Streaming Video

By Rita Stankeviciute

What is streaming video?

The convergence of telecommunications and computer technologies has become a springboard for video and audio production to plunge deep into the waters of the internet. The new medium called streaming video was unimaginable just ten years ago but now it is becoming an every-day commodity for millions of the internet users. Streaming video changed the world for the tech-savvy people and the predictions are that every consumer’s information behavior is about to change too.

Streaming video means that motion video together with audio is delivered live to your personal computer over the internet. The size of the memory of a computer does not play any role because there is no need to download anything. Nearly every computer nowadays can play videos and can be used to broadcast audio and video outward in the internet, so streaming video is contingent only on the connection speed.

The spread of broadband internet connections and the increase in bandwidth contributed to the development of video online. Although some streaming videos are still available with a narrowband connection, out of 5 billion total video streams analyzed in 2004, 79.1% were served at rates of 100 Kbps and above. [1]

It is expected that by 2005 half of all homes online will be using broadband connections. According to Broadband Viewer Metrics and Market Analysis 2000 –2004 YTD, the latest published report by AccuStream iMedia Research, “broadband users accessed an average of 15.4 video streams per month during the first half of 2004, up 42.6% over 2003 for sites with 90% broadband usage.” [2]

These numbers and the changing patterns of internet content show that streaming video is becoming an extremely popular medium. Now one does not have to worry about missing a TV program or a new music video. More often broadcast television companies and cable TV stations have the most resonant or exclusive materials on their websites. Just type in the address, pick the player, choose the speed and in less than a minute the desired video streams onto your computer screen.

In this presentation other areas of the internet and wireless technologies regarding streaming video will also be discussed. How does this technology work? What technological, economical and regulatory problems does it face? Where is streaming video “streaming” to in the future?

The Start of Streaming Video

The idea of streaming video over the internet was illusory just ten years ago because the speed at which computers exchanged information was not fast enough and the compression of digital information was still it its development stages. In the middle of the 1990s the reach of the internet was still small and the majority of users had analog dial-up modems, which meant that downloads of any kind of video would take too long. This notwithstanding, the experts in the business truly believed in the future of this technology. This excerpt of a magazine article in 1996 illustrates:

You, too, can instantly and reliably deliver quality audio and video content to anyone in the world who clicks a media link on your Web site! Sound too good to be true? Well, it's money in the bank, provided you can be flexible when it comes to quality. [3]

It is believed that the turning point that made streaming video popular was the war in Iraq. The surge in traffic was huge – on the first day of the war RealNetworks issued 4.1 terabytes of data. According to streaming-video providers, the conflict in Iraq was “a watershed moment for streaming video and its ability to progress online”. [4]

It was advances in information technologies, specifically networking and digital file compression that enabled video to be transmitted over the internet. The growth of broadband connections and use of digital cameras made video streaming over the internet a reality to many.

How the technology works?

How does a video stream on a computer screen instantly after clicking an icon and one does not have to worry about how much hard disk space is available on the computer?

Figure 1: Webcasting diagram (www.contenta.com.)

Figure 1 explains the concept of the technology.

The main concept of streaming video is buffering at the video server and client side in order to store packet sequences locally instead of downloading the entire video. Streaming video buffers one to two seconds of packetized video at the client site; thus, the user can start watching the video almost immediately with only a small delay. This technique does not take up any hard disc space and also allows real-time transmission events. [5]

An important factor in the development of video streaming was the development of compression techniques. Compressing data that is being transferred over a network made it possible to effectively increase the bandwidth available at any connection speed. [6] Compression also reduced the storage volumes of multimedia content and limited the bit rate necessary to transmit over the internet. [7]

The three most popular programs that allow the simultaneous transfer of digital media received in a continuous and real time stream are RealMedia Player, Apple QuickTime Player, and Microsoft Windows Media Player. “Once you've installed a player, you can click on a link and start watching a feed almost instantly. The problem, as with audio, is that you will find video streams that work with some players but not with others.” [8] So the best solution is to have all of them, since they all are free and available online (see Figure 2).

Figure 2: The most common platforms for playing streamed content are Windows Media Player (Microsoft), QuickTime (Apple) and Real (Realnetworks).

This technology allows not only television stations but also “every company, every local theater arts group and any kid with an interest in video to mount their own Web-based television station. Forget about the 500-channel universe… [it is] the 5 million-channel universe.” [9]

Video streaming vs. Television

In our fast-paced information society people want to get their news and entertainment anytime anywhere. Streaming video creates wonderful opportunity for content providers to gain a wider audience. Throughout the years not only has the number of video streams increased significantly but also the number of viewers (see Table 1 and Table 2). Total video streams served rose 104% in 2003 to 7.87 billion. Accustream iMedia Research forecasts that streaming video will continue to register double-digit growth gains. Table 2 shows how the viewing of the streaming videos in every content category is growing every year.

