by Cam Clark
Viva la Television Revolution! TV has come a long way since 1926. If you think of the DVR as the Wright brothers’ airplane, then we are on the cusp of the jet engine of TV – a fundamental shift in how we consume, interact with and distribute video media. If you look at recent industry developments, a crystal-clear picture begins to emerge.
Lets start with a Neilson Poll that states “Online Video Usage was up 45% in 2011″ It increased to “68.2% of US internet users, or 158.1 million people watching video content online each month,” as stated by eMarketer. The site also said that “by 2015, that figure will increase to 76% of internet users, or 195.5 million people and In the same period, online video advertising spending will surge from $1.97 billion to $5.71 billion.” Those are some impressive numbers.
More people than ever are turning to online video for their video entertainment. Add in a report from The Diffusion Group that states “Likelihood to downgrade PayTV Services is increasing for those that watch online video” (Netflix in particular in this study.) and you start to see a trend of people moving to online video in masses.
If that weren’t enough, services such as Netflix, YouTube, Hulu, iTunes, Amazon Video On Demand, Blockbuster Video Online and Vudu, just to mention a few, are rapidly growing in number and popularity. Netflix streaming alone is now the single largest source of peak downstream Internet traffic in the U.S., according to a new report by Sandvine. The streaming video service accounts for 29.7 percent of peak downstream traffic, up from 21 percent last fall.
Finally, many hardware companies are throwing their hat in the ring to make the next box to deliver these services. A few of these devices are: AppleTV, Google TV, Roku, Boxee Box, PS3 and XBox. Sony’s CEO says the company is investing heavily in “a different kind of TV set.” In Steve Jobs’ biography, he was quoted as saying, “I’d like to create an integrated television set, It would be seamlessly synced with all of your devices and with iCloud … It will have the simplest user interface you could imagine. I finally cracked it.” Apple has single-handedly changed the music, computer and mobile phone industries, and now has the television industry in its sights. Apple’s had a rumored game-changing TV for some time now. Two big hints of big moves by big companies coming soon.
- More people then ever are watching video online.
- Internet video usage went up 45% this year.
- Once people start watching video online, they tend to “cut the cord” of old methods of consumption.
- Internet video has become the No. 1 source of downstream traffic on the internet.
- Major companies are investing in industry-changing moves.
By now, the picture I was talking about earlier should be transmitting to your brain in high definition. Are you as excited as I am about the revolution that is about to unfold? If the answer is no, why not? If the answer is a resounding yes, then I bid you happy watching!