Growing Tablet, Mobile Video Consumption Will Eventually Lead ISPs to Reallocate Bandwidth

By Gary Kim June 19, 2013

The share of tablet and mobile video grew 19 percent in the first quarter of 2013, according to Ooyala.

Mobile and tablet video now account for more than 10 percent of all online video plays, the most ever recorded in the Ooyala Global Video Index.

Globally, desktop viewers watched live news, sports and special events for an average of 40 minutes per play in the first quarter of 2013.

On average, people streamed live video on smart TVs and gaming consoles for 45 minutes per play, about nine times longer than video on demand content.

Desktop viewers watched live video 13 times longer than VOD in the studied quarter, while tablet video viewers watched live video four times longer than VOD, and mobile audiences tuned in to live video three times longer than they did video on demand.

Both mobile and tablet video viewers spent more than half of their total online viewing time watching long-form videos, and 25 percent of total tablet viewing time was spent with content more than 60 minutes long, Ooyala says.

All of that has implications in other parts of the communications business.

As linear TV is viewed less, and as the number of subscribers dips, there will be new questions about the highest and best use of access bandwidth.

Today, for example, access providers have to decide how much capacity to allocate for linear TV services, and how much to allocate for Internet access, which in some ways is a proxy for streaming video.

If Internet access demands continue to increase, and pressure on linear TV revenue continues, access providers will start to look at whether it makes sense to carry less linear TV and allocate bandwidth for Internet access.

That is a revenue generation exercise: how much revenue and margin do we make selling Internet access, compared to TV services, and what changes if we allocate more bandwidth for Internet access?

Cable TV providers have grappled with this issue before. Though there was in the past some capital investment advantage to delivering linear TV in analog format, cable operators began shifting to digital delivery, even with the higher customer premises equipment costs.

The countervailing advantage was bandwidth reclamation. By freeing up bandwidth, cable operators were able to make bandwidth available for Internet access services.

That logic will continue to prevail if demand for linear services dips and demands for Internet bandwidth continue to increase.

At some point, that same business driver will cause providers of linear video services to rethink how many networks they really do need to carry.




Edited by Alisen Downey

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Remote Work: The Future of IT

By: Special Guest    6/28/2017

Remote work opportunities are on the rise thanks to innovative technology that makes telecommuting and virtual collaboration more effective than ever …

Read More

WannaCry? No, It's Worse in New Ransomware Attack

By: Steve Anderson    6/28/2017

A wave of ransomware attacks strikes computers across much of the planet, leading some to wonder if WannaCry has made a return.

Read More

Surface Pro, Surface Book, Surface Notebook: The Choice Is Surprisingly Easy

By: Rob Enderle    6/27/2017

I've been using Microsoft's latest versions-or, in some cases, the only versions-of its Surface PC line of products. Each is very different in terms o…

Read More

Two Technologies That Showcase Good VR Could Cost $20K

By: Rob Enderle    6/23/2017

This month, there were two interesting product announcements. The first was in regard to very high-resolution displays that should arrive in VR headse…

Read More

Popularity of Voice Recognition Gadgets Highlights Need for Speech Analytics

By: Kayla Matthews    6/21/2017

Voice-activated personal assistant platforms such as Amazon's Alexa continue to grow in popularity, making lives easier in all sorts of ways. As such …

Read More