Table 1. [10]

Table 2. [11]

Source: Accustream iMedia Research

Does the spectacular growth of this new technology threaten the future of traditional TV networks?

Although internet is taking on some of the functions of television, it is hardly imaginable that a computer is going to replace the television set anytime soon. Firstly, broadband digital television moves ahead and now offers not just the traditional programming but also all kinds of on demand and pay-per-view materials. The total amount of information on television so far outnumbers video streams available online. Secondly, TV viewing habits are entrenched into the modern culture and as yet only some people are willing to substitute their enormous TV screens for a computer screen. Finally, internet is still “far from providing the required quality of service for video streaming” [12] and so the quality is often poor compared to the pictures on TV:

Web users often feel frustrated by the small images, slow delivery, missing frames, and poor audio sync that they experience when browsing the current Internet and come across audio and video clips they would like to view. These problems are exacerbated when viewing live television on the Net; the pictures are coarse and grainy and the motion jerky. [13]

Streaming video has its struggles, however, it attracts audiences. One of the reasons for that is that the internet is available during working hours:

A recent study by eMarketer and the Wall Street Journal Online has determined that there are 50 million members of the Internet "at-work audience." Unable to get to a television to watch news, these folks may be turning to streaming video because they have no other choice. And if the content they want is only available for a fee, they're prepared to pay for it. [14]

Although people seldom sit back and relax at the computer, the ability to access archives of information and shows, as well as original content, is another reason for people to watch streaming videos.

Now, the majority of television news websites provide streaming video feeds from their original news programs, as well as excerpts of many other television shows. For instance, you can watch segments from NBC Nightly News and special reports on www.msnvideo.msn.com or for $4.95 per month you can subscribe to ABCNews On Demand (www.abcnews.com) and have access to video news streams around the clock.

Some companies also produce original streaming videos that draw subscribers’ attention. One of the first and most celebrated interactive attempts was a real-time fashion show on apparel company Victoria’s Secret website in 1999. The visitors were guided through the website by supermodel Heidi Klum who walked onto the page, offering information regarding the swimming suits visitors click on. [15] As many as 1.5 million people tried to connect to the website during the live show. [16]

Sports, adult entertainment, music videos, movie trailers are also highly in demand and fast growing content of streaming video that make people tune in online. Some of them are free (if you watch advertisement), some you have to pay for. Nonetheless, streaming video is becoming a business and has the potential for huge profit.

Economic issues

The convergence of television, advertising and the internet is a well-spring of new revenue. Television stations retransmit some of their content for a fee or they get companies to advertise on their websites that get more visitors because the streaming videos are available online anywhere in the world.

Hollywood and movie distribution companies benefit because internet cuts shipping costs and “a new way of pay-per-view is possible as streaming to the home begins to match the quality of traditional media distribution. Old films that would have stayed in a vault could be ordered on demand”. [17]

Sports is one of the most sought after contents online. Many games are broadcast on TV only in particular areas of the United States or the world. In this case video streaming online becomes the only way to access a game and fans are willing to pay to watch low-quality action on their computer screens. An impressive example of sports on demand over the internet is the revenues that Major League Baseball (MLB) got in 2003 after offering live and archived video services online:

First, distribution deals worth a combined $49 million were announced in March with Internet service providers AOL and MSN to stream live games and highlights over the Web. Then, on April 1, the league was set to announce deals with three cable operators -- Comcast, Charter Communications, and Cablevision -- to provide new high-speed data customers live Webcasts of more than 240 games a month. Fans can also access archived games for later replay. … During the 2003 season, MLB.com's third year in business, the site attracted 500,000 subscribers. Those services contributed to MLB.com's $92 million in revenues last year, up 77% from 2002. [18]

Websites that broadcast audio and video over the internet attract a lot of advertising. A study by Arbitron Inc. and Edison Media Research “Internet and Multimedia 12: the Value of Internet Broadcast Advertising” found that “with an estimated monthly audience of 51 million people, internet broadcasting is an affluent and compelling value for advertisers with half living in households with an annual income of $50,000 or more”. [19] Because of more advertisements, in 2004 more content moved out from behind subscription services and it pushed usage numbers.

