According to Wikipedia, “streaming media is multimedia that is constantly received by and presented to an end-user while being delivered by a provider”. In layman’s terms, it’s media that you consume but don’t have to download. Netflix streams television shows, while iTunes allows you to download the content. Streaming media is undergoing a huge expansion in popularity and ubiquity. In turn, this creates a lot of opportunities for different businesses. Industries that have been fearing a decline due to technological advancements (like the movie industry and music industry) are hopeful that streaming can change their fortunes, while other companies can take advantage of the global potential for viewers that streaming provides.
Over the last few years consumers have changed the way they listen to music and watch videos on the web. Online media consumers have transitioned from downloading songs and movies on illegal platforms to increasingly watching movies and listening to music by streaming the content through a legitimate channel. We are witnessing a change in music and video consumption: people are more and more likely listen to music and watch videos via legal means. This increases revenues for both labels and artists while providing companies with new marketing opportunities.
In today’s digital age, streaming offers more flexibility than traditional content transmission mediums such as television, which enables viewers to get what they want when they want it rather than when the music and video industries decide to present it (for more information, please see our other blog article: On Demand Content Distribution Becoming More Sought After Than Traditional Broadcast). This explains the consumers’ motive behind the immense and growing popularity of streaming technology.
Nothing is popular without profit, however, and as such it is no surprise that there are several different ways for streaming websites to make money. Some, such as YouTube, require you to watch an advertisement before being able to access a video. Others, such as the French “Deezer” launched in 2006 and the Swedish “Spotify” launched in 2008 allow you to choose between paying for an advertisement-free subscription or a limited amount of listening time per month with advertisements.
The revenue obtained from the advertising and subscriptions is then split between the music labels and the website. The advantages of streaming for the music and movie industries are obvious in that they turn a group of non revenue-generating customers (illegal downloaders) into a group of revenue-generating customers (streamers). In addition, this has several consequences that will further reduce expenses or increase revenue for these industries including a reduced need to prosecute copyright infringers.
Streaming also offers new digital marketing opportunities for companies, and as the streaming technology becomes more universally accessible and more popular, the number of potential customers grows. What’s more, consumers around the globe can all view the same video and listen to the same music on the same host website. This offers huge potential for companies that would like to go global, because the audience they are reaching through streaming is not only national but international. Cimaglia Productions’s top-of-the-line digital video production services can help you create innovative video content for domestic and interantional consumers of streaming content.