your very own interactive ultra-low latency video solution, including concept creation, business model, front-end design, back-end development, and operations. Check out our website to get inspired by our portfolio and client list. You can also contact me directly on LinkedIn.