Regulatory issues

Streaming video is a promising business but still has to solve many regulatory problems. Copyright laws are not suited for webcasters that want to access the programming owned by others. They are required to negotiate with each individual copyright holder before retransmitting TV broadcast signals over the internet. Under U.S. Copyright law, even broadcasters, who transmit their own original programming that includes copyrighted sound recordings, should pay extra royalty. [20]

Copyright and piracy issues are a longstanding problem in the internet business. Users are not going to be able to go to www.nbc.com and watch NBC’s program live until NBC is guaranteed that the videos will not leak outside the United States. There was a scandal in 2000 when a Canadian website iCraveTV started streaming uninterruptedly 17 Canadian and U.S. broadcast TV stations online. The founder of the website used those signals online without permission and so TV stations, movie studios and sport leagues sued him. Under Canadian law users did not need permission, however, a U.S. judge ordered the company to shut down and iCraveTV.com lost the battle:

The legal fight is one of the first signs of what is likely to be an ongoing struggle between traditional programmers and online companies as the Web increasingly becomes a video medium. Many sites have already begun offering original programming of their own--but the attraction of providing proven draws such as sports games, news or network television shows is irresistible [21]

“Public policy as well as corporate practice is very much in flux when it comes to cyberspace law and regulation”. [22] High-speed internet is still immature, so there are still legal concerns.

WIDER APPLICATIONS

The ability to stream content directly to end-user personal computers attracts attention from different organizations. Businesses and public schools and universities are embracing video streaming for education, training and communication.

Education

The Harvard Business School has been using streaming video for almost ten years “to deliver case studies and learning materials for its classes via a closed corporate intranet”. [23] Now, class materials often can be found online. A number of websites provide streaming videos for educators that are incorporated with other materials for classes. Streaming is a convenient and a time efficient way to support curricula with films and videos. In addition, it can eliminate access problems and is cheaper. [24]

Yet, the use of streaming video for educational purposes has not taken hold mostly because of the prominent problems such as the lack of broadband connections, high-resolution monitors in classrooms, and computer literacy.

Corporate communication

Streaming video is being embraced by large corporations to communicate throughout the world; smaller businesses use the new technology for training and communication. “Research from the Yankee Group indicated that more than one-third of companies with more than 100 employees use streaming media for training and education, and over one-quarter use streaming video for corporate marketing, advertising, and branding programs”. [25]

For many companies it is important that the streaming video be available not just live but also archived, because it is not always possible for workers to be at their desk at specific time. That is the main advantage of this type of streaming video technology against the live streaming over satellite and other broadcast platforms.

Mobile Streaming

Technological advances in wireless networks allowing for higher-speed data connectivity has brought streaming multimedia to people’s cell phones.

For a monthly fee a number of converted television programs are directly broadcast to cellular phones capable of receiving and displaying video. Although it is still costly and not widely used, people in business believe in the future of mobile streaming. According to Jeff Hallock, vice president of consumer marketing for Sprint PCS, the phone is a “third screen”:

	Television is the first screen, and the personal computer is the second. We’ve got the opportunity to deliver an experience where users can watch things happen on the third screen that combine a lot of the functionality of the first two – and it’s the only one that’s with you at all times.
	Figure 3: Streaming video is moving to consumer electronic devices. Sports content is among the services on a mobile telephone

Telephone companies can benefit from the technology of streaming video because the subscriber growth is evident. However, mobile streaming has to mature to the point where it is not only affordable but the quality is up to par with computers.

CONCLUSION

Recent advancements in the information technologies have allowed for video programming to be streamed via the internet for live or subsequent viewing. Video streaming is the process whereby digital information is compressed then delivered in segments piece-by-piece, but rapidly enough that the information streaming is continuous.

The growth of broadband internet connections in the United States has made the continuous and real time webstream more readily available, thus more and more subscribers enjoy the videos online. One of the technological advantages of streaming video is that it does not take up any computer disc space, so the technological requirements to view the pictures are not hard to meet.

Throughout the years not only has the number of video streams increased but also the number of viewers. People watch news, movies, adult entertainment, music videos, TV programs or sport events online.

Inevitably streaming video will create a competition between traditional television networks and internet because people can watch the provided clips anytime anywhere. Audiences are attracted to the provided archives of information and shows, especially the materials that are not available anywhere else but online. Some might say that no one would exchange a big TV screen for a small window on the computer but the new generation prefers the computer and for the others there is a new technology available – Web TV which means that the internet content can be streamed onto the television screen.

Streaming video is becoming a profitable business. Television companies offer access to video streams for a fee, advertisers are willing to pay more for advertising online because of the growing audiences, internet cuts costs for movie distributors. Video streaming is also embraced by businesses and schools for education, communication or training.

Streaming video is a promising business but it still has to solve many regulatory problems. Cyberspace laws are a subject of change as new technologies and services come around and shape the face of the internet.

The videos stream not only into computer screens but also on mobile phones. Major mobile market leaders offer services that bring video to cellular phones anytime, anywhere with new technological developments wireless networks can support higher-speed data connectivity. There is still a lot of work to be done to improve the quality of the wireless streaming video. Nevertheless, video streaming is a dramatically growing new technology that is contributing to the information society because it makes desirable information in video format available anytime anywhere.

References:

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