Market | Part 2: Rapid Increases in Video Supply and Demand

Feb 1, 2010 – New York, NY

Market | Rapid increases in video supply and demand

The market for video will grow in all directions. There are several demand and supply side forces that are setting the landscape for this change:

• Demand for video is growing | In particular as the public becomes more comfortable with the power they now have to consume media in the way they choose. The growth in the popularity of Personal Video Recorders (PVR’s) such as TIVO exemplifies this shift.
• Expectations are rising | The standard for interactivity and participation is continuing to grow. Not offering interaction for websites and content (e.g. providing comments, reviews, ratings) is becoming less common. The public is also becoming more comfortable with interacting online with people they never met in the real-world. Including recording video of themselves. Recording yourself for the web is already second nature to teens and twenty-somethings.
• Supply of video is growing | Every day, more and more video is uploaded, indexed, digitized, and mashed, creating ever growing library of content.
• Infrastructure is available | The idea of watching a full length computer via the web was seen as impractical just a few years ago. Now it is the standard, and more possibilities are on the way.

Some fast facts on the growing market:

• Quintuple | The amount by which Global IP traffic will grow from 2008 to 2013.
• 40% | The compound annual growth rate (CAGR) of IP traffic.
• 4x times | How much bigger the Internet will be in 2013 in comparison to 2009.
• 10 billion | The equivalent number of DVDs that will cross the Internet each month in 2013.
• 33% | The 2009 percentage of consumer Internet traffic that is video.
• 60% and 91% | The 2013 percentage of consumer traffic that will be accounted for by Internet video and all video (TV, video on demand, Internet and P2P) respectively.
• 700 to 1 | The amount of Internet video in 2013 in comparison to the entire U.S. Internet backbone in 2000.
• 500,000 years | How long it would take to watch all of the online video that crosses the Internet each month in 2013.
• 18 Exabytes | The amount of Internet video generated each month in 2013.
• 1 Billion | The number of ‘Gigabytes’ in 1 ‘Exabyte’.
• 2x times | The amount by which Video-on-Demand (VoD) traffic and mobile data traffic will increase every two years through 2013.
• 66x times | The amount by which global mobile data traffic will increase between 2008 and 2013.
• 30 | How many traditional mobile phones it takes to equal the amount of data traffic generated by one smartphone (e.g. iPhone, Android, Blackberry, Windows Mobile).

Source: “Cisco Visual Networking Index: Forecast and Methodology, 2008-2013” Cisco, Jun 9, 2009.

With strong growth in both supply and demand in video, what are the opportunities? Check out:

Check out Opportunities | Part 3: The Potential Applications for Video are Everywhere.

Chris Becker
CEO – Filemobile Inc.

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