Streaming content growing at a tremendous rate

Email LinkedIn
Tools


As I write this week's Editor's Corner, I'm headed to CeBIT, the humongous technology and electronics show in Germany. Spread out over 24 buildings, it's one of the largest conferences in the world, and it got me thinking about big content. There's certainly no shortage of content these days, but one area that seems to be growing at an enormous rate is TV content, especially the streaming variety.

Services like Netflix and Hulu-Plus are delivering more and more content to us. How much? Consider that, according to an article by Steven J. Vaughan-Nichols last Fall on ZDNet, a study by Sandvine found that streaming video and music accounted for a whopping 45.7 percent of data on the Internet. Of that, Netflix "accounted for 20.6 percent of all peak period bytes downloaded on fixed access networks in North America." That's simply astonishing when you consider how much other data is moving around.

You have commerce, data and even streaming video moving through Amazon's servers. You have tons of data moving across Google's (NASDAQ: GOOG) servers--including millions of videos on YouTube. Yet it's Netflix that leads the way by far. What makes it even more surprising is that Netflix hasn't been a streaming service for all that long.

Prior to that, they made their name as DVD delivery service and that's still part of their business today. But the streaming service is what's changing the TV-watching landscape. Suddenly, you can stream Netflix through gaming systems and streaming TV boxes like Roku, Apple TV and Boxee. People can watch what they want, when they want and it's shaking the very foundation of television.

It's one of the big reasons, I believe, that Comcast bought NBC Universal, because with delivery mechanisms like these streaming media boxes, you really don't need a cable company for TV. You are no longer tied to when someone broadcasts. As content becomes central to this equation, NBC and its various properties, give Comcast a huge source of content.

Unfortunately, much of the streaming content on Netflix currently consists of older television shows and movies. Hulu-Plus has the advantage of having tons of more desirable, current content. Comcast still has an upper hand though, at least for now, because its On Demand service lets viewers watch many of those shows when they want without having to worry about the delivery inconsistencies you sometimes get when streaming content over the Internet, but you pay dearly for the privilege with a huge cable bill.

It's worth mentioning that with NBC, Comcast also purchased a third of Hulu-Plus--although the Federal Communications Commission is trying to prevent Comcast from any decision-making power for the service.

While the landscape is changing rapidly, one thing is certain. Streaming media will continue to dominate content delivery and being able to produce and manage huge amounts of content is going to be more important than ever. Just some big ideas to contemplate as I head to an enormous technology conference across the sea. - Ron