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The Online Video Ecosystem Explained — Who Holds The Real Power In Video Streaming?
BII
Netflix's recent peering agreement with Comcast has ignited a firestorm of debate about the relationship between video companies and Internet Service Providers (ISPs). ISPs operate the "last-mile" of fiber that connects the final segment of the Internet — including bandwidth-intensive video — with end users.
Unfortunately, there's been a lot of misinformation over how peering agreements, including the Netflix-Comcast deal, relate to the wider debate over net neutrality.
To make matters worse, all sides in the debate — transit providers, CDNs, ISPs, and content providers — are guilty of distorting the conversation.
In a new report from BI Intelligence, we take a close look at the online video ecosystem, unpacking how content gets from video service providers like Netflix and Hulu, on to consumers' screens, and determine who holds the real power in video streaming. We also look at what's really going on between Netflix and Comcast, and in the broader net neutrality debate, as it relates to video streaming.
As consumers' appetite for streaming video keeps ballooning, the debate over how to best get content onto screens, and who should foot the bill, will keep bubbling up.
Access The Full Report And Data By Signing Up For A Free Trial Today >>
Here are some key takeaways from the report:
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Content providers — everyone from Hulu and Netflix to a mid-sized publisher of Web video — face an array of options and several layers of middlemen to get their content to audiences.
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Transit providers like Cogent, Level 3, and XO Communications provide the basic pipelines for moving video around.
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Content Distribution Networks or CDNs, such as Akamai and LimeLight are the specialists in making sure that the content providers are getting the best video performance at the best price.
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Transit and CDN prices are negotiated on an ad-hoc basis based on a number of factors, including traffic volume, throughput (bandwidth), time of use, and other factors.
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In an effort to gain more control over the quality and cost of moving video around, many content providers have built out their own CDN networks.
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The relationship between content providers, CDNs, transit providers, and ISPs are governed by "peering agreements," which is just another way of referring to the contracts that stipulate the volume of traffic that each player is entitled to at different prices, including free and paid tiers.
-
Both content providers and ISPs have misrepresented the economics and mechanics of video streaming in order to advance their agendas in the context of the debates over fuzzy concepts like "net neutrality," and "Internet freedom."
-
At heart, the disputes over video streaming fees boil down to who should pay for the exploding popularity of streaming video, and at what quality of service.
The report is full of charts and data that can be easily downloaded and put to use.
In full, the report:
Read more: http://www.businessinsider.com/the-online-video-ecosystem-explained--who-holds-the-real-power-in-video-streaming-2014-4#ixzz36NBw6Kkb
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'admin' pid='46186' dateline='<a href="tel:1404358 Wrote:
The Online Video Ecosystem Explained — Who Holds The Real Power In Video Streaming?
BII
Netflix's recent peering agreement with Comcast has ignited a firestorm of debate about the relationship between video companies and Internet Service Providers (ISPs). ISPs operate the "last-mile" of fiber that connects the final segment of the Internet — including bandwidth-intensive video — with end users.
Unfortunately, there's been a lot of misinformation over how peering agreements, including the Netflix-Comcast deal, relate to the wider debate over net neutrality.
To make matters worse, all sides in the debate — transit providers, CDNs, ISPs, and content providers — are guilty of distorting the conversation.
In a new report from BI Intelligence, we take a close look at the online video ecosystem, unpacking how content gets from video service providers like Netflix and Hulu, on to consumers' screens, and determine who holds the real power in video streaming. We also look at what's really going on between Netflix and Comcast, and in the broader net neutrality debate, as it relates to video streaming.
As consumers' appetite for streaming video keeps ballooning, the debate over how to best get content onto screens, and who should foot the bill, will keep bubbling up.
Access The Full Report And Data By Signing Up For A Free Trial Today >>
Here are some key takeaways from the report:
-
Content providers — everyone from Hulu and Netflix to a mid-sized publisher of Web video — face an array of options and several layers of middlemen to get their content to audiences.
-
Transit providers like Cogent, Level 3, and XO Communications provide the basic pipelines for moving video around.
