According to Cisco, Internet video will account for half of all consumer Internet traffic by 2012.
In Cisco's Visual Networking Index, video already accounts for a quarter of all consumer Internet traffic. That number is expected to rise to 32 percent by the end of the year.
Where are the opportunities?
Areas I would watch for:
1. Transmission efficiency. Hardware and software that can speed up all types of video transmission.
2. Video search engines. While it's rather easy to scan text to provide relevant related searches, a search engine that can scan audio for words that are relevant will be big. I am thinking of how Google offers the "cache" feature in search results, but this becomes available for video searches as well.
a. this finds a video that is relevant to my search
b. takes me to the place in the video that pertains to my search.
Example: Bill Buckner blunder in 86' Mets victory. I don't remember what inning or game it was, but the search engine takes me to the spot in the video where the blunder occurred.
3. Devices. Soon all camera phones and video cameras will be connected to the Net and will be able to transmit live video feed. Add this to the numerous traffic cameras, surveillance (bank, building, residential) that already exist that will be connected. Opportunities: A massive number of IP addresses will be needed (IPv6) and this will create overload on some networks...alternate methods of Internet connection needed (White Space). In addition device relation management (DRM) software will be big. DRM is enterprise software that enables the monitoring, managing, and servicing of intelligent devices over the Internet.
4. Advertising. I don't mean just placing a video ad next to search results or next to content. I think there is a huge opportunity in placing an ad WITHIN a video. You see backstops at baseball games with ads on them, they are able to place a relevant ad according to the location of the viewer. (NY Yankee game shows Wiz Sports but a viewer watching the game in Florida might see a Sports Authority ad).
The real opportunity for video creators and distributors, is an application that allows an ad/graphic to be placed/inserted within the video.
Example: You're videotaping Johnny's soccer game and transmitting live on the Net to his grandparents. Just like Adsense, you will be able to earn revenue from an advertiser inserting an ad/graphic on the soccer field. Johnny's soccer field has a big Adidas logo on it. (think of the first down marker yellow line in football). A way to monetize the upcoming surge in video content.
Just some ideas I think will come with the video boom.
Any others you can think of?
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