4 Reasons Why Video Streaming Will Only Continue to Grow
Video streaming is already a massive industry. YouTube, the leading video-sharing service, boasts that 300 hours of video content is uploaded to their site every minute! And they are closing in on 5 billion video views each day. And that’s not to mention Facebook, Instagram, Snapchat, streaming services like Netflix, or news websites.
And the industry is positioned to get even larger. Here are the 4 main reasons why video streaming will only continue to grow as we look to 2020 and beyond.
Reason 1: More access to the internet
In 1995, approximately 16 million people had access to the internet. By 2005 that number had crossed 1 billion people for the first time — a 62x increase! And by 2015, it was up to 3.3 billion. This trend alone will create a surge in the amount of videos created and streamed.
People in emerging economies are skipping desktops and hard-wired connections although, and jumping straight to smartphones connected to cellular networks. This makes creating a video, uploading to a service like YouTube, and sharing content much easier.
In addition, we are seeing increase in internet speeds. In 1993, people connected to the world wide web via dial up, which was a 56-kilobit per second connection. Compare that to the gigabit internet offered by AT&T, Cox, and Google — today’s fastest connections have thousands of times more bandwidth that what was imagine just two decades ago.
Reason 2: People prefer video content
We are also seeing a trend where people are shifting from consuming text and photos into streaming videos, including a large amount of videos onto mobile phones in portrait orientation and with no sound.
According to a 2015 study, 55% of people watched videos online every day. We expect this number to be even higher today. A 2016 report found that Facebook serves more than 8 billion video views per day, and an amazing 85% were videos watched without any sound.
Because we have these brilliant smartphones with increasingly sharp displays, consuming video content becomes the preferred method. Especially videos with captions that viewers can use to follow along.
Reason 3: More options, lower costs
Another benefit is a sharp increase in the number of ways to consume videos. 15 years ago, none of the following platforms existed: YouTube, Facebook, Twitter, Instagram, and Snapchat.
Today we also see the rise of streaming services like Netflix and Hulu. Many of these options are either completely free to consumers or have free tier options. And as the industry matures, it becomes both cheaper to produce content but also to transcode, store, and distribute.
Companies like Videocoin are looking to accelerate this trend.
Today, data is served to consumers through a content delivery network (CDN). The CDN vendors operate a set number of servers that are spread across geographies. When your smartphone or laptop requests to view a particular website or file, the CDN connects you to the nearest server so you can quickly access your content.
But traditional CDNs require you to work with a single vendor and that vendor can only manage so many physical servers. Videocoin uses a decentralized approach: They incentivize people to rent bandwidth, compute, and storage resources on their devices in exchange for money. As a result, companies now have access to tens of thousands — or hundreds of thousands — of devices across the globe.
Innovative companies like Videocoin will continue to reduce video load times and the cost of streaming videos on the web.
Reason 4: Business and enterprise adoption
We are also seeing businesses and the enterprise rapidly adopt video in the workplace. According to Markets and Markets, the enterprise video market is “expected to grow from an estimated $16.34 billion in 2017 to $40.84 billion in 2022”, which represents a 20.1% compound annual growth rate.
The main reason for the rise, according to the report, is that video is being used increasingly as a communication and collaboration tool. As we see more collaboration across teams, departments, and different offices, video can provide a powerful tool to connect coworkers.
Further, not all enterprise video depends on live streams. Customer support can supplement frequently asked questions (FAQs) with recorded videos, and human resource professionals find that videos are effective tools for employee onboarding and ongoing training.
Video streaming is already the majority of data accessed on the internet, and we expect this trend to continue. We will watch this space closely, particularly as technology advances — faster internet speeds, higher resolution screens, and better methods of distributing videos — moves the industry forward.
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