Streaming Media Giants are Crushing Online Video Delivery

STREAMING MEDIA GIANTS ARE CRUSHING ONLINE VIDEO DELIVERY THE EVOLUTION OF STREAMING VIDEO DELIVERY 2005 2007 2008 2009 2010 2012 2013 2014 2014 YOUTUBE NETFLIX HULU TV EVERYWHERE APPLE TV is introduced by SUPER BOWL MLB.COM AT BAT, AMAZON FIRE TV TWI TCH is streamed live by NBC for the first time is unveiled to let introduces VOD over Internet the first app to stream live video, is launches to let launches for second generation ships with the capability to stream media is ranked as public access viewers stream users create and share videos online Time Warner to downloaded a record shows on their TVs the #1 live provide video on demand and live streaming of channels 10 million times online video streaming site in the U.S. rather than sync THE ONLINE VIDEO PROBLEM: THE QUEST FOR QUALITY DEMAND FOR PREMIUM AND BROADCAST CONTENT ONLINE IS SKYROCKETING -50 TBPS ONLINE MEDIA TRAFFIC >10 TBPS 2.6 TBPS 1 TBPS 2006 2009 2012 2015 85.1% OF THE U.S. INTERNET AUDIENCE 183.8 MILLION AMERICANS WATCHED 48.7 BILLION ONLINE VIDEOS IN JANUARY 2014 VIEWED ONLINE VIDEO IN JANUARY 2014 U.S. CONSUMERS WILL BUY 330 MILLION CONNECTED TV DEVICES (INCLUDING STREAMING PLAYERS, SMART TVS AND VIDEO GAME CONSOLES) ANNUALLY BY 2017–NEARLY DOUBLE THE UNITS SHIPPED IN 2013 MORE BROADCASTS ARE MOVING TOWARD LIVE STREAMING TOP 10 U.S. Live Online Video Streaming Sites BY PERCENTAGE OF OVERALL LIVE ONLINE VIDEO VOLUME Twitch 43.6% 6 Justin.tv 1.2% 2 WWE 17.7% 7 Sky News 0.9% 3 Ustream.tv 10.9% Livestream 0.9% 4 MLB.com 7.2% CNN 0.8% 5 ESPN 6.3% 10 NBC News 0.6% AS DEMAND INCREASES, QUALITY ISSUES EXPLODE QUALITY IS SUFFERING AS A RESULT 51% 42% THE BIGGEST FRUSTRATIONS CONSUMERS HAVE WHEN REPORT REPORT STREAM DOWNLOAD VIDEO QUALITY ISSUES WATCHING VIDEOS ONLINE ABOUT 75% OF CONSUMERS HAVE EXPERIENCED VIDEO QOE ISSUES, AND $} 63% OF CONSUMERS ARE WILLING TO PAY FOR VALUE-ADDED SERVICES TO IMPROVE THEIR VIEWING EXPERIENCE VIDEO OF GLOBAL 80%-90% ONLINE TRAFFIC IS PREDICTED TO COMPRISE BY 2017 BUT THERE'S HOPE VIDEO CACHING CAN FIX THIS PROBLEM HOW TRANSPARENT VIDEO CACHING WORKS Transparent caching sits on top of network's infrastructure to identify and store popular videos Content provider delivers videos through service provider network TRANSPARENT CACHING CONTENT NETWORK INTERNET INFRASTRUCTURE SOURCE SERVICE PROVIDER SUBSCRIBER Transparent caching delivers these popular videos at the neighborhood level in close proximity to subscribers, reducing OTT (over-the-top) video traffic, improving network performance and ensuring a high quality of experience for subscribers VIDEO QoE IMPROVEMENT WITH VIDEO CACHING AVERAGE BIT RATE DELIVERED BY VIDEO CACHE AVERAGE BIT RATE DELIVERED BY CONTENT PROVIDERS 181% 198% 155% 1133% EUROPE SOUTH AMERICA NORTH AMERICA ASIA Sources Accenture's Video-Over-Internet Consumer Survey 2013 Akamai Technologies, Inc.'s Investor Summit Presentation 2013 Amazon Apple Avvasi Inc Cisco Visual Networking Index: Forecast and Methodology, 2012-2017 Comcast Frost & Sullivan's Global Over-the-top Video Test and Monitoring Market data Frost & Sullivan's Global Transparent Caching Market data Mintel Research MLB.com NBC Sports Parks Associates' Connected TV: Trends and Innovation report 2013 Qwilt Qwilt Twitch YouTube This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 United States Solving the Online Video Problem 0: