RECENT NEWS
TechCrunch  3 hrs ago  Comment 
 BitTorrent is today taking one more step ahead in its bid to create a revenue-generating business out of its peer-to-peer file-sharing network. Sync, the desktop and mobile file synchronising service that BitTorrent presents as an alternative...
Wall Street Journal  Feb 23  Comment 
Major League Baseball’s digital arm is parlaying its expertise in online video to help a growing number of media outlets, including HBO, stream directly to consumers. A partial spinoff is being considered.
Yahoo  Feb 19  Comment 
Google said in November the subscription for the ad-free service will start at $7.99 per month and will allow users to watch videos offline and listen to music while other apps are working. The plan would represent a significant change for the...
Clusterstock  Feb 18  Comment 
(Reuters) - Google Inc is set to launch a subscription model for YouTube in a few months, CNBC quoted Robert Kyncl, the online video service's head of content and business operations as saying at the Code/Media conference. The company was...
TechCrunch  Feb 16  Comment 
 Mobile video has been growing steadily for years but it is now close to justifying the hype that it generated throughout the years. Mobile video ad spend in the US more than doubled from 2013 ($720 million) to 2014 ($1.5 billion) and will reach...
NPR  Feb 14  Comment 
The Arrested Development actor makes his directorial debut with the film Hits, which explores how easy it is to become famous in our celebrity-obsessed culture.
TechCrunch  Feb 12  Comment 
 Just three days after launching a $42 million fund, Line has announced its first investment. LINE Life Global Gateway Fund is putting an undisclosed amount of money into 3Minute, a Japanese online video production startup. Read More
Reuters  Feb 12  Comment 
Baidu Inc, owner of China's dominant search engine, said revenue growth for its online video service iQiyi more than doubled in the fourth quarter and for the whole of 2014.
TechCrunch  Feb 11  Comment 
 Last November, BitTorrent made a move into Netflix and Amazon territory with the news that it would be releasing its first original piece of video content, Children of the Machine. Today, the peer-to-peer networking platform, which has 170...
Wall Street Journal  Feb 11  Comment 
Target is pulling the plug on its online video rental service Target Ticket, ending a venture the discounter had launched as it worked to keep up with rival Amazon.




 
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