-
Content Distribution Networks or CDNs, such as Akamai and LimeLight are the specialists in making sure that the content providers are getting the best video performance at the best price.
-
Transit and CDN prices are negotiated on an ad-hoc basis based on a number of factors, including traffic volume, throughput (bandwidth), time of use, and other factors.
-
In an effort to gain more control over the quality and cost of moving video around, many content providers have built out their own CDN networks.
-
The relationship between content providers, CDNs, transit providers, and ISPs are governed by "peering agreements," which is just another way of referring to the contracts that stipulate the volume of traffic that each player is entitled to at different prices, including free and paid tiers.
-
Both content providers and ISPs have misrepresented the economics and mechanics of video streaming in order to advance their agendas in the context of the debates over fuzzy concepts like "net neutrality," and "Internet freedom."
-
At heart, the disputes over video streaming fees boil down to who should pay for the exploding popularity of streaming video, and at what quality of service.
The report is full of charts and data that can be easily downloaded and put to use.
In full, the report:
Read more: http://www.businessinsider.com/the-online-video-ecosystem-explained--who-holds-the-real-power-in-video-streaming-2014-4#ixzz36NBw6Kkb
Interesting article, thx for sharing. One of the interesting parts of Clipstream tech is this (from the 10K)
Dozens of parameters provide functionality not available from any other streaming solution. For example, Clipstream® provides the only technology available to link every pixel or group of pixels in a banner to a different audio stream. This technology can be used for audio navigation of a website or to provide ads that do not require the visitor to leave the host site to listen to an ad.
reading this article, and applying the above tech, it makes me wonder about the possibilities of combining advertisement with live streams of football games etc
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Yes, they're a small outfit so things go a bit slow, but the tech really has interesting capabilities especially for the ad world, like clickable items in video streams.
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07-07-2014, 09:49 AM
(This post was last modified: 07-07-2014, 09:51 AM by admin.)
Online Video Advertising Is Growing Many Times Faster Than TV, Search, And Most Other Digital Ad Markets
Online video is growing faster than most other advertising formats and mediums.
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Video ad revenue will increase at a three-year compound annual growth rate (CAGR) of 19.5% through 2016, according to our estimates.
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That's faster than any other medium other than mobile. And much faster than traditional online display advertising, which will only grow at a 3% annual rate.
In a new report from BI Intelligence we explore the key drivers of the skyrocketing growth of video ads, examine the cost and performance of the emerging digital ad format, and look at the major players that are shaping the industry.
Access The Full Report By Signing Up For A Free Trial Today »
Here are some of the key trends we explore in the report:
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Online video ad revenue will reach nearly $5 billion in 2016, up from $2.8 billion in 2013, while TV ad revenue will decline by nearly 3% per year during the same time period.
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Video ad views exploded in 2013, topping over 35 billion views in December, averaging over 100% year-over-year monthly growth during the year.
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Online video ads are significantly more expensive than other formats, but prices are steadily declining as more publishers rush into video, and placements open up.
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Video ads have an average click-through rate (CTR) of 1.84%, the highest click-through rate of all digital ad formats.
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Viewability, the question of whether video ads are actually seen by multitasking online viewers, has emerged as an issue, but we believe that overall demand for online video is too high for viewability to put too much of a crimp in the video ad market.
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Streaming devices and connected TV accounted for just 2% of online video ad views in the fourth quarter of 2013, but companies like BrightLine are experimenting with formats to grow this new niche market.
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The growth of mobile and digital video advertising has been paralleled by fundamental changes in the online advertising industry — programmatic advertising, which we covered in a recent report, has begun to reshape the entire digital ad market, including video.
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Newly launched video ad platforms have been among the companies to adopt programmatic tools, including real-time bidding, ad exchanges, and advanced analytics.
The report is full of charts and data that can be easily downloaded and put to use.
In full, the report:
For full access to all BI Intelligence's charts and analysis on the video industry, sign up for a free trial.
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yes the potential is definately there. Perhaps they will eventually win contracts like this
http://www.marketwatch.com/story/inside-...2014-07-01
Destiny's patented watermark security technology does not require DRM.
Will be interesting to listen to the upcoming CC
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