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THE VIDEO STREAM RISES [Searcher](Searcher Via Acquire Media NewsEdge) Digital everything is covering the surface of our planet with still images, moving images, photo albums, movies, and a whole lot more. Data volume is measured in gigabytes only for phones and local storage. Cloud servers have expanded capacities almost beyond our ability to measure, and there is no stop sign on their development road. One consequence is that waste is returning to technology. With no storage limits, you can store multiple copies of anything and everything - comic books, newspaper clippings, family files, and tax returns, along with pictures, recordings, and videos of any size. The technology evolution has created lots of new products. Throughout the centuries of change, new has replaced old. Horses and stagecoaches gave way to cars and trains, which in turn moved aside for steamships and planes. Operator-assisted telephones were replaced with rotary dials, then 10-buttons; corded went away with wireless and cellular. In the late 1970s and early 1980s, videotape format wars ended with VHS beating Betamax. In the 1990s, DVDs showed up with greater capacity and functionality. Now we have streaming video and the demise of local video stores. Video streaming will surpass DVD and Blu-ray Discs as American's favorite format for watching movies this year. A March 2012 report by senior analyst Dan Cryan from IHS Screen Digest estimates that Americans will watch 3.4 billion movies online compared to buying just 2.4 billion physical, hard copy Blu-rays and DVDs. "Americans will pay to consume more movies online in 2012 than they will on physical video formats, marking the first year that legal, Internet-delivered movies will outstrip those of DVDs and Blu-ray Discs combined" ("US Audiences to Pay for More Online Movies in 2012 than for Physical Videos," March 22, 2012 [www.isuppri.com/ Media-Research/News/Pages/US-Audiences-to-Pay-Morefor-Online-Movies-in-2012-than-for-Physical-Videos.aspx] ) . In the IHS report, Cryan stated that video - movies, TV shows, documentaries, et al. - on physical media is ending. Services from Netflix and Amazon Prime have been the change leaders, but there are many new and soon to be launched services that will add volumes and confusion to the market. Significantly this video tsunami is happening with the collaboration of increased broadband speed, mobile signals everywhere, and video viewing hardware of multiple sizes, from the 90" big screen to the 4" tiny screen. Viewing options include public or private locations, on the move or stationery, alone or in a group. How you connect and how you watch are being impacted by streaming technologies. You can watch a movie on a tablet, phone, or computer or go into some public theater, library, or sports bar to watch video on demand. Already implemented digital recordings allow us to watch a game, concert, or press conference when it suits our schedule. NBC's Olympics coverage was scheduled for showing in prime time. Cries heard around the country protested that internet newscasts let the results be known in advance. You had to hide away from any connection to avoid spoiling "the moment" of the event. What Does This Mean The streaming online movies model has been attractive and consumer-friendly. However, issues surround the problem that streaming does not yet have a viable financial model. Networks, movie studios, and cable providers are searching for profits. Not being able to interrupt broadcasts with commercials reduces revenue. Netflix and Amazon Prime deliver video services through the "all you can eat" buffet model; users pay one monthly fee and watch all they want. Cable providers charge a premium for content providers such as HBO, Starz, and NFL football (you choose the game). Microsoft has already loaded up the Xbox 360 game console with video streaming apps for Netflix, ESPN, Hulu, and YouTube. Recently, it added apps for HBO Go, Major League Baseball, and Comcast video to increase Xbox 360's consumer appeal. Use one box to get whatever stream you desire 24/7. Free, or all you watch subscriptions can mean a difference in the billions. Money is a real motivator in the future of streaming. Come to think of it, in any future. Mobile services are also gaining momentum. Smartphone manufacturers have already entered the competition. Today's 4-oz. smartphones have more computing capacity than the 2, 000 -lb. Mars Rover Curiosity at least according to Computerworld ("Your Smartphone Is as Smart as the Curiosity Rover," Sharon Gaudin, Aug. 8,2012 [http://bit.ly/NMxoks]]). On the other hand, your smartphone probably will never travel 350 million miles in outer space at a speed of more than 17,000 mph and stop on a dime in 7 minutes flat. Mobile device technology will integrate digital rights filters straight into the mobile device. The future may be mobile devices that won't even let you try to pirate content. Cable companies are partnering with content producers to move a growing amount of streamed video content behind paywalls in an effort to protect their core business profits. Networks and studios are out to protect content core businesses. Soon, a significant portion of content will be behind paywalls, limited to customers who already subscribe to a pay service. Consumers increasingly will find themselves wading through multiple device options and payment plans for streaming services. It's going to be more complicated. Netflix has been the catalyst in the surge of streaming with other providers including Hulu, Vudu, Crackle, and Amazon Prime The all-you-can-stream subscription model is attractive. The going forward model will sometimes confuse consumers as to what content will be available where. Today, purchasing any television set provides access to major network broadcasts - ABC, CBS, NBC. Online streaming is expanding, and subscriptions will be required for content beyond news and weather forecasts. Service delivery providers will expand channels and content along with access to huge content databases. Here are a few examples: * YouTube is expanding its content channels. * Comcast's Xfinity distributes movies and TV shows on computers, phones and tablets. * Cox Communications customers can access 10,000 videos for computers and laptops. * Dish Network added instant streaming of movies, TV shows, and games to TV and tablets. * Verizon is creating a streaming service with Redbox, the disc rental kiosk company. * Pay-TV companies will fight to keep their customers within their product systems. * Amazon Instant Video & Prime Instant Video is growing its library. * Apple iTunes is more than music and apps. * Vudu, owned by Walmart, has a large distribution capacity. Delivery technology features will be added to every device, such as TVs and Blu-ray DVD players, Xbox, PS3, Wii, iOS, Android, Apple TV and WD -TV Roku's tiny internet connectible box delivers more than 400 entertainment channels to consumers with pay subscriptions, such as Netflix and Amazon. More Coming Bigger, faster, better tech features are heading to every electronics device - refrigerators, phones, ovens, automobiles