The global pandemic in 2020 has instantly transformed the global economy, prompting various industries to innovate and undergo digital transformations in response to the environment. This includes widespread adoption of touchless technology, remote work, telemedicine, and more. Cloud applications, high-speed internet, 5G, big data, and other technologies have begun to establish an interdependent ecosystem, consequently creating numerous new industries.

According to analysis by Cathay Securities (Note 1), e-commerce, electronic payments, cloud software, and social media are four rapidly growing emerging industries. Among these, social media platforms utilizing video streaming services for subscription consumption, value-added consumption, and advertising revenue are gradually replacing the position of traditional media. Research estimates that the video streaming market will reach a total value of $223 billion by 2028, with an annual growth rate of 21% (Note 2).

What is Video Streaming Service?

Video streaming services are primarily divided into streaming live (Live) and streaming on demand (VOD), distinguished by the timeliness of the content. Streaming on demand allows users or subscribers to select from a catalog of pre-recorded content, which is then delivered to the client for playback via internet streaming. Conversely, streaming live provides real-time content, where users or subscribers access content as it is being broadcast. Many live streaming platforms also incorporate additional features to enhance user experience and engagement, such as real-time interaction and archiving live content for future on-demand viewing.

Considerations for Live Streaming

Live streaming latency refers to the delay in delivering content from the broadcasting source to the client for playback. As streaming live offers real-time information, low latency is crucial for live streaming technology.

In the early stages of streaming technology, factors such as reliance on internet speed, media encoding technology, hardware specifications for encoding and playback were not mature, resulting in significant delays in live streaming, sometimes reaching two minutes or more. However, with advancements in various technologies, typical live streaming delays can now be controlled within 30 seconds. By optimizing the live streaming infrastructure, such as improving encoding pipelines, utilizing Content Delivery Networks (CDNs), and optimizing playback, latency can be further reduced to 5 seconds or less. This level of latency meets the requirements of most live streaming applications. The trend of integrating interactive features into live streaming services is significant. Interactive features expand the application scenarios of live streaming. Below are some application scenarios achieved through the low-latency characteristics and real-time interactive features of live streaming:

Online Education

The pandemic accelerated the digital transformation of the education industry. One advantage of digital teaching over traditional classroom teaching is that even if students cannot return to the classroom due to the pandemic or other reasons, digital teaching can achieve results similar to traditional classroom teaching. For example, students can participate in real-time polling or ask questions, facilitating more effective real-time feedback and statistics.

Live Sports Streaming

Online sports streaming relies heavily on the low-latency characteristics of live streaming. Additionally, live sports streaming provides a new online entertainment channel for users or subscribers worldwide.

Social Media Marketing

Social media marketing involves reaching target customer groups through social networks, publishing specific messages to attract their attention, and using social networks to generate widespread discussion and dissemination of messages. Social media marketing is recognized as one of the most effective marketing methods. Leveraging the live streaming functionality of social networks enables real-time responses to potential customer inquiries, allowing potential customers to understand product features and build confidence in the product.

Business Opportunities Brought by Live Streaming to Emerging Industries

In the six emerging industries identified by the National Development and Reform Commission (Note 3), some industries have begun to widely utilize live streaming functions, such as using video for remote diagnosis and promoting cultural creativity.

In summary, the application of video streaming services has the advantage of being unrestricted by geographical limitations, effectively expanding the potential customer base. Moreover, with the widespread adoption of smartphones (Note 4), users can conveniently receive information at different locations and times. These advantages, which traditional technologies cannot provide, bring significant business opportunities to traditional industries undergoing digital transformation or entirely new industries.
 

註1：https://www.cathayconsult.com.tw/market/fund-topic/65287
註2： https://www.grandviewresearch.com/press-release/global-video-streaming-market
註3：https://www.ndc.gov.tw/News.aspx?n=E641F7FF2AE058A1&sms=8B7FD77816422CEF
註4：https://www.cisco.com/c/en/us/solutions/collateral/executive-perspectives/annual-internet-report/white-paper-c11-741490.html#_Toc532256he809