This growth can be attributed to a number of new sites appearing such as the High-Quality video site, Hulu, which streams some of the most popular shows in high-quality. All of these new sites, combined with a much larger broadband penetration and higher speed connections, has led to the growth.
One thing the report doesn’t include — and something that the companies keep close to their chest — is the quality that users are selecting, and the amount of bandwidth used. Hi-def videos are becoming more and more the norm, but how many people actually have the ability to watch at that quality?
Closer to home (well, Australia where I live, but home is England), the market has seen a large growth in Broadband penetration and an increase in overall speed making video delivery viable. Add to this the investment of CDN companies like Akamai, and the recent introduction and growth of competitors like Limelight, and suddenly video is more affordable and accessible to companies than they realise.
The biggest challenge for this market is the sheer size and spread of the population. The government is working to deliver broadband to the more remote areas, but the actual speed won’t be fast due to the distances covered. Add to this that the CDN’s are concentrated in the cities — the best place for them -– and the gap between cities, and you start to see the potential latency issues that affect delivery.
Overall though, the quality of video in Australia has grown a lot in the last few years, and I’ve been lucky enough to be involved in some of the fantastic work going on this space over here. It’s exciting times, and I think customers are only now starting to realise the full potential that this once cost prohibitive media now has for their brands online.