Four reasons why online videos are becoming even more relevant
Editorial
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March 30, 2017
According to a forecast by IT and telecommunications provider Cisco Systems, the share of online videos in the total volume of data on the internet will grow to over 80 percent in the next two years. "The dominance of video in Internet content will become increasingly strong," predicts Ron Yekutiel, CEO and co-founder of Kaltura, the world's leading provider of video services from the cloud. "It is becoming easier and cheaper to produce videos. There are practically no more technical hurdles. "The further growth of online videos will be determined by four main developments:First: Video on demand displaces traditional televisionLarge media companies have long since recognized the internet as the business area of the future and are increasingly providing their customers with videos "on demand" and as live streams. "Users want to decide for themselves when they want to watch their favorite series, for example," says expert Ron Yekutiel. "As a result, more and more cloud providers are entering the market and traditional TV consumption will shift even more to the internet. "This growth market also includes providers of over-the-top (OTT) content, i.e. program content from the internet that is transmitted to the TV set via additional devices. Experts expect sales of 19 billion US dollars in the USA alone in 2019 - a doubling since 2014. By 2021, around forty percent of all US citizens will be subscribers to web TV providers. This makes it clear why telecommunications companies and media houses are investing considerable sums in this form of content.Secondly: companies rely on videosCompanies are also increasingly relying on video content, for example by establishing their own "corporate TV". Target groups include their own employees as well as potential customers and influencers, i.e. people who are believed to be able to influence the opinions of users as they enjoy a high reputation among the respective target group. The possible uses of videos are wide-ranging and extend from corporate communications and advertising to the large area of training and further education. "Companies have realized that they need to adapt their communication to the needs of their target groups and not the other way around," says Ron Yekutiel. "The first choice for target groups is to record content and messages via the medium of video."Thirdly, video systems make an important contribution to educationIn the field of education, the trend towards video content is unstoppable. More and more universities and other educational institutions around the world are installing video management systems for education and training. Easy access to education is a much-discussed problem in societies around the world. Web-based e-learning can make an important contribution to education here and will establish itself as the norm. The desire for lifelong learning will become attainable for many people in this way.Fourth: Mega trend live streamingLive streaming will establish itself as a mega trend in 2017. The first signs of this already became clear last year. It is becoming increasingly difficult for companies and advertising experts to stand out from the crowd and reach their target groups. The event character of live streaming makes it possible to let interested parties participate in an event in real time. These can be product presentations, lectures or current reports. There are no limits to creativity here, and technical advances in mobile receivers in particular will boost the spread of live streaming. Better transmission quality thanks to more bandwidth and faster data connections are the "turbochargers" for video content in real time on smartphones and tablets. "Social media platforms such as YouTube and Facebook will continue to expand their live streaming platforms and turn the trend into a standard," predicts Ron Yekutiel. "Advertising will also discover the medium for itself and thus provide another opportunity to increase the revenue of content providers and platform operators."
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According to a forecast by IT and telecommunications provider Cisco Systems, the share of online videos in the total volume of data on the internet will grow to over 80 percent in the next two years. "The dominance of video in Internet content will become increasingly strong," predicts Ron Yekutiel, CEO and co-founder of Kaltura, the world's leading provider of video services from the cloud. "It is becoming easier and cheaper to produce videos. There are practically no more technical hurdles. "The further growth of online videos will be determined by four main developments:First: Video on demand displaces traditional televisionLarge media companies have long since recognized the internet as the business area of the future and are increasingly providing their customers with videos "on demand" and as live streams. "Users want to decide for themselves when they want to watch their favorite series, for example," says expert Ron Yekutiel. "As a result, more and more cloud providers are entering the market and traditional TV consumption will shift even more to the internet. "This growth market also includes providers of over-the-top (OTT) content, i.e. program content from the internet that is transmitted to the TV set via additional devices. Experts expect sales of 19 billion US dollars in the USA alone in 2019 - a doubling since 2014. By 2021, around forty percent of all US citizens will be subscribers to web TV providers. This makes it clear why telecommunications companies and media houses are investing considerable sums in this form of content.Secondly: companies rely on videosCompanies are also increasingly relying on video content, for example by establishing their own "corporate TV". Target groups include their own employees as well as potential customers and influencers, i.e. people who are believed to be able to influence the opinions of users as they enjoy a high reputation among the respective target group. The possible uses of videos are wide-ranging and extend from corporate communications and advertising to the large area of training and further education. "Companies have realized that they need to adapt their communication to the needs of their target groups and not the other way around," says Ron Yekutiel. "The first choice for target groups is to record content and messages via the medium of video."Thirdly, video systems make an important contribution to educationIn the field of education, the trend towards video content is unstoppable. More and more universities and other educational institutions around the world are installing video management systems for education and training. Easy access to education is a much-discussed problem in societies around the world. Web-based e-learning can make an important contribution to education here and will establish itself as the norm. The desire for lifelong learning will become attainable for many people in this way.Fourth: Mega trend live streamingLive streaming will establish itself as a mega trend in 2017. The first signs of this already became clear last year. It is becoming increasingly difficult for companies and advertising experts to stand out from the crowd and reach their target groups. The event character of live streaming makes it possible to let interested parties participate in an event in real time. These can be product presentations, lectures or current reports. There are no limits to creativity here, and technical advances in mobile receivers in particular will boost the spread of live streaming. Better transmission quality thanks to more bandwidth and faster data connections are the "turbochargers" for video content in real time on smartphones and tablets. "Social media platforms such as YouTube and Facebook will continue to expand their live streaming platforms and turn the trend into a standard," predicts Ron Yekutiel. "Advertising will also discover the medium for itself and thus provide another opportunity to increase the revenue of content providers and platform operators."
