RECENT NEWS
TechCrunch  Sep 8  Comment 
 This has been my Summer of Video — several months when it became clear to me that we’ve reached an inflection point in the transition from linear TV to online video. Read More
TechCrunch  Aug 25  Comment 
 WeVideo has rebuilt its browser-based video editor using HTML5 instead of Flash. For many of you, the whole debate about HTML5 versus Flash may seem like a weird flashback to 2010. But Flash is taking a while to die completely — Google Chrome,...
MarketWatch  Aug 24  Comment 
Parents are loosening their children’s leashes and allowing them to roam free on YouTube as the online video streaming site grasps for young audiences.
Forbes  Aug 21  Comment 
The online video giant needs cash to fuel its anticipated massive growth.
TechCrunch  Aug 19  Comment 
 There’s more than one way to monetize your online video content. Sure, you can go the old-fashioned route, making ads and clicks and such. But just wait until your preferred platform opens a one-off storefront where you can peddle your wares...
TechCrunch  Aug 9  Comment 
 Over the past few years, BitTorrent has worked to move beyond its associations with online piracy by giving tools to musicians, filmmakers and other creators so they can distribute and market their work. Now the company’s taking that mission...
Forbes  Aug 2  Comment 
Vevo is one of the world's most popular destinations when it comes to music videos, and now some of the most popular acts are about to finally find a home there.
Benzinga  Aug 2  Comment 
Facebook Inc (NASDAQ: FB) introduced a new feature for its photo and video sharing social media property, Instagram called "Stories." Stories is a new feature that allows Instagram users to "share all the moments of your day, not just the ones...
Financial Times  Aug 2  Comment 
Streaming agreement comes as online video service shifts business model
Cloud Computing  Jul 29  Comment 
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g.,...




 
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