RECENT NEWS
TechCrunch  Jul 15  Comment 
 Airtime, the online video chat company from Sean Parker, is getting into the game watching segment after it added support for live-streaming service Twitch. Read More
TechCrunch  Jul 15  Comment 
 BitTorrent’s name may still be associated with piracy, but BitTorrent the company has been working to legitimize the peer-to-peer technology as a tool that can be used to distribute content in legal ways. Its products have over 170 million...
Forbes  Jul 13  Comment 
YouTube comedy and gaming channel Funhaus discusses being offensive, not taking offense, loving online video, and ultimately growing the brand to something bigger.
Financial Times  Jul 12  Comment 
Effective payment rate from online video site halves to $0.001 per stream in 2015
The Economic Times  Jul 12  Comment 
Among startup founders worldwide, failure and experience are two aspects that are given lot of weight. So what if the founder happens to be part of two successful startups?
Forbes  Jul 11  Comment 
Baidu started its online video business back in 2012 in an attempt to capture the shifting customer demand from television to online video streaming. Baidu’s online video business includes its iQiyi video platform, which has an extensive video...
New York Times  Jul 11  Comment 
Tronc, the rebranded Tribune Publishing, wants to offer 2,000 videos a day, up from about 200 now, and hands-off video production is central to that aim.
Forbes  Jul 8  Comment 
Rooster Teeth’s Burnie Burns and Gavin Free discuss the history of the Austin-based digital production company and the online video industry.
Forbes  Jun 28  Comment 
VidCon 2016 is over. Here are three important takeaways from the event and why they’re going to continue to impact the online video industry this year.
TechCrunch  Jun 24  Comment 
 Along with news that it’s preparing to introduce live streaming support in its main mobile application, YouTube also this week announced a series of new features for its creator community. The details, which include a new Creator Hub, better...




 
TOP CONTRIBUTORS

The explosive growth of Google's YouTube and video-sharing services such as BitTorrent has led to a dramatic increase in the amount of data traversing the internet -- Google CEO Eric Schmidt has pointed out that internet traffic generated by YouTube in 2006 was larger than all internet traffic combined in the year 2000.

There is room for further growth -- even with YouTube's success, less than 1% of video is delivered over the internet, as existing broadcast systems such as television dominate. But that could change.

It's unclear how online video will impact the telecommunications carriers (such as AT&T (T) and Verizon Communications (VZ)) that own the pipes that deliver video to the end user, or the content providers (such as CBS (CBS), Time Warner (TWX), and Viacom (VIA)) that create the video in the first place. Because of the breadth of video located all overy the web, Video search will be very important to users as well as for those working on Video advertising models.

One thing is clear, however -- online video requires massive amounts of bandwidth. A single 30-minute sitcom requires as much bandwidth as over two years of email messages for an average user.[1]

The bandwidth required for online video will require telecom companies to spend massive amounts of money on network upgrades to keep pace with the additional traffic.

Who are clear winners from the growth of online video?

Equipment Manufacturers

  • Cisco Systems (CSCO) and Juniper Networks (JNPR) together manufacture most of the routers that form the backbone of the internet. Their machines act as traffic cops on the digital highway, making sure that packets of data get to their appointed destinations. As internet traffic increases, carriers must buy more routers to handle the load.

Cacheing Companies for Quality of Service

  • Akamai Technologies (AKAM) and Level 3 Communications (LVLT) improve the reliability and speed of downloads by storing copies of files close to the user -- a process known as cacheing. High reliability and quality of service is particularly important for streaming video, as frequent interruptions create a bad user experience. Google's YouTube and other video sites make extensive use of Cacheing technology, and the demand for Akamai and Level 3 Communications' services is likely to increase if online video grows.

Who are clear losers from the growth of online video?

Companies who operate along the supply chain getting DVDs to viewers are clear losers from the rise of online video, as online video donwloads could cut them out as middlemen.

  • Blockbuster (BBI) stands to lose if online video goes mainsteam. If viewers can connect their TVs to the internet, who would rent a DVD if they can pay to stream it over the internet?
  • Netflix (NFLX)'s current business model is threatened if viewers can download movies over the internet. Who needs to wait two business days for a DVD when you can get it instantly? However, Netflix is moving aggressively into downloadable movies, and as such may be able to capture some of this new market.
  • Coinstar (CSTR) operates a network of DVD kiosks. They currently have a majority position in Redbox, as well as full ownership of DVDXpress. If online video grows, physical DVD rental sales will drop and the need for these kiosks will diminish.

References

  1. Assumes 30-minute sitcom requires 240MB, average person sends 15 emails a day with an average size of 18 KB
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki