Internet media streaming is facing stiff competition from traditional television, as online content owners feel the pressure to draw customers from TV to desktop screens, says IT analysts and consultants Frost & Sullivan.
Mukul Krishna, industry analyst at Frost & Sullivan, said: “This is an uphill task, considering the present quality of streaming over the internet compared to that of television and the amount of content available to television viewers.”
Internet content providers need to compensate for lower visual quality by concentrating on niche markets such as adult and sports entertainment, normally available by subscription or pay-per-view. A richer viewing experience, gained through higher bandwidth and better video compression, is also likely to attract new viewers.
Despite the challenges faced, the media streaming platform market holds great potential, according to Frost & Sullivan. In 2003, worldwide market revenue reached $720.5 million and this is expected to grow significantly by 2010.
With a number of competitors from the telecoms and other technology markets already waiting to exploit opportunities, streaming solutions that can deliver an increasing number of digital video files over the internet, cable/telecommunications environments and mobile wireless markets need to be ready to deliver, says the report.
Krishna added: “In a nutshell, market success of participants will hinge on the level of functionality, portability and reliability they can provide to their customers.”
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