and whatever else you may carry with you. What attracts consumers will help determine what will become a hit or a miss. The key, of course, is what will be usable by the greater number of every generation. Seniors are learning how to share video and photos on social media. As Boomers and Millennials age, their technical skills will be more tappable for image sharing. Everything labeled "smart" will get even smarter features. One beneficiary will be our environment, as digital trash will not be added to any landfill. Print, billboard, and television advertisements are being replaced by software. This business model is changing economics. Things used to get more expensive every year. With digital economics, things get cheaper. Free is no longer just an option but a logical destination. There is a huge difference between cheap and free. Give a video away, such as on YouTube, and it can go viral. Charge 99 cents and the business changes as you pay for hosting services and compete for customers. The psychology of "free" is being redefined. The most common of the economies built around free has three participants. In this model, a third party - an advertiser, sponsor, or gift-giver - pays for the product or services created by a free exchange between the other two parties. Television advertising has been very successful with this model. See Super Bowl advertising fees. College scholarships, food banks, and charities work on these principles. Third parties will not pay for every business and personal item. The challenge is to locate and implement how to make money starting with a model of giving something away. Movie theaters keep ticket prices lower due to sales of popcorn and soda. Search engines may sell information gathered about who watches what and when. The oft-mentioned axiom "Give away the razor and sell the razor blades" continues to be correct. Taking pictures used to have a lot of steps and costs - camera, film, and development. Copies and enlargements added to money spent. Enabled by technology breakthroughs, digital economics has turned traditional economics upside down. Digital products and services follow a simple method of "Build once, use many times." A restaurant or grocery store has a food cost for everything made or sold. With digital products, companies need to determine how small a percentage of their customers will provide sufficient revenue to make the products profitable. For example, traditional telephone service providers can add many customers without adding any expenses for expanding their pipeline and infrastructure. Video stream providers follow this model. One additional customer adds next to nothing to their expenses. The pipeline is already in place. At some point, more bandwidth through a bigger pipe will be needed. The cost of serving more is close to zero. When looking at how best to analyze numbers and technology, it is always helpful to check what Gartner says ("Gartner Says Consumers Will Spend $2.1 Trillion on Technology Products and Services Worldwide in 2012," July 26, 2012 [http://www.gartner.com/it/page.jsp id=2094015]). Consumers worldwide are projected to spend that $2.1 trillion in 2012 on digital information and entertainment products, such as mobile phones, computing equipment, digital media, and services, according to Gartner. This growth trend is expected to continue during the next 5 years. Gartner expects spending on consumer technologies and services will grow by $130 billion worldwide each year through 2016, when it projects that it will reach $2.7 trillion. "The three largest segments of the consumer technology market are, and will continue to be, mobile services, mobile phones and entertainment services," said Gartner analyst Amanda Sabia. It is not just the cost that merits your focus. Everybody will be using streaming to share fun, sell products, make investments, and sell more. Free shifts our thinking from a focus on only that which can be quantified in dollars and cents to a more realistic accounting of all the things that can be valued by many. How About Imaging There are many user-oriented options to adapt imaging resources personally and professionally. First photography migrated to digital, replacing a lot of home and business darkrooms. With cameras included in every smartphone and tablet, picture-taking has gone mobile and instant at the same time. Take a picture or record a video and then immediately send it anywhere. CNN, The New York Times Co., all local, national and international news gathering services rely on these rarely paid remote reporters. Image editing software enables enhancements, artistic changes and total image change. You can purchase Adobe's Photoshop software [www.adobe.com] for a lot of money for a lot of editing features. Alternatives include online editing sites such as Pixlr [www.pixlr.com] for free. In between there are lots of options and lots of price and quality differences. Some of the keys to consider focus on what result is needed. To take advantage of the iPad's retina screen, it is necessary to take high-resolution pictures. On the other side, high definition resolution is not needed for family videos, training videos, web-based marketing material. Good quality is necessary as grainy and out-of-focus pictures will turn away users. It is likely you already have taken pictures and videos. To continue, you need to get better at editing, adding audio tracks, and inserting text titles. If important for the company, there are professionals who can be hired for correcting the image or video. Depending on your needs, this incremental expense can be useful. Video is not just about clarity of image. Too often, people forget about the quality of audio. Having a microphone at the back of a classroom will not produce a good listening experience. This is the time to make use of a quality microphone. For example, the Tempo MXL microphone has a USB connection and comes with a professional desktop tripod stand. The $80 purchase price includes access to free downloadable recording software [www.mxlmics.com/microphones/usb/Tempo]. If you want to listen to video while traveling, earbuds from AudioFly have very good noise-canceling sound reproduction. When you want to record or even use the phone to participate on voice calls, $70 will deliver listening and a microphone [www.audiofly.com/headphones/af45-detail.html] . Video streaming is here and being used successfully. Video streaming use will expand. The features available through 16mm or Super 8mm film are in the very distant past. Today there are robust capabilities to use video for quality messaging and communications. Stream away; the world awaits your creativity. CAREERING & STREAM You must engage with the process of how you will participate in this streaming future. The opportunities have an unstoppable expansion range: * Basic consumer paying what you can afford for what you want * Distributor of other people's content as a wholesaler or middle person * Developer of content to be distributed * Marketing any of the above * Teaching people how to use any of the above by Richard Oppenheim, CPA (c) 2012 Information Today, Inc. |